In April of this year, Agrinos announced it had entered into an initial pre-commercial test phase with Syngenta to explore the viability of different product combinations, to be marketed as new offerings by Syngenta. The trial results to date have supported a decision to expand the cooperation and initiate commercial discussions.
The board of directors of Agrinos also announced that Syngenta, through its subsidiary Syngenta Ventures Pte. Ltd., will invest $10 million in Agrinos. The net proceeds of the private placement will be used for working capital related to increased market penetration and for general corporate purposes. Syngenta will be appointing an observer to the Board of Agrinos upon the completion of the transaction.
The expanded agreement will enable Syngenta to bring Agrinos products to market either in combination with existing Syngenta technologies or on a stand-alone basis starting in the first quarter of 2013.
Simultaneously, trials will continue within Europe, Middle East and Africa on further crops, and plans for new trials in the Asia Pacific and Americas regions will be developed. The results from these trials will form the basis for further commercial expansions within the cooperation.
Agrinos and Syngenta will furthermore initiate discussions on how to utilize the Agrinos technology either in combination with existing Syngenta technologies or on a standalone basis in formulated crop protection offerings. This will be a significant first step for Agrinos in moving into the crop protection market from a biological platform.