Yield10 Bioscience signed a Memorandum of Understanding (MoU) and license agreement with Nuseed Nutritional US Inc., the seed technologies platform of Nufarm, granting Nufarm a commercial license to certain omega-3 intellectual property assets, materials and know-how for producing oil in camelina.
Under the license agreement, Nufarm will pay Yield10 up to USD 5 million. Nufarm and Yield10 have additionally agreed to immediately negotiate exclusively with each other for the sale of Yield10’s remaining assets to Nufarm.
Producing omega-3 fatty acids in camelina may represent a way to enable a predictable, land-based supply of high-quality omega-3 oils to meet the growing global demand for eicosatetraenoic acid and docosahexaenoic acid. Nuseed Nutritional already produces plant-based oil products, Aquaterra® for aquafeeds and Nutriterra® for human consumption, but from Nuseed omega-3 canola.
“Yield10 camelina assets and know-how in both omega-3 and bioenergy sectors have a unique fit with Nufarm’s Value Beyond Yield® and platform strategies,” said Greg Hunt, CEO and group executive of Nufarm. “While the program still requires further development time and investment before achieving revenue, it offers a broadened portfolio of solutions for our customers both at the farm gate and with end-user customers.”
“We believe that the transition of our omega-3 camelina program to Nufarm is in the best interest of our shareholders, business partners, and employees,” said Oliver Peoples, president and CEO of Yield10 Bioscience. “We believe that the initial payment will allow us to manage key biological assets and regulatory requirements while providing us with the cash runway to secure the shareholder vote. We anticipate collaborating closely with the Nufarm team to finalize the asset purchase agreement and complete the shareholder vote. We believe that this will ensure a smooth transition and enable Nufarm to expedite the commercialization of plant-based omega-3 oils produced using camelina."
Rothamsted Research recently granted Yield10 Bioscience an exclusive license for the land-based production of omega-3 oils used in aquafeed, pet food and human nutrition.
