MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) has “added another arrow to its NexusBioAg product quiver,” with the signing of a distribution agreement with Phospholutions, analysts at Noble Capital Markets believe.
The new agreement broadens NexusBioAg’s offerings with the company to sell Phospholutions' RhizoSorb product in Canada.
The analysts noted that RhizoSorb been through over 500 trials, including over 400 field trials.
“According to Phospholutions, RhizoSorb increases phosphorus efficiency by 50%, with potential savings of up to US$20 per acre by optimizing fertilizer inputs and reducing costs without sacrificing yield,” the analysts wrote.
“In addition to economic benefits, RhizoSorb delivers meaningful environmental advantages, reducing CO2 emissions by 45.2%, phosphorus runoff by 78%, and leaching by 84% compared to conventional MAP fertilizer.”
Canada is a key phosphate market with more than 94.5 million acres of crop production dependent on phosphate, they added. “Phosphorus is the second most used nutrient in global food production,” they wrote.
The analysts repeated their ‘Market Perform’ rating on MustGrow, noting that the NexusBioAg acquisition provides MustGrow with an experienced sales team that can be leveraged for NexusBioAg's and MustGrow's products.
“We believe substantial opportunity exists for natural alternatives in the company's targeted end markets, such as preplant soil fumigation, bioherbicides, postharvest food preservation, soil amendment, and biofertility,” Noble’s analysts wrote.