SYDNEY, AUSTRALIA: Bio-Gene Technology Limited (ASX: BGT) and STK Bio-Ag Technologies (STK) signed binding terms on a global collaboration partnership for the commercialisation of Bio-Gene’s Qcide product in crop protection and other market segments.

Bio-Gene and STK have allowed up to 90-days to complete the transaction documentation. As the Term Sheet is binding and the collaboration is in place, the transaction documents will incorporate the customary indemnities and warranties together with the finalisation of the development plan.

All other terms and conditions in the Term Sheet will be replicated in the final documents. The collaboration will continue while at least the USA EPA registration remains in place (reviewed by the EPA at least every 15 years from registration) or is terminated for lack of performance by either party. In the unlikely event that the transaction documents are not completed, the collaboration will continue on the basis of the terms outlined in the Term Sheet.

STK applies advanced botanical science and bio-ag technology in the development and commercialisation of botanical crop protection solutions for growers worldwide and has operations and product registrations in more than 30 countries.

Bio-Gene and STK entered into a confidential Material Transfer Agreement in 2021 that facilitated STK’s internal assessment of Qcide technology across a range of potential applications. Those studies mainly focused on crop protection applications but are also relevant for professional turf and ornamental markets and could be extrapolated into aquaculture, where STK’s Aqua Division operates.

Commenting on the execution of the term sheet, Bio-Gene CEO, Richard Jagger said: “STK has been working intensively with our technology for some time now, and the data they have obtained give both companies great confidence in the applicability for STK’s target markets. Not only does STK see the commercial potential for our technology, but they see the benefit in collaborating with Bio-Gene to accelerate the registration process; to invest in an additional production base; and to explore mutually beneficial marketing arrangements.”

Under the proposed agreement, STK intends to fully fund registration costs relating to the Qcide Active Ingredient.

This will include required efficacy and toxicology studies, field trials, the generation of manufacturing data and preparation of the regulatory submission. While STK would have ownership of the resulting registration, Bio-Gene will continue to own the IP relating to Qcide.

Bio-Gene has unlimited access to the registration and can work with other commercial partners to develop and commercialise products in all market segments, including those licenced to STK on a non-exclusive basis.

The proposed collaboration will also see STK utilise its existing expertise and capabilities in plantations and extraction technology to develop a secondary manufacturing and supply source for Qcide.

Both companies have agreed to assess the potential for Bio-Gene to be appointed as a marketing and sales agent for STK products (products based on Qcide and other STK products) in Australia and New Zealand.