MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) announced it has signed a non-binding term sheet with Univar Solutions Canada Ltd to acquire crop nutrition company NexusBioAg.
The move aims to position MustGrow as a fully integrated provider of biological and regenerative agriculture solutions.
Once completed, NexusBioAg’s sales and marketing operations would merge with MustGrow’s existing product lines, bringing an experienced team with established relationships across the agriculture sector.
NexusBioAg’s portfolio and industry network are expected to drive growth, including anticipated new product lines in 2025 and MustGrow’s proprietary TerraMG product. The company highlighted potential synergies, including improved market access for product development and reduced distribution costs.
“This is an exciting opportunity to deliver technology-driven, innovative products to farmers in Canada and ultimately the United States,” said MustGrow CEO Corey Giasson.
"This synergistic acquisition would solidify MustGrow's position as a fully integrated biological and regenerative agriculture company, with an established in-licensed third-party product line, while laying the foundation for the commercialization of MustGrow's own innovative products,” he added.
The acquisition, subject to due diligence, regulatory approvals, and the execution of a definitive agreement, is expected to close around December 31, 2024.
Under the proposed terms, the deal will include a deferred cash payment and contingent payments in 2025 and 2026, subject to adjustments.