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BEIJING - Origin Agritech Ltd. (NASDAQ:SEED) has entered into a patent license agreement with Shandong Shunfeng Biotechnology for the Cas-SF01 gene editing tool, the agricultural technology company announced Monday. The micro-cap company, valued at just $11.4 million, appears undervalued according to InvestingPro analysis, despite facing significant financial challenges with a weak overall health score.
The agreement provides Origin with long-term access to IP-protected gene editing technologies for corn breeding research and development. The company aims to use this technology to develop corn varieties with optimized leaf angles that can be planted at higher densities. This strategic move comes as Origin reported $12.9 million in revenue over the last twelve months, though with declining growth of -21.44%.
The partnership builds on Origin's collaboration with China Agricultural University, where researchers identified two regulatory genes controlling corn leaf angle—ZmRAVL1 and ZmDWF4. Using Shunfeng's gene editing platform, they developed edited corn induction lines that optimize leaf angles to create what the company calls "smart plant architecture."
"These edited induction lines enable precise and efficient improvement of plant architecture in elite germplasm," said Bill Deng, VP and Head of R&D at Origin Agritech, according to the press release.
The modified corn varieties feature compact upper leaves and open lower leaves, which the company says improves field light interception and airflow, potentially increasing yields through higher planting density.
Origin has initiated biosafety assessment for the edited lines, with final certification estimated to require 1-2 years due to regulatory procedures. The agreement also facilitates biosafety approval for Origin's current and future gene editing projects using its Hi-3 one-step gene-editing method.
The company states this development contributes to its breeding innovation system with proprietary intellectual property while supporting China's agricultural technology advancement and food security goals.
In other recent news, Origin Agritech Ltd. has obtained a new crop seed production and operation license from the Beijing Municipal Bureau of Agriculture and Rural Affairs. This license allows the company to produce, process, package, wholesale, and retail corn seeds, enhancing its operational capabilities in China. Additionally, Origin Agritech successfully re-entered the Northeast China agricultural market, showcasing new corn varieties such as Jinqiao 8, Jingke 4580, and Jingke 317, which have been nationally approved for their high yield potential and disease resistance.
The company also secured approximately $3.88 million in new investments through agreements involving CEO Weibin Yan and institutional investors. CEO Weibin Yan personally invested $2.4 million, acquiring 2 million ordinary shares, while additional funds were raised through a modified securities purchase agreement. Furthermore, Origin Agritech has adjusted its existing securities sale agreement to sell 1,234,300 ordinary shares at $1.20 per share, resulting in an aggregate consideration of $1,481,250. These shares will be issued as restricted stock, exempt from the Securities Act of 1933.
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