Affinor Growers and Freshbay entered into an amendment agreement to capture their mutual intentions for the Company to grant to Freshbay, and Freshbay to accept from the Company, the exclusive right and license to use and exploit a certain patent, know-how associated therewith, and certain industrial designs held by the Company in accordance with the terms and conditions of the Amendment.
Pursuant to the terms and conditions of the Amendment and as consideration for the grant of the license, Freshbay has agreed to pay the Company CAD $33,500,000 as follows:
i. CAD $21,000,000 on such date that Freshbay receives any funding from an institutional investor in connection with the Project Solution (as defined in the Agricultural Technology Agreement). Notwithstanding the foregoing, full Funding Instalment is due and payable on a date that is six (6) months from the effective date of the Amendment; and
ii. CAD $12,500,000 on such date that is the earliest of (i) six (6) months from the date of the first shipment of any strawberries produced in connection with the Licensed IP, or (ii) June 16, 2025.
Nick Brusatore, the Company's Chief Executive Officer, stated as follows: "I am eagerly anticipating the exclusive collaboration with Freshbay in Canada, utilizing our safeguarded intellectual property. This strategic partnership will not only strengthen the ties between Capital Groups and Freshbay but also facilitate extensive distribution networks. This IP sale marks the inception of a precedent that will pave the way for Affinor's IP to expand its global reach and sell more patents worldwide".
For more information:
Affinor Growers
affinorgrowers.com