November 21, 2019

By Lynda Kiernan

Ospraie Ag Science (OAS), an investor targeting opportunities in the agtech space supporting sustainable solutions that improve the quality of life for both farmers and society, has made its third crop protection investment in as many months. 

As a third investment since September, Ospraie has invested $3 million in Raleigh, North Carolina-based Plant Health Care, a provider of patented biological products that improve the  health, vigor, and yield of major field crops such as corn, soybeans, cotton, and rice, as well as fruit and vegetable specialty crops. In exchange for the investment, Osparie will gain a 16.6 percent share in the company.

The company’s cornerstone product is Harpin αß, a recombinant protein that works as a biostimulant to increase the yield and improve the quality of crops. It sells Harpin and its proprietary soil treatment Myconate through specialist distributors on a global scale, and sells Myconate in select markets.

Plant Health Care’s newest technology focuses on plant response elicitors called PREtec, which are peptides that stimulate plants to resist disease and for greater yields. To-date, the company has launched four PREtec platforms.

These products are less toxic and pose fewer environmental threats than conventional crop treatments, are safe for human handlers, protect crops from common environmental stressors and pests, and increase uptake and the efficiency in nutrient usage.

“Our investment in Plant Health Care aligns well with our mission to invest in companies that help farmers produce more efficiently,” said Dwight Anderson, co-founder and managing partner, Ospraie. “PHC’s experienced management team and proprietary portfolio of Biological products focused on protecting and stimulating crops will be a strong addition to the Ospraie Ag Science portfolio.”

The capital secured by Plant Health Care will be used to strengthen its balance sheet, to accelerate commercialization of its first products, to drive sales growth, and to use as additional working capital.

“We are delighted to have OAS join our investor community, making funds available to accelerate our plans to generate further growth and shareholder value,” said Chris Richards, CEO, Plant Health Care. “Their investment will enable PHC to build upon the growth and profitability of our commercial business and continue the momentum of the commercialization of our exciting PREtec products.”

Plant Health Care will be a new addition to a portfolio consisting of recently acquired holdings that will likely prove to be highly compatible.

OAS led funding rounds for two separate crop protection startups – one that enhances the active ingredients in both synthetic and biological pesticides, and the second that improves their delivery.

First, OAS led a $4 million Series A for AgroSpheres, a Virginia-based developer of a novel system for crop protection products. The round also included Cavallo Ventures, the venture arm of Wilbur-Ellis.

The company’s core business is based around Minicell technology, a natural fermentation product that encapsulates and delivers both biological and synthetic pesticides. This process, which has particularly significant potential for the delivery of biologicals, shields active ingredients from heat, UV light, microbes, and enzymes that would have a negative impact. This ability has dual benefits of improving performance, and lowering the dosage needed, and thereby reducing the environmental impact of agricultural production.

One week later, OAS led a $45 million Series B as a new investor in Terramera, an emerging cleantech startup with the goal of reducing synthetic chemical usage in global agricultural production by 80 percent, and increasing productivity by 20 percent by 2030.

With integrated operations that include a research lab, a greenhouse and farm, and an IP portfolio consisting of 185 patents, Terramera’s cornerstone is its Actigate™ Targeted Performance technology – a platform that significantly improves the performance of both natural and conventional active ingredients used in crop protection products. The result is higher rates of effectiveness for organic pesticides and less synthetic chemicals in farming systems.

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.