Investors

PolyGenomX Limited (PGX) has, via a number of field trials and laboratory tests, demonstrated its ability to produce polygenomic or epigenomic varieties of all of the plants species it has selected for development.

PGX polygenomic varieties undergo gene duplication (or polyploidy) adding additional cellular copies of their natural genomes (DNA). A significant effect of this rare but natural phenomenon is a significant (around 50%) increase in the plant’s efficiency in synthesizing atmospheric carbon (CO2). Faster and more efficient carbon synthesis means accelerated growth, faster maturation, shorter harvest cycles, greater biomass, higher yields and an increase in general robustness – all with no increase in the plant’s use of other inputs (water, nutrient, fertiliser, labour).

PGX epigenomic varieties undergo stress conditioning to trigger increased tolerance to conditions such as aridity, salinity, soil toxicity, mineral deficiency and an increasingly hotter world. In late 2012 the Company began the process of extending this capability so as to develop plants that promise to be naturally resistant to the bacterial, viral and fungal diseases which, despite higher and higher use of chemical pesticides, increasingly decimate the world’s crops, reducing yields, raising food costs and contributing directly to global hunger.

Business Model

The Company’s business model has the following phases:

  1. Development of the Process IP. To date this phase has occupied more than 20 years of the Inventor, Malcolm Lamont’s, life and the first six years of PolyGenomX’s operations. While R&D will never stop, the Processes are now well enough understood as to form the basis of a reliable commercial operation, delivering fit-for-purpose products to large-scale plant-based clients;
  2. Development of Support Systems. The processes, systems and legal documentation required to transform both the Company’s Plant and Process IP into commercially-licensable products are now at a level which, in the words of one international consultancy, ‘would do justice to an enterprise who’s been in the industry for four decades’;
  3. Performance Verification. While significant sums have already been invested in process and plant performance verification with uniformly positive results, as with R&D this phase will continue in the laboratory but will now, increasingly, ‘move out into the field’ as our clients conduct their own field trials and begin to refine their own business models to exploit faster growing, earlier maturing and higher yielding crops;
  4. Commercialisation. As the Company moves its focus from laboratory to marketplace, a new team of commercial and technical professionals is required to grow the business, and the Company’s founders intend to make way for a new, professional C-Team with broad experience in commercialising plant biotechnology.

Revenue Model

Funds Sought

To fund a rapid transition into global commercialisation, the Company is seeking an underwriting of US$10m.

This will ensure the smooth execution of this next 3-year phase.

‘Underwriting’ because there is strong evidence based on past deals and continuing relationships that early licensing deal-flow will yield significant cashflow within 18 months of launch.

Notwithstanding revenue projections, the Company’s Board is not prepared to ‘get half-way across the desert only to find an oasis is dry’ and so seeks to put fully guaranteed funding in place before project commencement and to have that available for draw-down against performance milestones.

Value Offered

The Company is offering, in exchange for US$10 million:

  1. A 20% interest in and a seat on the Board of the Company in which all of the aforementioned IP is held; plus
  2. An 80% (and controlling) interest in a royalty-free, global and exclusive license in all future enhanced varieties of a single species of the Investor’s choosing.

One Exclusive Opportunity

There will be only one offer of a 20% stake in PGX, but there will be multiple future opportunities to acquire up to an 80% interest in a whole-of-species license.

Such a whole-of-species licenses provide an effective monopoly on all enhanced varieties of a single high-value commodity plant species such as Tomato, Potato, Rice, Coffee, Oil Palm, Cacao or Barley.

PGX, by its retention of the remaining 20% interest in each Whole of Species License, will take its returns solely in the form of performance dividends from the commercialisation of its plants, and in cash and/or shares should the Species entity become a future IPO.