Key Takeaways:
- Yield10 Bioscience, Inc. signs MOU and License Agreement with Nuseed Nutritional US Inc., a subsidiary of Nufarm Limited, granting a commercial license to Omega-3 intellectual property assets.
- Nufarm will pay Yield10 up to USD 5 million under the License Agreement.
- The agreement includes exclusive negotiations for selling Yield10’s remaining assets to Nufarm, pending shareholder approval.
- The transition aims to provide a sustainable, land-based supply of omega-3 oils to meet growing global demand.
- Collaboration is expected to expedite the commercialization of plant-based omega-3 oils using Camelina.
Yield10 Bioscience, Inc. (OTC: YTEN), a pioneering agricultural bioscience company, announced the signing of a Memorandum of Understanding (MOU) and License Agreement with Nuseed Nutritional US Inc., a subsidiary of Nufarm Limited (ASX: NUF). This strategic move grants Nufarm a commercial license to specific Omega-3 intellectual property assets, materials, and know-how for oil production in Camelina, a versatile oilseed crop.
Under the terms of the License Agreement, Nufarm will make payments to Yield10 totaling up to USD $5 million. In addition to this financial arrangement, Yield10 and Nufarm have committed to exclusive negotiations for the potential sale of Yield10’s remaining assets to Nufarm. This prospective sale will be subject to shareholder approval, for which a special meeting will be convened following the finalization of the asset purchase agreement.
Addressing Omega-3 Supply Challenges
The production of omega-3 fatty acids in Camelina represents a promising solution to the increasing pressure on the global supply of high-quality omega-3 oils. Traditionally, eicosatetraenoic acid (EPA) and docosahexaenoic acid (DHA), essential omega-3 fatty acids, are sourced from ocean-caught fish, particularly anchovies. Overfishing has led to a strained supply, prompting the need for alternative, sustainable sources.
By leveraging Camelina as a land-based crop for omega-3 oil production, Yield10 aims to provide a predictable and environmentally friendly supply chain. This initiative aligns with the rising demand for EPA and DHA, which are crucial for various health applications, including cardiovascular and cognitive health.
Strategic Fit with Nufarm’s Vision
Greg Hunt, CEO and Group Executive of Nufarm, expressed enthusiasm about the collaboration, highlighting the alignment with Nufarm’s Value Beyond Yield® and platform strategies. “Yield10’s Camelina assets and know-how in both omega-3 and bioenergy sectors offer a unique fit for our portfolio. While further development and investment are necessary before achieving revenue, this program broadens the range of solutions we offer to our customers,” Hunt stated.
Ensuring a Smooth Transition
Oliver Peoples, Ph.D., President and Chief Executive Officer of Yield10 Bioscience, emphasized the strategic benefits of the agreement for stakeholders. “Transitioning our Omega-3 Camelina program to Nufarm is in the best interest of our shareholders, business partners, and employees. The initial payment will help us manage key biological assets and regulatory requirements, providing us with the necessary resources to secure the shareholder vote,” Peoples explained.
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