MustGrow Biologics Corp. has signed a non-binding term sheet with Univar Solutions Canada Ltd. to acquire crop nutrition company NexusBioAg.

Upon closing of the proposed transaction, MustGrow would have access to NexusBioAg’s existing sales with new third party product lines anticipated in 2025 and MustGrow’s proprietary TerraMG expected to launch thereafter.

MustGrow develops organic biocontrol and biofertility products by harnessing the natural defense mechanism and organic materials of the mustard plant. Its first offering is an organically certified biofertility product called TerraSante, which is currently available in California, Florida, Arizona, Idaho, Oregon and Washington.

MustGrow’s soil biocontrol technology, TerraMG, is an organic plant extract from mustard used to help treat diseases and insect pests such as nematodes. Currently not registered, MustGrow is doing registration work with TerraMG in the U.S. and Canada. MustGrow’s commercial partner Bayer AG signed a commercial licensing agreement in December 2023 for TerraMG in Europe, the Middle East and Africa.

“This is an exciting opportunity to deliver technology driven, innovative products to farmers in Canada and ultimately the United States,” said Corey Giasson, president and CEO of MustGrow. “This synergistic acquisition would solidify MustGrow’s position as a fully integrated biological and regenerative agriculture company, with an established in-licensed third-party product line, while laying the foundation for the commercialization of MustGrow’s own innovative products.”

The acquisition, subject to due diligence, regulatory approvals and the execution of a definitive agreement is expected to close around Dec. 31, 2024. Under the proposed terms, the deal will include a deferred cash payment and contingent payments in 2025 and 2026, subject to adjustments.