Attached files
| file | filename |
|---|---|
| EX-10.25 - LANDEC CORP \CA\ | v168121_ex10-25.htm |
| 8-K - LANDEC CORP \CA\ | v168121_8k.htm |
| FOR IMMEDIATE RELEASE | |
| Contact Information: | |
|
At
the Company:
|
EAS
& Associates:
|
|
Gregory
S. Skinner
|
Liz
Saghi
|
|
Vice
President Finance and CFO
|
(805)
967-0161
|
|
(650)
261-3677
|
LANDEC
CORPORATION AND MONSANTO COMPANY MODIFY LICENSE AND SUPPLY
AGREEMENT
MENLO
PARK, CA – December 3, 2009 -- Landec Corporation (Nasdaq: LNDC), today
announced that it has modified its License, Supply and R&D Agreement with
Monsanto Company (NYSE: MON) (the “Modified Agreement”).
Under the
terms of the Modified Agreement, Monsanto will continue to have an exclusive
license to use Landec’s Intellicoat® polymer technology for specific seed
treatment applications. Over the remaining two-year term of the
Modified Agreement, Monsanto will investigate uses of Landec’s Intellicoat
technology in a variety of seed categories in the field exclusively licensed to
Monsanto. As a result of the Modified Agreement, Landec now has the
flexibility to pursue on its own, or with other partners, applications of its
Intellicoat polymer technology in seed coatings outside of the exclusive field
licensed to Monsanto.
Along
with regaining the use of the Intellicoat technology outside of the specific
applications licensed to Monsanto under the Modified Agreement, Landec will
assume responsibility for Landec Ag’s operating expenses and will realize all
the revenues and profits from the sales of existing and new Intellicoat seed
coating products.
“Under
the Modified Agreement, Landec will continue to work with Monsanto in the
exclusive field, will continue to recognize the same amount of license fees as
before for the remaining two years of the Modified Agreement and will have the
opportunity to sell Intellicoat seed treatment products outside of Monsanto’s
exclusive field,” stated Gary Steele, Chairman and CEO of Landec. “We
do not expect this modification to have any impact on our financial results for
fiscal year 2010.”
The
Modified Agreement will also continue to provide for a fee to be payable to
Landec of $4 million if Monsanto elects to terminate the agreement or $10
million if Monsanto elects to purchase the rights to the exclusive
field. If Monsanto does not exercise its purchase option by December
1, 2011, Landec will receive the termination fee and all rights to the
Intellicoat seed
coating technology licensed to Monsanto will revert back to
Landec. If Monsanto exercises its purchase option, Landec and
Monsanto will enter into a new long-term supply agreement in which Landec would
be the exclusive supplier of Intellicoat polymer materials to
Monsanto.
Landec
Corporation is a materials science company that designs, develops, manufactures
and sells temperature-activated and other specialty polymer products for a
variety of food, agricultural and licensed partner applications. The Company’s
temperature-activated polymer products are based on its proprietary Intelimer®
polymers which differ from other polymers in that they can be customized to
abruptly change their physical characteristics when heated or cooled through a
pre-set temperature switch. For more information about the Company
visit Landec’s website at www.landec.com.
Except
for the historical information contained herein, the matters discussed in this
news release are forward-looking statements that involve certain risks and
uncertainties that could cause actual results to differ materially, including
such factors among others, as the timing and expenses associated with expanding
operations, the ability to achieve acceptance of the Company's new products in
the market place, the severity of the current economic slowdown, weather
conditions that can affect the supply and price of produce, the amount and
timing of research and development funding and license fees from the Company's
collaborative partners, the timing of regulatory approvals, new product
introductions, the mix between domestic and international sales, and the risk
factors listed in the Company’s Form 10-K for the fiscal year ended May 31, 2009
(See item 1A: Risk Factors). As a result of these and other factors,
the Company expects to continue to experience significant fluctuations in
quarterly operating results and there can be no assurance that the Company will
remain consistently profitable. The Company undertakes no obligation
to update or revise any forward-looking statements whether as a result of new
developments or otherwise.