MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) said it has achieved a significant milestone with the successful initial commercial run-rate production of its mustard plant-based biocontrol liquid.
The production was carried out through a contract manufacturer, validating MustGrow's strategy of utilizing third-party facilities instead of constructing its own production facilities.
The continuous production run-rate of the biocontrol liquid reached an impressive level, exceeding 5,000 liters per day. This production rate is estimated to generate approximately US$25 million in annual grower-level revenue. Additionally, the production process yielded a high protein byproduct ingredient for animal feed, eliminating any residual waste.
In a statement, Corey Giasson, CEO of MustGrow, expressed the importance of this achievement, commenting: "This is a key transition for MustGrow, now able to complete our first commercial-level production without needing to build our own capital-intensive facility. We are now confident that we will be capable of producing commercially-scalable quantities of TerraSante and TerraMG in preparation for initial registration approvals."
The milestone not only demonstrates a successful and low-risk continuous-flow process but also mitigates commercialization risk for MustGrow. By utilizing a third-party contract manufacturer, the company reduces risks associated with its soil amendment and biofertility technologies, as well as its biocontrol and postharvest food preservation solutions.
MustGrow has been actively collaborating with global partners, including Janssen PMP, Bayer, Sumitomo Corporation, and NexusBioAg, to develop its organic solutions based on mustard plants. These solutions aim to replace harmful synthetic chemicals in various industries, ranging from preplant soil treatment and weed control to postharvest disease control and food preservation.
With over 150 independent tests validating MustGrow's safe and effective approach to crop protection and yield enhancements, the company is now pursuing regulatory approvals for its patented liquid products. These products can be applied through different methods such as injection, standard drip, or spray equipment, offering improved functionality and performance features.
MustGrow's progress marks a significant step toward sustainable agriculture and protecting the global food supply, aligning with the company's mission to help farmers feed the world using organic biocontrol and soil amendment products derived from the mustard plant's natural defense mechanism and organic materials.
Contact the author at jon.hopkins@proactiveinvestors.com