MustGrow Receives First Milestone Payment from Bayer AG
Rhea-AI Summary
MustGrow Biologics (OTCQB: MGROF) announced receipt of the first development milestone payment from Bayer AG under their December 2023 License and Collaboration Agreement for mustard-based biocontrol soil applications in Europe, the Middle East and Africa.
Bayer is responsible for formulation, regulatory studies, submissions, registrations and commercialization activities in the territory. MustGrow estimates that the combined value of upfront and potential milestone payments plus Bayer-funded development work could total approximately US$35–40 million over the next 5–7 years, with minimal incremental costs to MustGrow aside from supplying product for testing.
Positive
- First Bayer milestone payment received under 2023 license and collaboration deal
- Estimated combined value of upfront, milestones and development work of US$35–40 million over 5–7 years
- Bayer funds and conducts regulatory and market development work in EMEA territory
- MustGrow expects minimal incremental costs beyond supplying product for testing
- Potential future revenue streams from royalties and manufacturing sales fees upon commercial sales
- MustGrow reports approximately 70.4 million basic and 91.9 million fully diluted shares outstanding
Negative
- Future milestone payments and development value are estimates and not precisely knowable
- Agreement can be terminated, and payment milestones may not be achieved
- There is explicit risk that commercial sales may never materialize, limiting royalties and fees
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Bayer AG has paid MustGrow the first development milestone payment.
- The MustGrow / Bayer AG License and Collaboration Agreement, signed in December 2023, covers soil applications of MustGrow's mustard-based biocontrol technologies in Europe, Middle East and Africa.
Saskatoon, Saskatchewan--(Newsfile Corp. - August 21, 2026) - MustGrow Biologics Corp. (TSXV: MGRO) (OTCQB: MGROF) (FSE: 0C0) ("MustGrow") is pleased to announce that it has received the first milestone payment from Bayer AG (BAYN) ("Bayer"), which was payable under the License and Collaboration Agreement (the "Agreement") entered into in December 2023.
Under the terms of the Agreement, Bayer has access to MustGrow's mustard-based biocontrol technologies covering soil applications in Europe, Middle East and Africa ("Bayer Territory"). This first milestone payment was linked to technical product development milestones. Going forward, potential additional milestone payments payable to MustGrow are linked to additional achievements. Upon commencement of commercial sales, if any, MustGrow will also be entitled to fees from royalties and manufacturing sales. Unless terminated earlier as provided in the Agreement, the term of the Agreement shall continue until the expiration of all intellectual property licensed to Bayer under the Agreement.
Under the Agreement, Bayer is responsible for regulatory and market development work (the "Development Work") within the Bayer Territory in the respective field of use necessary to commercialize MustGrow's mustard-based biocontrol technologies, including the development of the formulated product, conducting relevant regulatory data studies for regulatory submissions, filing regulatory submissions, registration with relevant regulatory authorities, and support, marketing, and commercial sales activities. MustGrow estimates that the value of the upfront, milestone payments and Development Work could approximate US
"Growers require new sustainable, effective and affordable solutions to meet their needs in the future. Growing the toolbox, complementing existing technologies and introducing new possibilities is critical to address tomorrow's challenges in the fields," said Ralf Glaubitz, Head of Crop Protection Product Team Biologicals at Bayer's Crop Science division. "For us, a strong network and partners like MustGrow are key to accelerate the development of innovative biological solutions to broaden the toolbox and to bring the necessary crop protection innovations one step closer to where they are needed."
"Receiving this first milestone payment from Bayer under the Agreement marks another significant validation for MustGrow," remarked Corey Giasson, President & CEO of MustGrow. "Bayer is a global leader in crop science and sustainable agriculture, and has been an excellent partner for MustGrow in Europe, the Middle East, and Africa. This first milestone payment from Bayer continues to validate the need for sustainable biological technologies in the agriculture market and the efficacy of our biocontrol technology, TerraMG™."
About MustGrow
MustGrow Biologics Corp. is a provider of innovative biological and regenerative agriculture solutions designed to support sustainable farming. The Company's technology is centered on harnessing the natural defense mechanisms and organic compounds found in mustard seed and formulating them into organic biofertility, biostimulant, and biocontrol products. These solutions are designed to protect soil health and the soil microbiome, support plant health, and contribute to global food security through more sustainable agricultural practices. In the United States, MustGrow's flagship biofertility product, TerraSanteT™, is registered, organically certified, and commercially sold in key agricultural states, including California. Outside of North America, MustGrow is focused on collaborating with leading global agriculture companies, such as Bayer AG in Europe, the Middle East, and Africa, to commercialize its wholly owned proprietary products and technologies. The Company is dedicated to driving shareholder value through the commercialization and expansion of its intellectual property portfolio, which includes approximately 110 issued and pending patents. MustGrow is publicly traded on the TSX Venture Exchange under the symbol MGRO and has approximately 70.4 million common shares issued and outstanding, and approximately 91.9 million shares on a fully diluted basis.
For further details, please visit www.mustgrow.ca.
Contact Information
Corey Giasson Director & CEO
Phone: +1-306-668-2652
info@mustgrow.ca
MustGrow Forward-Looking Statements
Certain statements included in this news release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may affect the results, performance or achievements of MustGrow.
Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "occur" or "be achieved". Forward-looking statements in this news release are subject to a number of risks and uncertainties, including but not limited to, the risk of termination of the Agreement, the risk failure to meet the payment milestones under the Agreement, and the risk that commercial sales never materialize, that may cause the actual results of MustGrow to differ materially from those discussed in such forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, MustGrow. Important factors that could cause MustGrow's actual results and financial condition to differ materially from those indicated in the forward-looking statements include: those risks described in more detail in MustGrow's annual information form for the year ended December 31, 2025 and other continuous disclosure documents filed by MustGrow with the applicable securities regulatory authorities which are available on SEDAR+ at www.sedarplus.ca. Readers are referred to such documents for more detailed information about MustGrow, which is subject to the qualifications, assumptions and notes set forth therein.
Neither the TSXV, nor their Regulation Services Provider (as that term is defined in the policies of the TSXV), nor the OTC Markets has approved the contents of this release or accepts responsibility for the adequacy or accuracy of this release.
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