LUXEMBOURG - Moolec Science SA (NASDAQ:MLEC), a pioneer in Molecular Farming, has secured a three-year offtake agreement for its GLASO™, a high-concentration GLA Safflower Oil. The deal with a leading global consumer packaged goods and pet food company will see the delivery of an initial 50 tons of GLASO™ to the U.S. market in 2025.
GLASO™ is derived from bioengineered safflower seeds and boasts nearly three times the gamma linolenic acid (GLA) content of traditional sources. It is primarily used in dietary supplements, functional foods, cosmetics, and pet nutrition. The agreement marks a significant step for Moolec Science in commercializing its innovative health solutions.
To ensure a fully controlled and traceable supply chain for GLASO™, Moolec Science has also entered into binding agreements with farmers for safflower cultivation and with an industrial partner for downstream processing.
Chief Technology Officer & Co-Founder Martín Salinas expressed excitement about the significant supply agreement and the company's partnership for industrial toll processing, emphasizing the commitment to scaling production and meeting the demand for sustainable nutritional ingredients.
CEO & Co-Founder Gastón Paladini echoed this sentiment, highlighting the agreement as an essential step in Moolec's commercialization journey. He mentioned that the company would continue to advance its business development and commercialization efforts with key industry players.
Moolec's Molecular Farming Platform is noted for its ability to produce high-quality ingredients such as nutritional oils and proteins in plants, offering a sustainable and cost-effective alternative to traditional and cellular agricultural methods.
The company has refrained from disclosing specific details about the third parties involved and the financial terms of the agreement due to ongoing negotiations for further contracts. Moolec Science will provide updates on its annual report, which includes a comprehensive overview of its business and financial condition.
The information presented is based on a press release statement from Moolec Science.
In other recent news, Moolec Science, a key player in the agrifood sector, has made significant strides in its operations. The company recently announced during an earnings call that they have received USDA-APHIS regulatory approval for their Piggy Sooy platform, marking a first in the industry. This development coincides with their ongoing field trials for Piggy Sooy in the US and discussions with the FDA about further regulatory steps.
Moolec Science also revealed its financial growth, highlighting an increase in revenues and expenses with a gross margin of around 18%. The company holds a cash position of $4.3 million and has secured additional funding through an equity line of credit. Despite the economic challenges in Argentina, Moolec Science maintains a global presence with limited exposure to the Argentine economy, suggesting that inflation and currency devaluation are not expected to significantly impact the business.
In terms of product development, the company is pre-commercializing GLASO, targeting early 2025 for market entry, and has been granted two US patents for their SPC2 product. These developments, coupled with the regulatory approval of Piggy Sooy, underscore Moolec Science's commitment to innovation in the agrifood sector.
InvestingPro Insights
As Moolec Science SA (NASDAQ:MLEC) embarks on its journey to commercialize GLASO™, a high-concentration GLA Safflower Oil, the company's financials and stock performance provide a broader context for investors. Here are some key metrics from InvestingPro to consider:
- Market Capitalization: Moolec Science currently has a market cap of $38.32 million, reflecting its position in the market as a smaller cap company with potential for growth.
- Price Volatility: With a history of high price volatility, investors should be prepared for swings in the stock price, which can be influenced by market trends as well as company-specific news.
- Financial Health: The company's short-term obligations exceeding its liquid assets may indicate a need for careful cash management moving forward, especially as it scales up production and enters into new commercial agreements.
InvestingPro Tips that could be particularly relevant for readers interested in Moolec Science include:
1. Analysts anticipate sales growth in the current year, which could be a positive sign for the company's financial trajectory as it begins fulfilling its new offtake agreement for GLASO™.
2. The company is not expected to be profitable this year, highlighting the importance of long-term strategy and investment in its innovative Molecular Farming Platform.
For those looking to delve deeper into the company's prospects and performance, there are an additional 13 InvestingPro Tips available at https://www.investing.com/pro/MLEC. These tips can provide valuable insights for investors aiming to make informed decisions about Moolec Science. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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