Pressure BioSciences, Inc.. (OTCQB: PBIO) (“PBI” or the “Company”), a leader in the development and sale of broadly enabling, pressure-based instruments, consumables, and platform technology solutions to the worldwide biotechnology, biotherapeutics, nutraceuticals, cosmetics, agriculture, and food & beverage industries, today announced it has finalized terms and executed a new letter of intent to purchase the assets of an internationally-based developer and supplier of organically natural, eco-friendly agrochemicals. This acquisition allows the Company to enter the agrochemical market with sought-after alternatives to synthetic pesticides and fertilizers serving the rapidly growing sectors of organic and environmentally sustainable agricultural production worldwide. The parties expect to complete definitive documents and to simultaneously sign and close the transaction within four weeks. Subsequently, the Company expects to initiate a series of announcements regarding the acquired assets, global distributorship arrangements, UST enhancement of key products, purchase order receipts/product shipments, and the expected accretive financial impact of the acquisition.
Global population growth is driving increasing demands on food production. Simultaneously, the world is embracing an awakening to the imperatives of environmental sustainability. While demand is soaring for traditional production-boosting synthetic pesticides and fertilizers, these products are in turn being eclipsed by new generations of eco-friendly agrochemicals. New and old generations of agrochemicals face common challenges in getting oily (hydrophobic) active ingredients to become effectively absorbed and thus “bioavailable” within targeted plant species (whose biochemistry is mostly water-based). PBI’s Ultra Shear Technology™ (“UST™”) nano emulsification platform, which can make oils effectively soluble in water, is a strategic “change agent” technology platform for this market sector, expected to enable more effective agrochemical dosing while reducing the quantities of expensive active ingredients required. Pesticides, used to control insects that damage crops and severely limit production, are projected to grow in worldwide sales from $84.5 billion in 2019 to $131 billion by 2023. Fertilizers, used to replenish the soil with essential nutrients required for better crop growth and production, are expected to achieve global sales of approximately $232 billion by 2025.
Mr. Richard T. Schumacher, President, and CEO of PBI commented: “As previously announced, upon completion, this acquisition of assets will establish PBI with a portfolio of respected brand names in the eco-friendly agrochemicals market, with unique and effective proprietary formulations, advantageous manufacturer relationships, trademarks, intellectual property, registrations and licenses, and access to the distributor and end-customer relationships worldwide. We expect these assets to be accretive, driving significant new revenues and profitability by Q4 2021 and substantially in 2022 and beyond.”
Mr. Schumacher continued: “While the acquired assets are expected to be dramatically impactful, we expect that our UST nanoemulsions technology platform will propel a major improvement in the economics and effectiveness of agrochemicals. We are looking forward to the opportunity to leverage the UST technology platform within a diverse line of next-generation, eco-friendly agrochemicals that fall into two of the hottest growth segments in agricultural production worldwide: organic foods and environmental sustainability.”
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PBI’s Board Chairman, Mr. Jeffrey N. Peterson expanded on the strategic context of this acquisition: “PBI’s UST platform provides a unique and highly effective route for the creation of nanoemulsions with extremely low and consistent droplet sizes, which offer revolutionary improvements in more effective and economical products with improved sensory profiles, texture, appearance, stability, water solubility, and bioavailability. We expect these products to serve an amazing diversity of large commercial markets, from food and beverages to cosmetics, nutraceuticals, pharmaceuticals, and now agriculture.”
Mr. Peterson continued: “We have previously announced initial relationships to open up pharmaceutical and hemp-derived product applications, as well as plans to bring PBI into the cosmetics and personal care products markets. This asset acquisition will quickly drive our penetration into the agrochemicals sector; importantly, it also includes products in the commercial, and retail cleaning/disinfection/healthcare arena as well. It is also expected to quickly extend into cosmetics and personal care products. While our overall strategy continues to focus on a licensing and equipment leasing/servicing business model for UST worldwide, this investment into direct participation and potential redefinition of terms of competition within an entire market sector is expected to demonstrate the strategic reach and destiny for our UST platform, which we can extend into many other major market opportunities as well.”
The letter of intent executed between the companies details the milestones that need to be met to complete the transaction, including the completion of all due diligence and acquisition financing.
Forward-Looking Statements
This press release contains forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our or our industry’s actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, implied, or inferred by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” estimates,” “predicts,” “projects,” “potential” or “continue” or the negative of such terms and other comparable terminology. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. In evaluating these statements, you should specifically consider various factors. Actual events or results may differ materially. These and other factors may cause our actual results to differ materially from any forward-looking statement. These risks, uncertainties, and other factors include, but are not limited to, the risks and uncertainties discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, and other reports filed by the Company from time to time with the SEC. The Company undertakes no obligation to update any of the information included in this release, except as otherwise required by law.
Source: Biospace
