Vancouver, British Columbia--(Newsfile Corp. - April 9, 2024) - Argo Living Soils Corp. (CSE: ARGO) ("Argo" or the "Company") is pleased to announce that, further to its news releases dated March 5, 2024 and April 2, 2024, it has signed a non-binding memorandum of understanding (the "MOU") with Connective Global SDN BHD ("Connective Global") to establish a strategic partnership between the two entities.
Pursuant to the MOU, Argo and Connective Global have agreed to jointly pursue the research and development of biochar for agricultural and industrial applications in Malaysia and across certain regions in Asia. Argo and Connective Global intend to work together to research, and develop biochar-enhanced products tailored for distribution in Southeast Asia and the Middle East. The research and development of products by Argo and Connective Global will be for a period of 12 months. Pursuant to the MOU, Connective Global will secure the research facilities of University Putra Malaysia for Argo and Connective Global to carry out their joint research. In consideration for use of research facilities and Connective Global's collaboration, Argo has agreed to fund a CAD$100,000 budget for research and development and issue up to one million common shares to Connective Global in stages based on achieving certain performance milestones in connection with the research and development phase, subject to applicable securities laws and exchange acceptance.
On successful completion of the 12-month research and development phase, Argo and Connective Global intend to negotiate and enter into a definitive commercial production agreement.
Expanding Markets: While Argo continues to pursue biochar opportunities in North America, the Company's strategic partnership with Connective Global has already identified promising prospects in the Middle East and Southeast Asia. Several Middle Eastern nations are spearheading initiatives to convert desert or arid land into arable farmland. Driven by concerns over food security, population growth, and the imperative to diversify economies, countries such as Saudi Arabia, the United Arab Emirates (UAE), Egypt, Qatar, and Jordan have launched initiatives that underscore a growing recognition of sustainable agriculture's importance.
Through the ongoing discussions, Argo and Connective Global have identified additional opportunities for biochar-related products in key markets such as India and China as well as several South-East Asian nations. Using biochar to restore and enrich heavily used agricultural soils will benefit the food production of those countries.
In summary, the soil enhancement and fertilizer markets have experienced significant transformations over the past decade. Technological advancements, evolving consumer preferences, regulatory shifts, and changing agricultural practices have contributed to an escalating demand for products like Argo's proprietary biochar offerings.
Peter Hoyle, Chief Executive Officer of Argo, comments, "This is an exciting and significant step for Argo, which will allow us to evolve our business in the large and growing Asian market."
About Connective Global
Connective Global is a Malaysian-based company that manufactures and distributes organic fertilizers, agricultural products, and food items in Southeast Asia, with a focus on environmentally sustainable products and services.
About Argo Living Soils Corp.
The Company specializes in producing and developing organic products, including soil amendments, living soils, biofertilizers, vermicompost and compost extracts formulated specifically for high-value crops. The Company's vision and overall business plan are to create an established brand of organic and/or environmentally friendly products. The Company was founded in 2018, and its production facilities have been expanded and relocated to Duncan, British Columbia, in a joint venture with Pacific Composting.
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For further information please contact:
Peter Hoyle
Chief Executive Officer
Argo Living Soils Corp.
Tel: (604) 961-2877
Email: peter.hoyle@shaw.ca
The Canadian Securities Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release.
Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, the completion of the research and development of biochar products pursuant to the MOU; the Company and Connective Global researching, developing and testing biochar-enhanced organic fertilizer products tailored for distribution in Southeast Asia and the Middle East; Connective Global securing the research facilities of University Putra Malaysia; the Company funding a CAD$100,000 budget and issuance of up to one million common shares to Connective Global, Argo and Conenctive Global negotiating and entering into a commercial production agreement on completion of the 12-month research and development term; and Argo creating an established brand of organic and/or environmentally friendly products. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "will", "will have", "intend" "plans", "aims", "potential" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are from those expressed or implied by such forward-looking statements or forward-looking information subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different, including receipt of all necessary regulatory approvals. Although management of the Company have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/204773
SOURCE: Argo Living Soils Corp.
