New Purchase Order for
CX-6 SMART Seeders and Other Major Developments
Fundamental Research Corp - Report Highlights:
- We are raising our fair value estimate from $1.90 to $2.47 per share.
- Clean Seed Capital Group Ltd. (“company”, “Clean Seed”) announced last month that it received a Notice of Allowance from the U.S. Patent and Trademark office for its SMART Seeder™ Intellectual Property. We consider this a significant development for the company as it not only provides patent protection, but also allows the company to target the U.S. planter and seeder markets.
- The company also secured a purchase order with Rocky Mountain Equipment (TSX: RME) with a retail value of $9 million. We expect the company to deliver up to 14 seeder units over FY2018 and FY2019.
- Clean Seed has received working capital financing from Farm Credit Canada (“FCC”) for the current production of CX-6 SMART Seeders. Borrowings will be repayable via sales of Seeders.
- Clean Seed became the first company enrolled into the Saskatchewan Commercial Innovation Initiative Program, which reduces the company’s provincial tax rate from 12% to 6% for 15 years, commencing at the company’s choosing.
- Clean Seed’s shares are up 40% since we initiated coverage in November 2016.
- see back of report for rating and risk definitions
About Clean Seed Capital Group Ltd.
The common shares of Clean Seed Capital Group Ltd. are listed on the TSX Venture Exchange and trade under the symbol "CSX".
We are a team of innovators and business management professionals with a proven track record of game changing innovation and production of patented agricultural technologies at an incredibly high level. We pride ourselves as progress facilitators that quickly turn viable concepts and ideas into commercially viable products that can fulfill demand.
The CX-6 SMART Seeder™ is commercially available at over 30 leading agricultural equipment outlets in Western Canada and United States and we are proudly delivering SMART Seeder™ technology into the hands of large scale farming operations.
For further information please contact Clean Seed at 604-566-9895 and visit our website at http://www.cleanseedcapital.com.