Newport Beach Calif. — AMVAC, an American Vanguard company (NYSE: AVD), announced that it has closed a strategic license and investment agreement with Clean Seed Capital Group Ltd. (TSX-V:CSX).
American Vanguard Corp. is a diversified specialty and agricultural products company that develops and markets products for crop protection management and turf and ornamentals management. Clean Seed’s SMART Seeder technologies utilize electronic metering and intuitive software control for row-by-row variable rate planting.
The relationship results in Clean Seed licensing to AMVAC certain intellectual property rights for an initial investment of US$2.5 million, 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 $2.5 million through the purchase of shares of Clean Seed stock, bringing the total AMVAC investment to $5 million.
AMVAC’s patented SIMPAS (Smart Integrated Multi-Product Prescription Application System) reportedly enables simultaneous, prescriptive application of multiple crop protection and nutritional inputs. It applies only what’s prescribed, where it’s needed. This precision application technology runs parallel with Clean Seed’s patented SMART Seeder and SMART Planter technologies, according to AMVAC’s press release.