(PRWEB) December 7, 2005
Perth-based biotechnology company Stirling Products Limited (ASX: STI) has signed a deal with listed South African agribusiness giant AFGRI Limited.
Under the agreement, AFGRI will fund all regulatory trials and registrations required to commercialise Stirling’s patented animal growth agent, ST810 for all livestock applications in South Africa.
“This agreement is the first plank in Stirling’s global commercialisation strategy,” said Stirling Managing Director, Dr Calvin London.
Subject to shareholder approval, AFGRI will have an option to acquire up to 51 per cent of the company and a position on the Board. Options priced significantly higher than current market price are at A$0.50 per share on or before 31st December 2006 or at A$1.00 per share on or before 31st December 2007.
“Early revenue to fund a global commercialisation strategy, consumer demand for an alternative to antibiotics in food production and a solid partnership with one of South Africa’s largest agribusiness companies are the three reasons shareholders will be delighted with this new deal,” Dr London said.
The market for ST810, a refined version of the beta agonist commonly used by asthmatics that fine-tunes the metabolism in animals to produce more lean muscle and less fat, is estimated to be in excess of A$60 million in South Africa alone.
“Regulatory trials funded and conducted through AFGRI but controlled by Stirling will commence in early 2006 and we plan to complete registration by the end of 2006 with potential products on the market by 2007,” Dr London said.
About Stirling Products: Stirling Products is commercialising patented animal growth promoters that turn fat into protein and improve feed efficiencies in poultry, sheep, pigs and cattle. These products offer a significant potential to reduce the global use of antibiotics and steroids for animal growth promotion.
About AFGRI: AFGRI is diversified agribusiness company listed on the Johannesburg Stock Exchange employing more than 5,000 people and generated revenues in 2005 of more than 6 billion Rand (A$1.2 billion) from a diverse range of agricultural services including finance, grain handling, feed lotting, farm equipment and scientific research.
For All Media Enquiries Contact: Managing Director, Dr Calvin London on
T: (08) 9480 1480, M: 0400 204616 or E: