Bioceres Crop Solutions Announces Brazil´s Regulatory Approval of Drought Tolerant HB4® Wheat for Commercialization and Cultivation

Rhea-AI Summary

Bioceres Crop Solutions Corp. (NASDAQ: BIOX) announced that Brazil's National Biosafety Commission has approved the commercialization and cultivation of HB4 Wheat. This follows an earlier approval for food and feed use in November 2021. The decision not only opens the Brazilian market but also allows for further collaboration with EMBRAPA to develop local wheat varieties. HB4 Wheat can increase yields by over 40% in water-stressed areas and is expected to add $15-$20 million in EBITDA by FY24. Brazil plants 2-3 million hectares of wheat annually, contributing significantly to South America's wheat acreage.

Positive

• Full approval for HB4 Wheat commercialization in Brazil opens significant market opportunities.
• Expected incremental EBITDA increase of $15-$20 million by FY24.
• HB4 Wheat technology has demonstrated over 40% increase in yields under severe water stress.

Negative

• None.

ROSARIO, Argentina--(BUSINESS WIRE)-- Bioceres Crop Solutions Corp. (Bioceres) (NASDAQ: BIOX), a fully integrated global provider of crop productivity solutions designed to enable the transition of agriculture toward carbon neutrality, announced today that CTNBio, the National Biosafety Commission of Brazil´s Ministry of Science, Technology, and Innovation, has concluded the safety evaluation of HB4 Wheat, providing full approval for commercialization and cultivation in Brazil.

Today’s approval builds on Brazil’s previous approval for food and feed use of HB4 Wheat flour in November 2021. In addition to opening the Brazilian market to the technology, the decision clears the path for commercialization in Argentina through channels other than Bioceres’ identity-preserved HB4 Program.

The approval also enables the acceleration of Bioceres’ collaboration with EMBRAPA (Brazil’s Agricultural Research Corporation) to develop subtropical wheat varieties to increase the supply of local materials in this geography. HB4 Wheat offers the potential for double cropping – rotating wheat with a summer legume – in regions of the country that are currently limited by water availability.

The HB4 technology is a key tool in the adaptation of farming systems to a more extreme climate, having already proven to deliver more than 40% yield increases in environments under severe water stress, based on results from Argentina’s recent drought-affected crop. This approval paves the way for the technology to deliver $15-$20 million in incremental EBITDA by FY24, as previously communicated.

Brazil is the second country where regulatory agencies have cleared HB4 Wheat for cultivation, after Argentina, and completes the approval processes for the company´s wheat target markets in Latin America. Brazil plants 2-3 million hectares of wheat annually and, together, both countries plant 90% of South America’s wheat acreage. HB4 Wheat is also approved for food and feed use in the United States, Colombia, New Zealand, Australia, South Africa and Nigeria, and for feed use in Indonesia.

About Bioceres Crop Solutions Corp.

Bioceres Crop Solutions Corp. (NASDAQ: BIOX) is a fully integrated provider of crop productivity technologies designed to enable the transition of agriculture towards carbon neutrality. To do this, Bioceres’ solutions create economic incentives for farmers and other stakeholders to adopt environmentally friendlier production practices. The Company has a unique biotech platform with high-impact, patented technologies for seeds and microbial ag-inputs, as well as next generation crop nutrition and protection solutions. Through its HB4 program, the Company is bringing digital solutions to support growers’ decisions and provide end-to-end traceability for production outputs. For more information, visit here.

Forward-looking statements

This communication includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements are based on management’s reasonable current assumptions, expectations, plans and forecasts regarding the Company’s current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of the Company to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management’s expectations or could affect the Company’s ability to achieve its strategic goals, including the uncertainties relating to the impact of COVID-19 on the Company’s business, operations, liquidity and financial results and the other factors that are described in the sections entitled “Risk Factors” in the Company's Securities and Exchange Commission filings updated from time to time. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. All forward-looking statements contained in this release are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date they are or were made, and the Company does not intend to update or otherwise revise the forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230303005095/en/

Bioceres Crop Solutions

Paula Savanti

Head of Investor Relations

investorrelations@biocerescrops.com

Source: Bioceres Crop Solutions Corp.

FAQ

What approval did Bioceres receive for HB4 Wheat?

Bioceres received full approval for the commercialization and cultivation of HB4 Wheat in Brazil.

What financial impact is expected from HB4 Wheat commercialization?

The commercialization of HB4 Wheat is expected to generate an incremental EBITDA of $15-$20 million by FY24.

How does HB4 Wheat perform in water-stressed conditions?

HB4 Wheat has demonstrated over 40% yield increases in environments affected by severe water stress.

What is the significance of HB4 Wheat's approval in Brazil?

The approval allows Bioceres to access a major agricultural market, as Brazil plants 2-3 million hectares of wheat annually.

When was the previous approval for HB4 Wheat in Brazil?

The previous approval for food and feed use of HB4 Wheat flour in Brazil was granted in November 2021.