Argo Completes First Phase of MOU with Connective Global, Secures R&D Facility at University Putra Malaysia
Argo Living Soils Corp. announced the completion of the first phase of its Memorandum of Understanding (MOU) with Connective Global SDN BHD. Under the MOU, both companies will jointly conduct R&D on biochar at University Putra Malaysia, with the aim of developing biochar-enhanced products for Southeast Asia and the Middle East. Connective Global has secured the research facilities and delivered 20 tonnes of biomass for this purpose. Argo will finance the R&D with CAD$100,000 and issue up to 1 million shares upon meeting performance milestones. Successful outcomes may lead to a commercial production agreement.
- Successful completion of the first phase of MOU with Connective Global.
- Secured R&D facilities at University Putra Malaysia.
- 20 tonnes of biomass delivered for initial processing.
- Commitment to CAD$100,000 funding for R&D.
- Issuance of up to 1 million shares tied to performance milestones.
- Potential for commercial production agreement upon successful R&D results.
- Argo to own all developed intellectual property during the R&D phase.
- Identification of multiple organic biochar-enhanced products with immediate commercial applications.
- Issuance of 250,000 shares immediately to Connective Global, leading to potential shareholder dilution.
- Additional up to 1 million shares to be issued based on performance, further dilution risk.
- Dependent on achieving certain performance milestones for full R&D funding.
Vancouver, British Columbia--(Newsfile Corp. - June 3, 2024) - Argo Living Soils Corp. (CSE: ARGO) (FSE: 94Y) (OTC Pink: ARLSF) ("Argo") is pleased to announce the successful completion of the first phase of the Memorandum of Understanding (MOU) previously signed on April 9, 2024 with Connective Global SDN BHD ("Connective Global"), a Malaysian-based company.
Under the terms of the executed MOU, Argo and Connective Global have agreed to jointly conduct research and development of biochar for agricultural and industrial applications at University Putra Malaysia (UPM). This collaboration aims to develop biochar-enhanced products tailored for distribution in Southeast Asia and the Middle East.
Pursuant to the executed MOU, Connective Global has secured the research facilities of University Putra Malaysia for Argo and Connective Global to carry out their joint research. The research and development of products will be conducted over a period of up to 12 months.
In consideration of Connective Global securing the R&D facilities at UPM, Argo will issue , subject to applicable securities laws and exchange approval, 250,000 common shares of Argo to Connective Global. Argo is pleased to report that Connective Global has already secured and delivered 20 tonnes of biomass from palm oil processors to University Putra Malaysia. The university will process this biomass into base biochar material as a proof of concept.
Argo has committed to funding a total of CAD
While attending meetings in Malaysia with Connective Global at University Putra Malaysia, senior representatives from Argo further defined the research and development program and objectives with Connective Global and UPM. This has led to the identification of multiple organic biochar-enhanced products previously developed by University Putra Malaysia, which have immediate commercial applications.
The refined research and development program aims to extend the extensive work previously completed at the university, creating a suite of organic biochar-enhanced products for both agricultural and industrial markets, proprietary to Argo. Argo will own all intellectual property developed, or created by the parties during the R&D phase.
Upon achieving successful results from this R&D program, Argo and Connective Global anticipate formalizing a commercial production agreement, transitioning from research to practical application.
Peter Hoyle, President of Argo, commented, "We are thrilled to have quickly completed this first phase of the MOU with Connective Global, commencing our research and development program at UPM. This relationship is already yielding results. At our onsite meetings we identified opportunities for several advanced biochar-based soil enhancement products previously developed by University Putra Malaysia. We look forward to advancing the current MOU to the definitive agreement stage."
About University Putra Malaysia
University Putra Malaysia (UPM), established initially as the School of Agriculture in 1931, has its origins in agricultural education and research. It maintains a strong focus on agricultural sciences, including agronomy, horticulture, animal sciences, food science and technology, forestry, and agricultural biotechnology. Ranked #36 globally for Agricultural Sciences by U.S. News & World Report, UPM is renowned for its robust programs and research initiatives in these fields.
About Connective Global
Connective Global is a Malaysian-based company specializing in the manufacture and distribution of organic fertilizers, agricultural products, and food items in Southeast Asia, with a focus on environmentally sustainable products and services.
About Argo Living Soils Corp.
Argo Living Soils Corp. specializes in producing and developing organic products, including soil amendments, living soils, bio-fertilizers, and vermicompost and compost extracts specifically formulated for high-value crops. Founded in 2018, Argo is dedicated to creating an established brand of organic and environmentally friendly products. The company's production facilities are located in Duncan, B.C., through a joint venture with Pacific Composting.
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For further information please contact:
Peter Hoyle
Chief Executive Officer
Argo Living Soils Corp.
Tel: (604) 961-2877
Email: peter.hoyle@shaw.ca
The Canadian Securities Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release.
Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-Looking information includes, but is not limited to, the completion of the research and development of biochar products pursuant to the MOU; the Company and Connective Global researching, developing and testing biochar-enhanced organic fertilizer products tailored for distribution in Southeast Asia and the Middle East; Connective Global securing the research facilities of University Putra Malaysia; the Company funding a CAD
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