REHOVOT, Israel - Casterra Ag Ltd., a bio-based industry solutions provider specializing in castor seeds, is expanding its production capacity through new strategic agreements. The Evogene Ltd . (NASDAQ:EVGN) (TASE:EVGN) subsidiary has partnered with seed producers in Brazil and Africa to boost its output by approximately 400 tons in 2024. This move aims to establish a long-term production infrastructure and diversify the company's supply chain.
The agreements with both existing and new seed producers are part of Casterra's strategy to mitigate production risks by expanding its geographic reach. The company's high-yield castor seed varieties, developed using Evogene's GeneRator AI tech engine, have demonstrated a germination rate of about 90%, surpassing industry standards. These seeds have also met stringent industry cleanliness and phytosanitary requirements.
Yoash Zohar, CEO of Casterra, highlighted the significance of the agreements for the company's supply chain resilience and their role in supporting local economies. Casterra is actively seeking more seed producers to collaborate within 2024 to sustain its seed production efforts.
Casterra's development of high-yielding castor seeds is directed towards the increasing demands of the biofuel market, among other bio-based industries. The company leverages a diverse collection of castor lines and cutting-edge plant genomics tools to optimize production.
Evogene, Casterra's parent company, is a computational biology firm that uses AI and Big Data to enhance the development of life-science-based products. The company operates through various subsidiaries, each utilizing specialized tech engines like GeneRator AI to innovate in their respective fields.
This expansion of castor seed production is based on a press release statement.
InvestingPro Insights
As Evogene Ltd. (NASDAQ:EVGN) (TASE:EVGN) gears up for increased production through its subsidiary Casterra, investors have taken notice of the company's strategic moves. The latest data from InvestingPro shows a remarkable 331.52% revenue growth over the last twelve months as of Q3 2023, indicative of the company's aggressive expansion efforts. Additionally, the gross profit margin stands at a healthy 71.02%, which could be a testament to the efficiency of Evogene's GeneRator AI tech engine and its subsidiaries' operational effectiveness.
InvestingPro Tips highlight that despite the company's significant revenue growth, analysts are cautious about its profitability in the near term. They do not anticipate Evogene will be profitable this year, and the firm is noted to be quickly burning through cash. However, it's also worth noting that Evogene holds more cash than debt, which may provide some financial flexibility as it scales up operations. With a market capitalization of $49.06 million, Evogene's financial health and future prospects are of keen interest to market watchers.
For investors looking to dive deeper into Evogene's performance and potential, InvestingPro offers additional insights. There are currently 11 more InvestingPro Tips available, which could provide a comprehensive understanding of the company's stock and its recent strong returns, including a 30.37% price uptick over the last six months. To access these tips and more detailed analytics, consider subscribing to InvestingPro using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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