MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF), a cutting-edge biotech company, is making waves in the agricultural technology sector with its unique focus on extracting compounds from mustard seed.
Led by CEO Corey Giasson, the company aims to harness the natural defense mechanism of the mustard plant to combat diseases and pests. With an eye on reducing reliance on synthetic chemicals and fertilizers, MustGrow Biologics is paving the way for the development of natural biologic-style pesticide alternatives.
Giasson is no stranger to agricultural technology, having grown up on a farm in Saskatchewan before embarking on his nearly 20-year career spanning agriculture, potash, oil and gas, mining, and real estate industries specifically in his home province of Saskatchewan.
“My family grew mustard back in the day on our farm, so I knew the properties of mustard,” Giasson told Proactive.
There’s a more personal reason for his passion for sustainable, organic farming.
“When I came across this technology, I had two young kids that eat strawberries, and saw some of the heinous chemistries used on strawberries, such as methyl bromide. These have been banned and are slowly being phased out. When I was introduced to the predecessor company that had the first generation mustard-based technology, I thought it was a great idea to use these molecules to treat the diseases and pests that attack strawberries.”
Unlocking the power of mustard
Mustard is part of the Brassica family of plants, a group of plants that includes various edible and ornamental plants, such as mustard, broccoli, cauliflower, cabbage, kale, brussels sprouts, radishes, and turnips, among others. These plants are characterized by their four-petal flowers and distinctive seed pods, which often resemble a cross shape, giving them the alternate name "cruciferous." Brassica plants are widely cultivated and consumed worldwide for their nutritional value and culinary versatility.
Importantly, the plants also contain natural molecules that provide a natural defense mechanism for the plant to protect it from diseases and pests. The mustard plant can generate a compound known as Allyl isothiocyanate (AITC). Responsible for the characteristic spiciness found in mustard, AITC is also that defense mechanism against diseases and pests. By extracting these compounds, MustGrow is able to develop natural biologic-style pesticide products.
The company’s proprietary technology centres around the extraction and commercialization of the mustard plant's natural compounds by focusing on formulating these extracts into liquid and dry powder solutions.
“We’re a tech company,” Giasson explains. “We own the IP around this technology and partner with large players worldwide who have the know-how and R&D teams to test the technology in different applications and geographies”
MustGrow’s partners are familiar and include some of the biggest players in agricultural technology, such as Bayer, Sumitomo Corporation, and Janssen, a division of J&J. The development projects vary from company to company: MustGrow and Sumitomo have an exclusive evaluation agreement in the Americas for preplant soil fumigation, bioherbicide, postharvest and food preservation for potatoes and bananas. (Sumitomo is funding and driving all field development, including toxicology, safety, efficacy, and regulatory work necessary for commercialization.) The company has a similar agreement with Bayer in Europe, Asia Pacific, Middle East and Africa (minus postharvest bananas), while its global agreement with Janssen covers postharvest storage preservation of fruits and vegetables, excluding grains, potatoes, bananas and shipping container fumigation.
Giasson is hopeful that the companies will use their extensive knowledge in the field to help MustGrow get its product registered globally. This strategy allows MustGrow to retain ownership of the technology while collaborating with established players to achieve widespread commercialization.
Revolutionizing agriculture through technology
The global pesticide industry, valued at approximately $65 billion, is witnessing a shift toward natural biologic products. As certain chemistries face bans and deregistration, natural products will start to gain prominence.
What’s more, the fertilizer market, estimated to be a nearly $200 billion industry, demands sustainable solutions due to regulatory pressure and the increasing need for food production.
MustGrow Biologics aims to help meet this demand with its natural and environmentally friendly technologies.
“What we’re bringing to the table is a natural biologic, or biopesticide for example,” Giasson said. “The biopesticide market is growing at a significant rate because some of the chemical-based pesticides must be replaced by natural products.”
Regulatory agencies around the world are restricting the use of synthetic chemistries, but with a massively growing population, food scarcity is a real concern. Mexico is phasing out glyphosate, a widely used herbicide, and France has banned metam sodium, a probable human carcinogen.
“Natural products are really needed because some of these markets are under pressure to produce more with fewer inputs, because government regulatory agencies want to reduce chemical and nitrogen use,” Giasson said. “The fact of the matter is, the population is growing and we're going to need more food in the future.”
Scaling up for the future
The scalability of MustGrow Biologics' technology is a crucial factor in addressing the global food supply challenge. The company requires only a small amount of mustard seed to produce a significant quantity of extracts, enabling widespread application of their products. Organic farming, in particular, presents a promising market for the company, as synthetic chemicals and fertilizers are prohibited, making MustGrow's organic-friendly technology an attractive solution.
To get there, MustGrow boasts a strong cash position, providing a runway for the next couple of years. With registrations and certifications on the horizon, revenue generation is expected to commence within the next few years.
MustGrow’s pathway to revenue comes at a time when the global food chain is under increasing pressure to feed billions of people around the world. Adding to that pressure, more people are educating themselves on how their food is grown and produced, putting farmers under higher scrutiny for their agricultural practices.
“I grew up on a farm, and I’m really starting to see how people are now understanding that farmers need to use safe products for the food they’re growing,” Giasson said.
“Farmers are investing in natural, sustainable products and I think it’s really exciting. As the world needs to feed more and more people, we’re in the right space.”
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas