Vancouver, British Columbia, Canada
February 20, 2020
Clean Seed Capital Group Ltd. (“Clean Seed” or the “Company”) (TSX-V: CSX) is pleased to announce that it has entered into a long-term license, distribution and collaboration agreement with CISA Ind. e Com. Eireli (“J.Assy”) for the global supply of its J.Assy Singulation Meter and related technologies.
Clean Seed has been collaborating with J Assy to adapt, develop and prepare the Singulation Meter technology for Clean Seed. To integrate the J.Assy meter into its Seed Sync™ software platform, Clean Seed has developed a proprietary motor drive and control system, the combination of which will provide unparalleled flexibility to the farmer. The J.Assy Singulation Meter will dovetail with Clean Seed’s variable rate volumetric metering cluster as a feature of the new SMART Seeder MAX-S™ being introduced in 2020 by the Clean Seed Norwood Joint Venture.
The J.Assy Singulation Meter will dovetail with Clean Seed’s variable rate volumetric metering cluster as a feature of the new SMART Seeder MAX-S™ being introduced in 2020 by the Clean Seed Norwood Joint Venture.
Under the OEM supply portion of the agreement, J.Assy will manufacture and supply adapted Clean Seed branded singulation meters, seed disks and related components. This arrangement will provide Clean Seed with singulation solutions for all major crops in North America including canola, corn and soybean.
J.Assy is a respected inventor of proven technology solutions for agribusiness, most notably its Titanium and Selenium meters as well as their wireless Visium blockage sensors.
Graeme Lempriere - Chairman CEO states “J.Assy is one of Brazil’s largest investors in their respective sector, with a remarkable culture for innovation, represented by an impressive patent portfolio and a strong market presence in Brazil, South America, Europe and Africa. The nature of our partnership is particularly compatible and mutually beneficial on multiple levels. In addition to our current roll out plans, Clean Seed will be working closely with J.Assy to bring our SMART Technologies to Brazil as our collaboration and partnership progresses.”
Jose Assy – Founder and President of J.Assy states “We are excited to partner with Clean Seed Capital on their disruptive suite of technologies. We look forward to introducing our collective efforts in North America, here in Brazil and beyond. Our dynamic R&D teams are a good fit for both parties and we look forward to the future.”
Related to closing the Company’s joint venture with Norwood and to finance its contributions for introducing the SMART Seeder MAX-S™ this spring, the Company has raised $1,277,500 through a non-brokered private placement of 5,110,000 units of the Company (the "Units") at a price of $0.25 per Unit,(the "Offering"). The Company initiated the Offering in December 2019, but only recently closed the Offering upon the Norwood transaction being finalized and disclosed. Each Unit consists of one common share and one half common share purchase warrant (a “Unit Warrant"). Each Unit Warrant will entitle the holder to purchase one common share of the Company for a period of 12 months from the closing date of the Offering at a price of $0.50 per share. The Company did not incur any finder’s fees in connection with the Offering. The Company intends to use the proceeds of the Offering for its contribution in introducing the SMART Seeder MAX-S™, its related development activities and general working capital.
Certain participants in the Offering, who are investing a total of $1,045,000, may be considered “related parties” for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61- 101”). The Company is relying upon exemptions from the requirement to obtain a formal valuation and seek minority shareholder approval to the Offering on the basis that the fair market value of the participation by related parties is less than 25% of the Company’s current market capitalization.
Closing of the Offering is subject to approval of the TSX Venture Exchange (the “TSX-V”). All securities issued will be subject to a regulatory hold period of four months and a day in accordance with the rules and policies of the TSX-V and applicable Canadian securities laws, and such other further restrictions as may apply under foreign securities laws.
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