Bioceres Crop Solutions Corp announced that it has entered into definitive agreements for the acquisition of the remaining 50% ownership interest in Verdeca LLC (“Verdeca”) as well as strategic Intellectual Property assets related to soybean and wheat from Arcadia Biosciences Inc.
Bioceres has acquired from Arcadia the remaining ownership interest in Verdeca, a joint venture formed by the two companies in 2012 to develop second generation biotechnologies for soybean and to globally commercialize HB4 Soy technology. Having assumed full control of HB4 Soy, Bioceres plans to further accelerate the commercialization of this technology by increasing the number of related breeding collaborations and go-to-market partnerships in current as well as new geographies.
Full ownership also enables the Company to capture significantly more of HB4 Soy’s underlying economic value as revenues from this technology are generated. As part of the transaction, Bioceres has also gained full access and control of Verdeca´s vetted soybean library of gene-edited materials used to develop new quality and productivity, as well as exclusive rights to all Arcadia technologies that are applicable to soybean.
Through this transaction Bioceres has also acquired rights to Arcadia’s quality wheat traits and the related Good Wheat brand for Latin America.
The complementary portfolio of genome-edited materials being licensed includes wheat varieties that produce flour with 65% less gluten, ten times the dietary fiber content of conventional wheat flours, and oxidative stability, which extends the shelf life of whole flours and food products produced with these flours.
Further, from the standpoint of consumers, these flours produce breads and other foods that are substantially equivalent in taste and all other aspects to conventional wheat. It should be noted that some of the rights being acquired by Bioceres are subject to clearances by third parties.
In consideration for the acquisition of the above-mentioned rights and assets, Bioceres will pay Arcadia at the closing of the transaction $5 million in cash and $15 million.