In a recent announcement, Argo Living Soils Corp. (CSE: ARGO) (OTC Pink: ARLSF) has proudly shared its latest licensing collaboration with the Canada-based firm Canadian AgriChar Inc. This collaboration entails an exclusive global licensing deal for the “CHAR+ BioChar” soil amendment product, valid for a decade’s initial tenure.
Key Points of the Agreement:
- Argo obtains the sole rights and license to market and retail the “CHAR+ BioChar” product globally for ten years.
- “CHAR+ BioChar” will be available on Argo’s official website, argolivingsoils.com.
- The company will accrue a designated percentage of all “CHAR+ BioChar” sales through Argo’s website.
- In return for these privileges, Argo will issue 1,000,000 common shares to Canadian AgriChar, split into two phases: 500,000 shares upon the agreement’s commencement and another 500,000 six months after the initiation date. These shares hold a calculated price of $0.15 each.
- Additionally, 1,300,000 stock options, valid for five years and priced at $0.15 each, will be given to crucial Canadian AgriChar officials. These options will be equally vested over two years and undergo a four-month statutory holding period post-issuance date.
Peter Hoyle, the CEO of Argo, expressed his enthusiasm about this collaboration, emphasizing the diverse applications of biochar – from agriculture and water treatment to environmental restoration and various industrial uses. He stated, “We believe Argo will benefit from access to the many opportunities this product offers.”
However, this licensing deal is still awaiting approval from the Canadian Securities Exchange.
The collaboration also highlights a “related party transaction” since Ken Bowman, a director and officer of Argo, controls Canadian AgriChar. However, specific exemptions have been employed based on the criteria set under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. Renowned as Canada’s topmost manufacturer and distributor of the proprietary “CHAR+ BioChar,” Canadian AgriChar has served the nation for over 14 years. Its distribution center in Maple Ridge, British Columbia, boasts a comprehensive range of products, including soil amendments, organic fertilizers, and odor control solutions. Established in 2018, Argo Living Soils Corp. is an industry leader in developing and producing organic items such as soil amendments, living soils, bio-fertilizers, vermicompost, and compost tea kits, exceptionally curated for premium crops. With its primary facilities in Galiano Island, British Columbia, Argo’s overarching vision is to pave the way for environmentally friendly and organic products.