In April, the Burnaby, BC-based company signed a milestone US$5 million agreement with US-based AMVAC, an American Vanguard Company, to license its intellectual property related to its SMART Seeder and SMART Planter technologies for the US agricultural sector.
It is the first such license issued by the company since its inception, Clean Seed told shareholders Tuesday.
The deal propelled Clean Seed’s net income to C$2,090,575, a nearly C$5.8 million swing from the C$3.8 million loss it posted during FY2019. Other factors involved in the boost included reduced operating expenses and an increased amount of development costs that qualified for capitalization as intellectual property expenses, according to the firm.
During the fiscal year 2020, which ended June 30, Clean Seed continued the development of its SMART Seeder technology and the development of the prototype SMART Seeder MAX-S as part of the joint venture with Norwood Sales Inc.
Graeme Lempriere, Clean Seed’s CEO, called 2020 a “very progressive and productive year” for the company.
“The years of intensive development and strategic planning are beginning to pay off, positioning us well for our future,” Lempriere said in a statement accompanying the results.
“Our partnership with Norwood has proved to be extremely beneficial and I could not be happier with the outcomes to date. Our first license agreement sets the standard for additional parallel opportunities around the world, leveraging our strong intellectual property portfolio with other synergistic opportunities will remain a dovetailed approach to our future growth plans."
Lempriere added that the agreement with AMVAC “sets the standard” for more global opportunities by leveraging its intellectual property portfolio with other synergistic opportunities.
Clean Seed's SMART Seeder technologies are seeding tools that utilize sophisticated electronic metering and intuitive software control to put row-by-row variable rate technology at the forefront of agricultural innovation.
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