The relationship results in Clean Seed licensing to AMVAC certain intellectual property rights for an initial investment of US$2,500,000, plus an undisclosed royalty that will be payable to Clean Seed by AMVAC in conjunction with AMVAC’s future SIMPAS™ hardware sales. AMVAC will invest an additional US$2,500,000 through the purchase of shares of Clean Seed stock, bringing the total AMVAC investment to US$5,000,000.
“AMVAC is investing in this strategic technology relationship in order to leverage the superior prescriptive at-plant application technology of both companies. We believe our organizations are truly symbiotic,” said Chief Operating Officer Dr. Bob Trogele. “By combining Clean Seed’s leading-edge ability to prescriptively plant and apply high-dose rate crop inputs like N, P, and K, with AMVAC’s low-dose rate SIMPAS application technology, farmers will realize prescriptive application capabilities that simply are not presently available.”
AMVAC’s patented SIMPAS (Smart Integrated Multi-Product Prescription Application System) enables simultaneous, prescriptive application of multiple crop protection and nutritional inputs and runs parallel with Clean Seed’s patented SMART Seeder™ and SMART Planter™ technologies.