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Third Quarter 2016 Interim Report

Highlights

  • Agrinos Opens a New State-of-the-Art Microbial Crop Input Production Facility in Portland, Oregon
  • Agrinos Expands Partnership with Zuari Agri Sciences in India
  • Agrinos and KOVA Fertilizer Partnership Brings Innovative Biological Crop Solutions to US Midwestern Growers
  • Agrinos Announces the Addition of John Eustermann as General Counsel
  • Agrinos Announces Conversion of Bond with Strategic Investors
  • Agrinos Announces Extraordinary General Meeting of the Company regarding deregistration of the Company stock from the Norwegian Over the Counter (NOTC) exchange
  • Q3 2016 Sales Revenue of USD 2.48 million vs. USD 0.95 million in Q3 2015, with significant increases in sales revenue in Agrinos’ core geographies
  • Q3 2016 Operating Expenses of USD 5.83 million vs. USD 6.75 million in Q3 2015, a decrease of more than 13% due to continued cost control programs
  • Q4 2015 through Q3 2016 12-month Sales Revenue of USD 7.74 million vs. USD 4.93 million in the 12-month period from Q4 2014 through Q3 2015, an increase of more than 50% in this comparable 12-month period

“In Q3 2016, Agrinos continued to deliver against our plans for the year and accomplished important milestones we established as a part of our long-term strategy. We realized significantly improved sales revenue in core markets, continued with our cost management initiatives, officially opened our new Microbial Crop Input Production Facility, and continued expanding Research & Development (R&D) capabilities in the United States. Additionally, considerable progress continues in developing the collaborative efforts with our strategic partner, EuroChem. Thus, on a number of fronts, including core commercial market growth, valuable capability expansion, and important partnership development, we continue to make important progress regarding our long-term strategy and our key milestones,” said Chief Executive Officer, D. Ry Wagner.

“The opening of our new, state-of-art Microbial Crop Input Production Facility in Portland, Oregon, marked a major accomplishment for the company. The facility, which reached substantial completion on schedule and within budget, provides us with the ability to deliver our best-in-industry microbial products to existing and future markets. Also, it allows us to continue to develop new products that take advantage of our growing understanding of the functionalities of specific microbial consortia. Further, the new production facility complements our world-class R&D operation in Davis, California, and our biological crop nutrition production facility in Sonora, Mexico. Taken together, Agrinos’ R&D and production facilities allow the company to develop, produce, and commercialize our existing and next-generation technologies with world-class quality and cost efficiency.

“Agrinos has also secured new strategic partnerships while expanding and enhancing our existing partnerships with key distribution channels and growers in major agricultural markets including, but not limited to, the launch of a new such relationship with KOVA Fertilizer in the US. We are also pleased with the expansion of our partnership with Zuari Agri Sciences in India. Aligned partnerships, in combination with continued market penetration through existing channels, have resulted in double-digit revenue growth in several key geographies in Q3 2016.

“The Company’s sales revenue increased by over 50% in the 12-month period from Q4 2015 through Q3 2016 as compared to the same 12-month period from Q4 2014 through Q3 2015, while at the same time realizing a decrease in operating expenses due to our cost control measures. This is an important comparison as Agrinos recognizes the majority of sales revenue in the third and fourth quarters due to the normal market cycles in our core agricultural markets. The significant increase in sales revenue demonstrates the success we are having as a result our strategy to align Agrinos technologies with select distribution channel partners in order to bring new solutions for improved crop productivity and quality to growers around the world.

“With regard to the global management team, we have filled a critical leadership position with the addition of John Eustermann in the role of General Counsel. John’s appointment brings in-house key legal skills that should serve the Company well as we move to the next phase of our growth strategy. In addition, Agrinos announced an Extraordinary General Assembly (EGM) of the Company to consider a Board-approved resolution to deregister Agrinos AS from the Norwegian Over the Counter (NOTC) exchange. Management and the Board believe this step will provide several important benefits to our commercial operations and our efforts to further create shareholder value. The EGM met on October 5, 2016, and the resolution to deregister was approved. The deregistration process is anticipated to be completed in November 2016. Following this event Agrinos will continue to maintain a strong relationship with all shareholders, and with the broader investor marketplace, by offering timely and insightful communications on company performance.

“Overall, I am very satisfied with our third quarter performance. We met or exceeded our third quarter and year-to-date goals, which included improving topline revenue, strengthening strategic core capabilities, and growing the organization in a deliberate and thoughtful manner while maintaining appropriate control over costs. As we move into the final quarter of the year, I anticipate additional milestone accomplishments will include continued revenue growth in key markets, as well as the development of our partnership with EuroChem. Each milestone is aligned with our long-term growth strategy, and I look forward to working with my colleagues and dedicated professionals here at Agrinos, and within our partner organizations, for the remainder of 2016 and beyond,” Wagner concluded.

Material
Agrinos’ interim report is available, click here to view

 

For further information, please contact:
John Janczak
CFO
Mobile: +1 817 507 6530
E-mail: john.janczak@agrinos.com

About Agrinos
Agrinos is a biological crop input provider committed to improving the productivity and sustainability of modern agriculture. Agrinos’ range of biofertilizers and biostimulant products help farmers to practice profitable agriculture by providing increased crop productivity, improved efficiency of conventional fertilizer and a reduced environmental footprint.

Based on Agrinos’ proprietary High Yield Technology (HYT®) platform, the HYT products provide benefits by strengthening the soil-based microbial ecosystem, stimulating crop development at key points in the growth cycle and boosting natural plant resistance to environmental stresses. With solutions for a variety of crop categories, the technology comprising the HYT products has demonstrated its value in third-party trials in key agricultural regions worldwide.

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