Casterra Announces Additional Agreements with Seed Producers to Meet Existing & Growing Demand for its Elite Castor Seeds

Rhea-AI Summary

Casterra Ag has signed new agreements with seed producers in Africa to meet the growing demand for its elite castor seeds. These agreements will support the production of approximately 500 tons of additional seeds, ensuring the fulfillment of orders received in 2023 by the end of 2024.

Together with previous agreements for 400 tons of seeds announced in February, this move positions Casterra to fulfill both current and future demands. The company leverages Evogene's 'GeneRator AI' technology to develop high-yielding, high-oil castor seeds, important for sustainable biofuel production.

Casterra aims to establish a reliable seed production infrastructure, mitigating production risks and reinforcing its market position in the biofuel industry.

Positive

• New agreements will support an additional 500 tons of seed production.
• Previous agreements in February added 400 tons of seed production capacity.
• Fulfillment of 2023 orders expected by the end of 2024.
• Leverages 'GeneRator AI' technology for high-yield, high-oil seeds.
• Expanding partnerships with seed producers in Africa.
• Proactive commitment to meet dynamic market needs.
• Mitigates potential production risks.
• Strengthens position in the biofuel industry.

Negative

• Significant reliance on African seed producers could pose geopolitical risks.
• Potential delays or disruptions in seed production could affect order fulfillment.
• No specific financial data disclosed about the agreements.
• Risk of overproduction if future demand does not meet expectations.

Market Research Analyst

Market Dynamics: The agreements signal a robust response to growing demand for bio-based industrial applications, a sector anticipated to see significant growth. Biofuels, in particular, have gained traction due to increased environmental regulations and the shift towards sustainable energy sources. By securing additional seed production, Casterra is positioning itself to capture a larger market share, meet rising demand and mitigate supply chain disruptions. This move could enhance investor confidence in the company's ability to scale and adapt to market needs.

Potential Impact on Business: The agreements could lead to increased revenue streams in the long run as Casterra meets the growing demand for castor seeds, fundamental for biofuel production. The company's proactive approach in securing partnerships may serve as a buffer against future uncertainties, such as supply chain disruptions, which have been prevalent in various industries recently. However, it's worth noting that the impact on the stock might not be immediate, as the benefits of these agreements will manifest more clearly towards the end of 2024.

Financial Analyst

Financial Implications: Securing agreements for an additional 500 tons of castor seeds will likely lead to an increase in production capacity, translating to higher potential revenues. By the end of 2024, Casterra should be in a strong position to meet existing and future orders. This strategic move could also lead to better economies of scale, potentially lowering the cost per unit of production. However, investors should keep an eye on the cost associated with these agreements and the subsequent increase in operational expenses. The financial success will depend on the company’s ability to manage these costs effectively and convert increased production into actual sales and profits.

Strategic Positioning: The integration of Evogene's 'GeneRator AI' tech engine adds a technological edge to Casterra's offerings, which could further attract investors. By continuously developing high-yielding, high-oil castor seeds, Casterra aims to stay ahead of industry standards, implying a competitive advantage. Investors should monitor how these technological advancements translate into market leadership and financial performance.

These agreements are expected to support the production of approximately 500 tons of additional seeds, enabling the completion of standing orders by the end of 2024 and positioning Casterra to fulfill future orders.

 REHOVOT, Israel, May 21, 2024 /PRNewswire/ -- Casterra Ag Ltd., an integrated solutions company for growing castor for bio-based industrial applications, such as biofuels & biopolymers and a subsidiary of Evogene Ltd. (Nasdaq: EVGN) (TASE: EVGN), announced it has recently signed new agreements with both existing and new seed producers in Africa. These agreements are anticipated to bolster Casterra's seed supply capabilities with an addition of approximately 500 tons of high-yielding, high-oil castor seeds. This new addition, together with previous agreements of approximately 400 tons of seeds announced in February this year, is expected to enable Casterra to fulfill the orders received in 2023 by the end of 2024. In addition, this new production will position the company to provide additional supplies for future orders.

Elite high-yielding, high-oil castor seeds are essential for castor cultivation, supporting the economic efficiency of oil production as a source of sustainable biofuel. Casterra's elite castor varieties are continuously developed to meet and surpass the industry standards, utilizing Evogene's 'GeneRator AI' tech engine.

