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REHOVOT, Israel - ICL, a global specialty minerals and chemicals company, has entered into a definitive agreement to acquire the majority of activities of Lavie Bio Ltd., a subsidiary of computational biology firm Evogene Ltd. (NASDAQ: EVGN) (TASE: EVGN). The acquisition, announced today, includes Evogene’s MicroBoost AI for AG platform and is expected to be completed in the second quarter of 2025, subject to customary closing conditions. According to InvestingPro data, Evogene, currently valued at $6.3 million in market capitalization, has demonstrated strong revenue growth of 50.9% over the last twelve months, though the company maintains a challenging financial position.
Lavie Bio is known for its work in the ag-biologicals industry, developing microbiome-based products aimed at enhancing agricultural productivity and sustainability. The assets involved in the transaction encompass Lavie Bio’s core team, BDD technology platform, microbial bank, data assets, the majority of its development programs, and its commercial products. However, Lavie Bio’s existing agreements with its partners will remain with the subsidiary, potentially generating future revenue for its shareholders. InvestingPro analysis reveals that while Evogene holds more cash than debt on its balance sheet, the company is quickly burning through its cash reserves. Subscribers to InvestingPro can access 10+ additional key insights about Evogene’s financial health and market position.
The acquisition follows more than two years of strategic investment and collaboration between ICL and Lavie Bio, focusing on bio-stimulant solutions for crops under various environmental stresses.
Amit Noam, CEO of Lavie Bio, stated, "Today marks a significant milestone in Lavie Bio’s journey." He emphasized that the merger with ICL’s expertise would accelerate the development of innovative agricultural solutions for farmers globally.
Ofer Haviv, CEO of Evogene, expressed his confidence that integrating Lavie Bio’s activities into ICL would significantly advance the ag-biologicals sector and drive impactful innovations in agriculture.
Lavie Bio leverages Evogene’s MicroBoost AI tech-engine for the discovery and optimization of bio-stimulant and bio-pesticide products. Evogene, through its subsidiaries and strategic partnerships, focuses on developing life-science-based products using its technological engines, which include MicroBoost AI for microbes, ChemPass AI for small molecules, and GeneRator AI for genetic elements.
This press release contains forward-looking statements regarding the expected completion of the acquisition and its potential impact on the ag-biologicals field. These statements are subject to risks and uncertainties and actual results may differ. Investors should note that Evogene’s stock has experienced significant volatility, with InvestingPro data showing the stock is currently trading at just 11% of its 52-week high of $9.00. For comprehensive analysis and detailed financial metrics, investors can access Evogene’s full Pro Research Report, available exclusively to InvestingPro subscribers.
The information reported is based on a press release statement.
In other recent news, Evogene Ltd reported its financial results for the fourth quarter of 2024, showing a mixed performance. The company achieved an earnings per share (EPS) of $0.06, significantly surpassing the forecasted -$0.6, which marks a considerable improvement from previous periods. However, Evogene’s revenue for the quarter was $1.6 million, falling short of the expected $5.4 million, which raises concerns about its sales strategy and market penetration. For the entire year of 2024, Evogene’s total revenue reached $8.5 million, an increase from $5.6 million in 2023, largely driven by its collaboration with Bayer and increased seed sales from its subsidiary, Kastera. The company’s operating loss for the year decreased to $22.2 million from $26.5 million in 2023, reflecting improved cost management. Additionally, Evogene announced a strategic focus on AI-powered drug discovery, with plans to leverage its computational biology expertise to enhance financial stability through increased revenues and potential subsidiary exit events. In corporate developments, Nir Nimrodi has been appointed as the new Chairman of the Board, succeeding Sarit Firon, who will continue as a board member. These recent developments indicate Evogene’s ongoing efforts to optimize its operations and explore new revenue streams.
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