Affinor Growers Inc. has entered into an agriculture technology agreement with FARMX Produce Inc. dated Sept. 1, 2024. According to the terms and conditions of the agreement, Affinor has granted FARMX rights to use and exploit the company's industrial designs for the cultivation of romaine lettuce and other leafy greens (the licensed IP) and certain know-how associated therewith, as follows:
- A two-year exclusive right to use and exploit the licensed IP in British Columbia;
- A 20-year non-exclusive right to use and exploit the licensed IP in Canada (excluding British Columbia).
As outlined in the terms of the agreement, the licenses granted and FARMX's right to use the licensed IP is subject to the following conditions:
- FARMX will exclusively source and purchase any and all equipment required to use the licensed IP, including but not limited to vertical towers, greenhouses, and any other equipment required to utilize the licensed IP (the equipment), from Affinor (unless Affinor, in its sole discretion waives the right to be the exclusive equipment provider for any equipment).
- FARMX will purchase the necessary equipment from Affinor required to use the licensed IP for a minimum 60,000-square-foot facility in British Columbia.
- Within six months of the effective date of the agreement, FARMX will either have (i) made the equipment purchase for a minimum 60,000-square-foot facility or (ii) paid Affinor a non-refundable deposit of $ 5 million, which will be applied toward FARMX's payment for its purchase of the equipment. However, if FARMX has not purchased equipment as required and/or has not paid the deposit, then Affinor has the right to either allow FARMX to have another six months to make the required purchase of the equipment or else to terminate the exclusive license such that FARMX's rights shall convert to non-exclusive.
For more information:
Affinor Growers
affinorgrowers.com