MGRO stock soars on Bayer deal

Shares of MustGrow Biologics (MustGrow Biologics Stock Quote, Chart, News, Analysts, Financials TSXV:MGRO) are leading the TSXV today after the company inked a deal with Bayer.

The deal centres around MGRO’s mustard-based biocontrol tech. The Saskatchewan-based company designs biocontrol and biofertility products that hardness the natural defense mechanisms of the mustard plant.

“MustGrow is thrilled to commercialize our technologies with Bayer in three important food producing regions. Through Bayer’s research, development and commercial teams we have seen a rapid advancement in our product and market knowledge in the last two years,” said CEO Corey Giasson. “Working with the leader in global crop science and sustainable agriculture is a tremendous opportunity for our organization to see our mustard plant-based technologies commercialized globally.”

Under the terms of the agreement, MustGrow will will receive an upfront payment, plus milestone-related bonuses. The company says the deal could be worth as much as (US) $35 to $40-million.

“Biologicals are part of an exciting frontier that offers new solutions for the challenges that growers face across the world,” Benoit Hartmann, Head of Biologics for Bayer said. “We’re committed to working with leading innovators like Mustgrow to accelerate the development of innovative biological solutions that provide safe, sustainable options for farmers and are looking forward to continuing our work together.”

At press time, shares of MGRO were up 38.1 per cent to $1.45.