Bio-Gene Technology Limited and STK Bio-Ag Technologies announced that binding terms have been agreed on a global collaboration partnership for the commercialisation of Bio-Gene's Qcide product in crop protection and other market segments. Bio-Gene and STK have allowed up to 90-days to complete the transaction documentation. As the Term Sheet is binding and the collaboration is in place, the transaction documents will incorporate the customary indemnities and warranties together with the finalisation of the development plan.

All other terms and conditions in the Term Sheet will be replicated in the final documents. The collaboration will continue while at least the USA EPA registration remains in place (reviewed by the EPA at least every 15 years from registration) or is terminated for lack of performance by either party. In the unlikely event that the transaction documents are not completed, the collaboration will continue on the basis of the terms outlined in the Term Sheet.

Bio-Gene and STK entered into a confidential Material Transfer Agreement in 2021 that facilitated STK's internal assessment of Qcide technology across a range of potential applications. Those studies mainly focused on crop protection applications but are also relevant for professional turf and ornamental markets and could be extrapolated into aquaculture, where STK's Aqua Division operates. Under the proposed agreement, STK intends to fully fund registration costs relating to the Qcide Active Ingredient.

This will include required efficacy and toxicology studies, field trials, the generation of manufacturing data and preparation of the regulatory submission. While STK would have ownership of the resulting registration, Bio-Gene will continue to own the IP relating to Qcide. Bio-Gene has unlimited access to the registration and can work with other commercial partners to develop and commercialise products in all market segments, including those licenced to STK on a non-exclusive basis.

The proposed collaboration will also see STK utilise its existing expertise and capabilities in plantations and extraction technology to develop a secondary manufacturing and supply source for Qcide. Both companies have agreed to assess the potential for Bio-Gene to be appointed as a marketing and sales agent for STK products (products based on Qcide and other STK products) in Australia and New Zealand. This is a significant transaction for Bio-Gene as it provides for the global co-development of Qcide which incorporates: a major financial investment that commits STK to fully fund studies to achieve global registrations of Qcide; access to the demonstrated expertise of one of the leading developers of botanical based crop protection solutions; further capability in developing manufacturing solutions for botanical based products; and global access for Bio-Gene in all market segments.