Calyxt, Inc. (Nasdaq: CLXT), a plant-based synthetic biology company, and Cibus, a leader in precision gene editing in agriculture, has announced that they will merge in an all-stock transaction. The merger will create a new industry-leading company that combines the two pioneers in agriculture-based gene editing and establishes one of the world’s most sophisticated facilities for trait development and next-generation plant breeding.
The combined company will be a leader in two key applications for gene editing in agriculture: Productivity Traits, which are a key basis of competition in the “seed and trait” business, and Renewable Low-Carbon Ingredients. Cibus has a broad pipeline of productivity traits and collaborations with several leading seed companies and is currently launching three important productivity traits in canola and rice, with transfers to customers for commercialization beginning in the first half of 2023. In addition, both companies are working with leading consumer product companies to develop more sustainable ingredients.
Under the terms of the merger agreement, Calyxt will issue shares of its common stock to Cibus shareholders in an exchange ratio such that upon completion of the merger, Calyxt shareholders will own approximately 5% of the combined company. The Boards of Directors of both companies have unanimously approved the transaction. The merger is expected to close in the second quarter of 2023, subject to customary closing conditions, including approval of the merger by the shareholders of Calyxt.
“Cibus is an excellent strategic fit for Calyxt given our complementary technology platforms, and the merger provides a great opportunity to leverage multiple synergies to drive innovation and shareholder value,” said Michael A. Carr, President and Chief Executive Officer of Calyxt. “I am deeply proud of the significant accomplishments made by our team and their commitment to further science in significant ways.”
“We believe 2023 will be a transformative year for Cibus due to many of our major accomplishments that are coming to fruition this year,” said Rory Riggs, Co-Founder, Chief Executive Officer, and Chairman of Cibus. “Through our Trait Machine™, which is planned to come on-line in a stand-alone facility in 2023, we are preparing to transfer our first product: a pod shatter reduction trait in canola in the elite germplasms of five different canola seed companies. In addition, in 2023, we are preparing to transfer two different herbicide resistance traits in rice in the elite germplasm of a leading North American rice seed company.”
The merger will bring together the strengths of both companies, allowing for greater opportunities for innovation and growth. The combined company will have access to a wide range of technologies, resources and expertise that will allow it to further advance in the field of gene editing and plant breeding. The merger will also allow the company to better serve its customers, providing them with access to a wider range of products and services, while also helping to drive sustainable growth and development.
Overall, the merger of Calyxt and Cibus is expected to be a positive development for both companies, as well as for the industry as a whole. The merger will create a new industry-leading company that will be well positioned to capitalize on the growing demand for sustainable and high-performance crop solutions, while also helping to drive innovation and growth in the field of gene editing and plant breeding.
Image Calyxt & Cibus
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