Q: Would love to hear your thoughts on this news release please.
https://mailchi.mp/mustgrow.ca/mustgrow-biologics-and-bayer-sign-commercial-license-agreement-for-biocontrol-technologies-in-europe-middle-east-and-africa?e=18c39fa5ca
https://mailchi.mp/mustgrow.ca/mustgrow-biologics-and-bayer-sign-commercial-license-agreement-for-biocontrol-technologies-in-europe-middle-east-and-africa?e=18c39fa5ca
5i Research Answer:
Though financial details were not revealed, it is a big marquee contract for MGRO, and Bayer can now be a reference customer. MGRO gets an upfront payment and royalties, and Bayer gets first right of refusal on bananas. A large geographic area is covered. MGRO is still down 59% this year but this is a good confirmation of the robustness of its solutions. Cash flow is still negative and risks are still high, and we would not expect miracles here, but it is a nice win for the company.