In a recent Q&A with Proactive, MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) CEO Corey Giasson shared insights into the company's transformative acquisition of NexusBio Ag assets from Univar Solutions. The deal brings a seasoned sales and marketing team, an established product line in the biologics and regenerative agriculture space, and a significant revenue stream that propels MustGrow from pre-revenue status.
Giasson highlighted the strategic synergies between the two entities, plans for market expansion into the U.S., and a roadmap for 2025 that includes integrating NexusBio, growing proprietary product sales, and strengthening global partnerships. This milestone positions MustGrow for accelerated growth and deeper market penetration in the agricultural sector.
Proactive: You've wrapped up the acquisition of NexusBio. Can you tell us more about what you've acquired?
Corey Giasson: We're excited to announce the acquisition of NexusBio Ag assets from Univar Solutions. This is a significant milestone for us. NexusBio comes with a sales and marketing team and an existing product line currently sold in the western Canadian agricultural market. Their portfolio includes biologics, biostimulants, and foliar products, all of which align with our focus on regenerative agriculture.
For us, this acquisition is transformative. It shifts us from being a pre-revenue company to having substantial revenue streams. NexusBio's products complement our own proprietary technologies, reinforcing our presence in the natural and biological agricultural space.
Do you see cost synergies between MustGrow and NexusBio?
Absolutely. NexusBio is now a division of MustGrow, and there will be cost synergies over time. Their sales team, which has strong relationships with farmers and retailers in western and eastern Canada, will also distribute our products, like MG, in these markets. By leveraging their established network, we can keep distribution costs in-house while expanding our reach.
You’ve mentioned plans to expand into the United States. Can you elaborate?
Yes, that's on our roadmap. The US represents a significant opportunity. One challenge biological companies often face is access to effective sales channels. These products require a personal touch, educating farmers and retailers on their use and benefits. By building these relationships, we can sell not only our own products but also third-party products, creating a more robust market presence.
Are you ready to hit the ground running?
We already are! The sales channel is being prepared for the upcoming spring season. Closing this deal at the end of 2024 has positioned us well to hit the ground running in 2025.
Can you walk us through the terms of the agreement?
We’ll pay about $1.6 million for inventory, capital assets, and equipment. Additionally, there’s a small fee to Univar. These payments are deferred for about six months. On top of that, there will be success fees payable in 2025 and 2026.
What’s ahead for MustGrow Biologics in 2025?
Integration is our immediate focus. NexusBio's operations and sales will continue as they are, but we aim to grow that division’s revenue. For MustGrow as a whole, we’re building up the US market for our proprietary product, Terra Sante, and strengthening our partnership with Bayer in Europe, the Middle East, and Africa. The addition of NexusBio expands our capabilities and supports our growth strategy, including eventual expansion into the US.
Quotes have been lightly edited for style and clarity