Agrinos receives purchase order to treat 1 million hectares of ...
Agrinos receives purchase order to treat 1 million hectares of ...
Agrinos receives purchase order to treat 1 million hectares of ...
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News release 2011-10-04<br />
<strong>Agrinos</strong> <strong>receives</strong> <strong>purchase</strong> <strong>order</strong> <strong>to</strong> <strong>treat</strong> 1 <strong>million</strong> <strong>hectares</strong> <strong>of</strong> Mexican<br />
agricultural land<br />
<strong>Agrinos</strong> announced 19 September 2011 that it was named as supplier <strong>to</strong> MasAgro, the ten year<br />
Mexican governmental program <strong>to</strong> improve agricultural performance on a national scale<br />
<strong>Agrinos</strong> announces <strong>to</strong>day that it has received its first binding <strong>purchase</strong> <strong>order</strong> under the<br />
MasAgro program for a volume <strong>of</strong> its High Yield Technology products sufficient <strong>to</strong> <strong>treat</strong> 1<br />
<strong>million</strong> <strong>hectares</strong> <strong>of</strong> land during the coming four months<br />
The binding <strong>purchase</strong> <strong>order</strong> is expected <strong>to</strong> provide approx USD 20 <strong>million</strong> in revenue which<br />
will be booked in the fourth quarter <strong>of</strong> 2011<br />
<strong>Agrinos</strong> announced on the 19 th <strong>of</strong> September 2011 that it had signed a “Letter <strong>of</strong> Intent” (LOI) with<br />
Mexico’s Ministry <strong>of</strong> Agriculture, Lives<strong>to</strong>ck, Rural Development, Fisheries and Food (SAGARPA)<br />
pertaining <strong>to</strong> the large scale use <strong>of</strong> its High Yield Technology (“HYT”) products within a newly formed<br />
agriculture subsidy program known as “MasAgro”. SAGARPA has initiated this ten year, national scale<br />
agricultural development program <strong>to</strong> increase maize and wheat productivity, obtain higher returns on the<br />
yields <strong>of</strong> these strategic crops and decrease the regional and global environmental impact associated<br />
with their cultivation.<br />
Today, <strong>Agrinos</strong> announces that it has received a binding <strong>purchase</strong> <strong>order</strong> from SAGARPA’s designated<br />
agent, Mex Agro Internacional S. A. de. C. V. This <strong>order</strong> specifies quantities <strong>of</strong> HYT products sufficient <strong>to</strong><br />
<strong>treat</strong> 1 <strong>million</strong> <strong>hectares</strong> <strong>of</strong> agricultural land participating in the MasAgro program. The deliveries <strong>of</strong> these<br />
products shall be made on a running basis over the coming four months through January, 2012.<br />
In addition, <strong>Agrinos</strong> has received a formal request for supplementary quantities <strong>of</strong> HYT products sufficient<br />
<strong>to</strong> <strong>treat</strong> up <strong>to</strong> an additional 1.9 <strong>million</strong> <strong>hectares</strong> <strong>of</strong> agricultural land. These supplementary quantities are in<br />
addition <strong>to</strong> and above the 2011 0.5 <strong>million</strong> <strong>to</strong>1.0 <strong>million</strong> hectare target expressed by SAGARPA in the<br />
LOI. The potential supply <strong>of</strong> additional quantities <strong>of</strong> HYT products beyond the original volume targets will<br />
be evaluated in the near future.<br />
“With this <strong>purchase</strong> <strong>order</strong>, the Mexican government and SAGARPA continue <strong>to</strong> demonstrate strong<br />
leadership in developing the productivity and sustainability <strong>of</strong> the Mexican agricultural sec<strong>to</strong>r. We are<br />
proud that <strong>Agrinos</strong>’ technology and expertise have been chosen and we look forward <strong>to</strong> strengthening our<br />
cooperation with the MasAgro program.” said Tom Einar Rysst-Jensen, <strong>Agrinos</strong>’ chief executive <strong>of</strong>ficer.<br />
He continued “I feel that this <strong>order</strong> marks a major miles<strong>to</strong>ne in the development <strong>of</strong> <strong>Agrinos</strong> as an industrial<br />
supplier <strong>to</strong> the agricultural sec<strong>to</strong>r and accelerates our ability <strong>to</strong> grow internationally.”<br />
In addition <strong>to</strong> specifying product delivery volumes for 2011, the LOI indicates SAGARPA’s intention <strong>to</strong><br />
increase the use <strong>of</strong> <strong>Agrinos</strong> products during 2012 and beyond. The indicated increase expands <strong>Agrinos</strong><br />
product use <strong>to</strong> between 7 <strong>million</strong> and 14 <strong>million</strong> <strong>hectares</strong> <strong>of</strong> agricultural land per year.<br />
Order placed after multi-season evaluation <strong>of</strong> agricultural technology providers<br />
<strong>Agrinos</strong>’ HYT products were invited by SAGARPA <strong>to</strong> participate in the MasAgro program following an<br />
internal, multi-season evaluation <strong>of</strong> sustainable agricultural technology providers. <strong>Agrinos</strong>’ products have<br />
