Yield10, Nufarm sign MOU for sale of camelina assets
Yield10 Bioscience Inc. announced July 17 that the company has signed a memorandum of understanding (MOU) and license agreement with Nuseed Nutritional US Inc.—the seed technologies platform of Nufarm Ltd.—granting Nufarm a commercial license to certain omega-3 intellectual-property assets, materials and know-how for producing oil in camelina.
Under the license agreement, Nufarm will pay Yield10 up to $5 million.
Nufarm and Yield10 have additionally agreed to immediately negotiate exclusively with each other for the sale of Yield10’s remaining assets to Nufarm.
The asset sale will require an affirmative vote from the shareholders of Yield10, and a special meeting of shareholders will be convened to seek that vote following execution of the asset-purchase agreement.
Producing omega-3 fatty acids in camelina may represent a way to enable a predictable, land-based supply of high-quality omega-3 oils to meet the growing global demand for eicosatetraenoic acid (EPA) and docosahexaenoic acid (DHA).
Currently, the primary source of EPA and DHA remains ocean-caught fish, where omega-3 oil produced from anchovy harvest is the industry benchmark.
Over the past few years, there has been increasing pressure on the supply of omega-3 oil due to overfishing.
“Yield10 camelina assets and know-how in both omega 3 and bioenergy sectors have a unique fit with Nufarm’s Value Beyond Yield® and platform strategies,” said Greg Hunt, CEO and group executive of Nufarm. “While the program still requires further development time and investment before achieving revenue, it offers a broadened portfolio of solutions for our customers both at the farmgate and with end-use customers.”
Oliver Peoples, president and CEO of Yield10 Bioscience, added, “We believe that the transition of our omega-3 camelina program to Nufarm is in the best interest of our shareholders, business partners and employees. We believe that the initial payment will allow us to manage key biological assets and regulatory requirements while providing us with the cash runway to secure the shareholder vote. We anticipate collaborating closely with the Nufarm team to finalize the asset-purchase agreement and complete the shareholder vote. We believe that this will ensure a smooth transition and enable Nufarm to expedite the commercialization of plant-based omega-3 oils produced using camelina.”
