Calyxt Announces Sale of Entire 2020 Grain Production to ADM
December 14 2020 - 8:31AM
Business Wire
Total Cumulative Sales to ADM of Over 4 Million
Bushels
Agreement is Key Step in Calyxt’s Transition to
Advanced Go-To-Market Strategies
Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company,
announced today that it has contracted to sell all 2020 grain
production of its high oleic soybean to ADM (NYSE: ADM), a global
leader in human and animal nutrition and the world’s premier
agricultural origination and processing company headquartered in
Chicago. The transaction is a key step in Calyxt’s 2020 transition
to an advanced go-to-market strategy focused on providing
plant-based innovations. Sales began in Q3 2020 and will continue
through late 2021.
Calyxt’s high oleic soybean was launched in 2019 as the first
commercially approved gene-edited food in the United States. ADM
has contracted to purchase all of Calyxt’s high oleic soybean
grain, following an initial purchase earlier in the year. The total
purchases represent approximately four million bushels of high
oleic soybean grain. ADM is responsible to crush the grain and will
market and sell the resulting oil and meal.
“This agreement with ADM is yet another key milestone in
monetizing our proprietary gene-editing technology and bringing our
innovations to market,” said Jim Blome, CEO of Calyxt. “This is an
important step in the advancement of our strategy and frees
resources and capital within Calyxt, allowing our talented team to
focus on growing the business through licensing our proprietary
technology, pursuing product development partnerships and seed sale
arrangements.”
“Our five new high oleic seed varieties introduced in 2020
underscores the progress we’ve made in expanding our offerings,”
said Vince Restucci, vice president of agronomy services. “Our high
oleic soybean seed and grain products are well positioned to
address the increase in market and consumer demand for premium
vegetable oil.”
“At ADM, we’re continually looking for ways to create more value
for customers, and that’s exactly what we’re doing by extending our
high-oleic soybean oil offerings with this new agreement with
Calyxt,” said Charlie Morris, director of customer portfolio
management. “We’re seeing more and more customers asking for
high-oleic products, and we’re committed to leading in this
value-added space. We appreciate the great relationship with
Calyxt, and we’re excited to expand our portfolio to meet the
growing demand of our food customers.”
About ADM
At ADM, we unlock the power of nature to provide access to
nutrition worldwide. With industry-advancing innovations, a
complete portfolio of ingredients and solutions to meet any taste,
and a commitment to sustainability, we give customers an edge in
solving the nutritional challenges of today and tomorrow. We’re a
global leader in human and animal nutrition and the world’s premier
agricultural origination and processing company. Our breadth,
depth, insights, facilities and logistical expertise give us
unparalleled capabilities to meet needs for food, beverages, health
and wellness, and more. From the seed of the idea to the outcome of
the solution, we enrich the quality of life the world over. Learn
more at www.adm.com.
About Calyxt
Calyxt (NASDAQ: CLXT), based in Roseville, Minnesota, is a
technology company with a mission to deliver plant-based
innovations for a better world. Founded in 2010, Calyxt uses its
proprietary TALEN® gene editing technology to work with world-class
partners via technology licensing, product development, and seed
sale arrangements to revolutionize the way the world uses plants to
solve problems. For further information, please visit our website
at www.calyxt.com.
Forward-Looking Statements
We have made these forward-looking statements in reliance on the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. In some cases, you can identify these statements by
forward-looking words such as “anticipates,” “believes,”
“continue,” “estimates,” “expects,” “targets,” “intends,” “may,”
“might,” “plans,” “potential,” “predicts,” “projects,” “should,”
“will,” or the negative of these terms and other similar
terminology. Forward-looking statements in this press release
include statements about the potential impact of the COVID-19
impact on our business and operating results; our future financial
performance; product pipeline and development; our business model
and strategies for commercialization and sales of commercial
products; regulatory progression; potential collaborations,
partnerships and licensing arrangements and their contribution to
our financial results, cash usage, and growth strategies; and
anticipated trends in our business. These and other forward-looking
statements are predictions and projections about future events and
trends based on our current expectations, objectives and intentions
and premised on current assumptions. Our actual results, level of
activity, performance, or achievements could be materially
different than those expressed, implied, or anticipated by
forward-looking statements due to a variety of factors, including,
but not limited to: the severity and duration of the evolving
COVID-19 pandemic and the resulting impact on macro-economic
conditions; the impact of increased competition; disruptions at our
key facilities; changes in customer preferences and market
acceptance of our products; competition for collaboration partners
and licensees and the successful execution of collaborations and
licensing agreements; the impact of adverse events during
development, including unsuccessful field trials or disruptions in
seed production; the impact of improper handling of our product
candidates by unaffiliated third parties during development, such
as the improper aerial spraying of our high fiber wheat product
candidate; failures by third-party contractors; inaccurate demand
forecasting; the effectiveness of commercialization efforts by
commercial partners or licensees; our ability to make grain sales
on terms acceptable to us; the timing of our grain sales; our
ability to collect accounts receivable; disruptions to supply
chains, including transportation and storage functions; commodity
price conditions; the impact of changes or increases in oversight
and regulation; disputes or challenges regarding intellectual
property; proliferation and continuous evolution of new
technologies; management changes; dislocations in the capital
markets; and other important factors discussed under the caption
entitled “Risk Factors” in our filings with the Securities and
Exchange Commission (SEC), including our Annual Report on Form 10-K
for the year ended December 31, 2019, which was filed with the SEC
on March 5, 2020 (our Annual Report) and our subsequent reports on
Forms 10-Q (including under the caption entitled “Risk Factors” in
Part II, Item 1A of this Quarterly Report) and 8-K.
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version on businesswire.com: https://www.businesswire.com/news/home/20201214005140/en/
Calyxt Media Contact: Trina Lundblad, Director of
Corporate Communications (612) 790-0514 media@calyxt.com
Calyxt Investor Relations Contact: Chris Tyson, Managing
Director MZ Group – MZ North America (949) 491-8235 CLXT@mzgroup.us
www.mzgroup.us
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