If you are a regular Insider, you will know I am a big fan of Australian technology companies and Calix is now starting to show it is yet another one to be proud of.
They have just signed their first commercial deal and according to CEO Phil Hodgson, it could be the first of many.
The company's core technology is a kiln-like processing system that is used to develop more environmentally friendly solutions for advanced batteries, crop protection, aquaculture, wastewater, and carbon reduction.
But as with the 10 year distribution licence agreement they have just signed, it is not just another environmentally friendly product. It allows agricultural producers to have higher yields and to eliminate, or dramatically reduce, pesticides and fungicides.
Calix’s first distribution licence agreement is for its bioactive magnesium hydroxide (known internally as BOOSTER-Mag) for agriculture and has been executed with Afepasa (Azufrera y Fertilizantes Pallarés, SAU.
It covers Europe, the Middle East and Africa for a period of 10 years.
The key terms of the license are:
1. Territory: Exclusive License to sell its bioactive magnesium hydroxide in Europe, Africa and the Middle East, subject to performance hurdles
2. Performance Hurdles: Minimum sales volumes: Year 1 and 2: 150kL, Year 3: 100kL, Year 4: 200 kL, Year 5+: 400kL
3. Intellectual Property (IP): Any new / developed IP to be 100% owned by Calix Calix’s safe and sustainable bioactive magnesium hydroxide materials have been under development for agricultural applications for over four years, with extensive testing over consecutive years on a variety of crops in Australia, Asia and Europe.
Through these thorough testing processes, Calix has demonstrated that grower productivity, safety and sustainability can be substantially enhanced when using BOOSTER-Mag. BOOSTERMag targets a total addressable chemical crop.
I spoke with CEO Phil Hodgson about the deal and the future for the Australian tech company.
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