Tech: Calix just picked up a decade-long sales agreement for its fertiliser
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Calix shares hit their equal-highest point in nearly a year on Wednesday following the signing of a 10-year distribution agreement for its fertiliser product BOOSTER-Mag.
The company, whose tagline is “because there’s only one Earth — Mars is for quitters”, will see its bioactive magnesium hydroxide agricultural product, called BOOSTER-Mag, marketed and sold as an active ingredient by Afepasa, a Spanish premium sulphur manufacturer.
That lifted Calix (ASX:CXL) shares to an intraday high of 85.5c, their equal-highest point since early September 2018.
Afepasa is one of Europe’s largest suppliers of sulphur-based fertiliser and crop protection products, operating in more than 80 countries across five continents. BOOSTER-Mag is a concentrated mineral foliar fertiliser designed to obtain optimal vitality and yield for crops.
The decade-long agreement covers sales in Europe, Africa and the Middle East and is subject to a number of performance hurdles in the form of minimum sales volumes, ranging from 150 kilolitres in the first two years to 400kL from the fifth year onwards.
The product has been in development for more than four years and in trials has been shown to “substantially” boost grower productivity, safety and sustainability.
“For over 125 years, Afepasa have supplied sulphur fertilisers and products for the sustainable control of crop pests and diseases. Calix’s bioactive magnesium hydroxide has the potential to be a powerful and highly complementary addition to our mineral fertiliser and crop protection portfolio,” said Manuel Montana, managing director of Afepasa.
Phil Hodgson, Calix managing director, said the deal was a reward for his company’s hard work, and predicted Calix would report increased full-year revenues when it drops its financial accounts on the ASX on August 27.
“Development of new agricultural products takes time and significant investment. As a result it is very pleasing to have reached this significant milestone through partnering with a company of the reach and experience of Afepasa,” he said.
“We look forward to working with them to deliver the full potential of this application.”
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