Mr. Yoash Zohar, CEO of Casterra, said: "Expanding our partnerships with existing and additional seed producers strengthens production capabilities, marks a proactive commitment to meet the dynamic needs of customers and markets worldwide and also mitigates potential production risks. Casterra is committed to establishing a reliable seed production infrastructure and is strengthening its position as a leading company offering a comprehensive solution for the commercial cultivation of castor plants for the biofuel industry."

About Casterra Ag Ltd.:

Casterra is an integrated solutions company for growing castor for bio-based industrial applications, such as biofuels & biopolymers. It has built its castor genetic assets based on a broad collection of over 300 castor lines from 40 different geographic and climatic regions. As part of its development process, Casterra applies advanced breeding methods utilizing Evogene's GeneRator AI tech-engine, enabling cutting-edge plant genomics tools and agro-technique expertise to enable efficient and sustainable industrial-scale production of the castor bean.

For more information, please visit http://www.casterra.co

About Evogene Ltd.:

Evogene (Nasdaq: EVGN) (TASE: EVGN) is a computational biology company aiming to revolutionize the development of life-science-based products by utilizing cutting-edge technologies to increase the probability of success while reducing development time and cost. Evogene established three unique tech-engines - MicroBoost AI, ChemPass AI, and GeneRator AI – leveraging Big Data and Artificial Intelligence and incorporating deep multidisciplinary understanding in life sciences. Each tech-engine is focused on the discovery and development of products based on one of the following core components: microbes (MicroBoost AI), small molecules (ChemPass AI), and genetic elements (GeneRator AI).

Evogene uses its tech-engines to develop products through subsidiaries and strategic partnerships. Evogene's subsidiaries currently utilize the tech-engines to develop human microbiome-based therapeutics by Biomica, ag-biologicals by Lavie Bio, ag-chemicals by AgPlenus, medical cannabis products by Canonic and castor varieties, for the biofuel and other industries, by Casterra.

For more information, please visit www.evogene.com

Forward-Looking Statements: 
This press release contains "forward-looking statements" relating to future events. These statements may be identified by words such as "may", "could", "expects", "hopes" "intends", "anticipates", "plans", "believes", "scheduled", "estimates", "demonstrates" or words of similar meaning. For example, Evogene and its subsidiaries are using forward-looking statement in this press release when it discusses Casterra's ability to fulfill the orders received in 2023 by the end of 2024 and the effect of the new production agreements on Casterra's ability to fulfill forthcoming orders. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performance or achievements of Evogene and its subsidiaries may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors, many of which are beyond the control of Evogene and its subsidiaries, including, without limitation, the current war between Israel and Hamas and any worsening of the situation in Israel such as further mobilizations or escalation in the northern border of Israel, and those risk factors contained in Evogene's reports filed with the applicable securities authority. In addition, Evogene and its subsidiaries rely, and expect to continue to rely, on third parties to conduct certain activities, such as their field-trials and pre-clinical studies, and if these third parties do not successfully carry out their contractual duties, comply with regulatory requirements or meet expected deadlines, Evogene and its subsidiaries may experience significant delays in the conduct of their activities. Evogene and its subsidiaries disclaim any obligation or commitment to update these forward-looking statements to reflect future events or developments or changes in expectations, estimates, projections, and assumptions.

IR Contact
Rachel Pomerantz Gerber
Head of Investor Relations at Evogene
rachel.pomerantz@evogene.com
Tel: +972-8-9311901

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SOURCE Casterra Ag Ltd.

FAQ

What recent agreements has Casterra signed to meet the demand for castor seeds?

Casterra has signed agreements with new and existing seed producers in Africa to produce an additional 500 tons of high-yielding, high-oil castor seeds.

How much additional castor seed production is expected from Casterra's new agreements?

The new agreements will support the production of approximately 500 tons of additional castor seeds.

When does Casterra plan to fulfill the orders received in 2023?

Casterra expects to fulfill the orders received in 2023 by the end of 2024.

What technology does Casterra use to develop its elite castor seeds?

Casterra utilizes Evogene's 'GeneRator AI' technology to develop high-yielding, high-oil castor seeds.

What are the benefits of Casterra's elite castor seeds?

Casterra's elite castor seeds are high-yielding and high-oil, supporting the economic efficiency of oil production for sustainable biofuel.

How does Casterra mitigate potential production risks?

Casterra mitigates potential production risks by expanding partnerships with seed producers and establishing a reliable seed production infrastructure.

What is the focus of Casterra's recent business development?

Casterra's recent business development focuses on expanding seed production capabilities to meet growing demand and fulfilling future orders.