1st Jun 2009 07:00
Plant Impact plc
("Plant Impact" or the "Company")
1 June 2009
Significant Exclusive Licence Agreement for BugOil®
Plant Impact (AIM:PIM), a developer of technologies that improve crop productivity, is pleased to announce that on 29 May 2009 it entered into a significant exclusive licence agreement with Arysta LifeScience Corporation ("Arysta") for the sale of Plant Impact's flagship BugOil® product ("Licence Agreement").
Highlights:
Exclusive worldwide licence in relation to the BugOil® product granted to Arysta, a global top 10 agrochemical company by revenue.
The licence grants Arysta the exclusive right to manufacture, market, sell and distribute BugOil®.
Potentially a multi-million pound agreement including milestone payments and royalties.
Background
BugOil®, a patented technology developed by Plant Impact over 6 years, is a patented plant insecticide that uses a synergistic blend of plant essential oils to act against sap-feeding pests including mites, whitefly, thrips and aphids. BugOil® has proven high levels of efficacy and safety to the environment, users and customers when compared to currently available competitive products whose sales currently exceed US$800 million.
Plant Impact announced in December 2008 that the product registration dossier for European Union regulatory approval for BugOil® ,that was submitted in August 2008, had been passed as complete by the Pesticides Safety Directorate in the UK. The Company expects to receive approval towards the beginning of 2010, leading to first sales during the same year. The Company is working in conjunction with Arysta for registration in the USA, Latin America, Europe, Africa and the Middle and Far East, where the Company believes BugOil® will make a significant difference to quality of life and living standards.
On 19 February 2009 Plant Impact announced that following extensive trials conducted by Plant Impact on BugOil® to test efficacy and enable assessment of market potential, it had entered into a non-binding letter of intent in relation to the licensing of BugOil® and that it expected a definitive licence agreement to be entered into during the first half of 2009.
Details of the Licence Agreement
The Licence Agreement grants to Arysta an exclusive worldwide licence, with the right to sublicence, to manufacture and sell BugOil® in all fields except the home and garden and animal health markets. Under the Licence Agreement Arysta is also granted certain rights in relation to any further development of BugOil® by Plant Impact. Plant Impact reserves the right to engage in further research and development regarding BugOil®. Plant Impact remains responsible for costs in relation to the maintenance of the BugOil® patents and obtaining the necessary regulatory approvals to sell BugOil® in the United Kingdom, the European Union and the United States. It is Arysta's responsibility to register the product at state level in the United States and country level in the rest of the world.
Milestone Payments
The Licence Agreement provides that there shall be paid to Plant Impact milestone payments of increasing sums on:
the signing of the Licence Agreement;
achieving four regulatory milestones; and
achieving three sales target milestones.
Royalty Payments
The Licence Agreement provides that Plant Impact shall be paid a royalty on the sales of BugOil® by Arysta. The level of this royalty payment is in line with the usual rate of royalty payable in the agrochemical industry.
Term
The Licence Agreement has a term of 20 years.
Plant Impact and Arysta are also in discussions regarding access to distribution and potential licensing rights for certain plant nutrient technologies and products owned by Plant Impact. Further announcements on these discussions are anticipated later in 2009.
Chris Richards, Arysta CEO, said:
"Arysta is delighted to have secured rights to BugOil®, which will provide a valuable addition to our portfolio of products for our customers, particularly in fruit and vegetable crops. Arysta's global capability in the development and marketing of novel products for growers, is an excellent complement to Plant Impact's outstanding capability in invention; we look forward to continued co-operation with Plant Impact and their plant nutrition and other products."
Peter Blezard, CEO of Plant Impact said:
"We are delighted to have signed our first full licence agreement with Arysta. This agreement is the culmination of many years' research, development and hard work. We believe it is a company changing deal, which will help revolutionise the agrochemical industry, bringing significantly improved crop yields and greater awareness of the planet's environmental issues. With its global network of operations in 125 countries and solid commitment to the BugOil® product we are confident of Arysta achieving significant annual sales of BugOil® during the term of this agreement."
For further information, please contact:
Peter Blezard Tel: +44 (0) 1772 645 164
CEO
Plant Impact
Anna Dunphy / Tristan Jervis Tel: +44 (0) 207 861 3838
Financial PR/IR
De Facto Communications
Emily Morgan / Nick Harriss Tel: +44 (0) 207 489 4500
Blomfield Corporate Finance Limited (Nomad)
Nicholas Malins-Smith Tel: + (0) 207 382 4467
Religare Hichens, Harrison (Broker)
Arysta LifeScience Corporation
Headquartered in Tokyo, Japan, Arysta is the world's largest privately held crop protection and life science company with 2008 revenues of JPY134 billion (US$1.3 billion). An entrepreneurial provider of crop protection and life science products in more than 125 countries worldwide, Arysta specialises in marketing and distribution of respected crop protection brands and life science products in harmony with the needs of global partners. More information on the company is available at: www.arystalifescience.com.
About Plant Impact plc
Plant Impact addresses the increasing global demand for effective, sustainable and ecologically-sound products to combat environmental plant stress and improve crop productivity. Common environmental plant stresses include drought, salinity, nutrient deficiencies, pests and disease. Plant Impact's advances produce practical results that reduce inputs and benefit the whole of the agricultural value chain, providing solutions for growers, food manufacturers and consumers.
A broad product portfolio has been developed using these innovative and proprietary technologies, the most advanced of which are already being marketed and sold through established agricultural distribution networks. Products for the home and garden market are also distributed direct to consumers through reputable high street stores.
About BugOil®
BugOil® is a benign insect and mite control agent derived from essential plant oil technology that offers highly effective control in a non-toxic, environmentally friendly method. The pests targeted by BugOil® are mites, whitefly, thrips and aphids; these pests are some of the most damaging and most difficult to control as they reproduce quickly in mass numbers and can build resistance to conventional pest control agents.
Independent field trials conducted on BugOil® have demonstrated that the product has pest control abilities at least equal to, if not better, than those of current industry-standard insecticides. BugOil® also provides broad-spectrum pest coverage, particularly for ornamentals such as cut flowers. All field trials were conducted to regulatory standard by independent third parties on high-value crops such as ornamentals, fruit and vegetables. To date, successful field trials have been conducted on BugOil in the USA, UK, Europe and Africa.
BugOil® technology:
·; high level of efficacy equivalent to most current synthetic standards;
·; based totally on natural plant extracts;
·; safe for many non-target organisms including mammals, fish, birds, and most beneficial insects (bees, earthworms, lacewings, ladybirds); and
·; non-toxic and environmentally friendly.
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