been tested by commercial and academic institutions in multiple locations and agro-climatic conditions<br />
within Mexico.<br />
SAGARPA and <strong>Agrinos</strong> have worked <strong>to</strong>gether <strong>to</strong> define a cus<strong>to</strong>mized HYT product use pro<strong>to</strong>col suited <strong>to</strong><br />
the needs <strong>of</strong> farmers participating in the MasAgro program. <strong>Agrinos</strong> will train the technical outreach<br />
<strong>Agrinos</strong> AS, Org. Number: 993 853 631, Fornebuveien 1, N-1367, Norway<br />
Tel: +47 210 45 600, Fax: +47 215 47 418<br />
www.agrinos.com
program executed by SAGARPA <strong>to</strong> ensure the correct and effective use <strong>of</strong> HYT products, while<br />
SAGRPA’s technical outreach program will assist participating MasAgro farmers.<br />
At <strong>to</strong>day’s exchange rates, the binding <strong>purchase</strong> <strong>order</strong> is expected <strong>to</strong> result in approximately USD 20<br />
<strong>million</strong> in sales revenue for <strong>Agrinos</strong>, expected <strong>to</strong> be booked in the fourth quarter <strong>of</strong> 2011. Any further<br />
supplementary deliveries as specified above will be recognized as sales revenue in the first quarter <strong>of</strong><br />
2012.<br />
For more information please contact:<br />
Tom Einar Rysst-Jensen, CEO <strong>Agrinos</strong><br />
Cellular: +47 977 94 958<br />
E-mail: <strong>to</strong>m.rysst-jensen@agrinos.com<br />
Hellek Bråthen, CFO <strong>Agrinos</strong><br />
Cellular: +47 450 46 037<br />
E-mail: Hellek.Braathen@agrinos.com<br />
About <strong>Agrinos</strong><br />
<strong>Agrinos</strong> is a green technology company committed <strong>to</strong> improving the productivity and decreasing the<br />
environmental impact <strong>of</strong> modern agriculture. <strong>Agrinos</strong>’ line <strong>of</strong> High Yield Technology (“HYT”) products<br />
help farmers <strong>to</strong> practice pr<strong>of</strong>itable, high yield sustainable agriculture by providing increased crop<br />
productivity, improved efficiency <strong>of</strong> conventional fertilizer use and decreased environmental footprint.<br />
Certified organic and based on <strong>Agrinos</strong>’ proprietary technology, the HYT products provide these<br />
benefits by strengthening the soil-based microbial ecosystem, stimulating crop development at key points<br />
in the growth cycle and boosting natural plant resistance <strong>to</strong> pathogens and threats. With specific solutions<br />
for a variety <strong>of</strong> crop categories, the technology comprising the HYT products have demonstrated its value<br />
in more than 1500 trials in key agricultural regions worldwide.<br />
Founded in 2009, Oslo-headquartered <strong>Agrinos</strong> has grown <strong>to</strong> include <strong>of</strong>fices and operations in the USA,<br />
Mexico, Malaysia, Colombia, Indonesia, Brazil and the People’s Republic <strong>of</strong> China. <strong>Agrinos</strong> enjoys<br />
financial backing from a number <strong>of</strong> leading international inves<strong>to</strong>rs and a strong management team lead by<br />
its Chairman, Dr. Thorleif Enger.<br />
Supporting resources:<br />
<strong>Agrinos</strong> website: www.agrinos.com<br />
Disclaimer<br />
This announcement contains certain forward-looking statements relating <strong>to</strong> the business, financial<br />
performance and results <strong>of</strong> the Company and/or the industry in which it operates. Forward-looking<br />
statements concern future circumstances and results and other statements that are not his<strong>to</strong>rical facts,<br />
sometimes identified by the words “believes”, expects”, “predicts”, “intends”, “projects”, “plans”,<br />
“estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking<br />
statements contained in this announcement, including assumptions, opinions and views <strong>of</strong> the Company<br />
or cited from third party sources are solely opinions and forecasts which are subject <strong>to</strong> risks, uncertainties<br />
and other fac<strong>to</strong>rs that may cause actual events <strong>to</strong> differ materially from any anticipated development.<br />
Neither the Company, nor any <strong>of</strong> their parent or subsidiary undertakings or any such person’s <strong>of</strong>ficers or<br />
employees provides any assurance that the assumptions underlying such forward-looking statements are<br />
free from errors nor does any <strong>of</strong> them accept any responsibility for the future accuracy <strong>of</strong> the opinions<br />
expressed in this announcement or the actual occurrence <strong>of</strong> the forecasted developments. No obligation,<br />
except as required by law, is assumed <strong>to</strong> update any forward-looking statements or <strong>to</strong> conform these<br />
forward-looking statements <strong>to</strong> our actual results.<br />
<strong>Agrinos</strong> AS, Org. Number: 993 853 631, Fornebuveien 1, N-1367, Norway<br />
Tel: +47 210 45 600, Fax: +47 215 47 418<br />
www.agrinos.com