Ceres to Expand Product Development in Sorghum and Sugarcane Under Brazil's
Agricultural Innovation Program
THOUSAND OAKS, Calif., July 28, 2014
THOUSAND OAKS, Calif., July 28, 2014 /PRNewswire/ -- Ceres, Inc. (Nasdaq:
CERE), an agricultural biotechnology and seed company, today announced that
the company will enhance its product development programs in Brazil and expand
its development activities in biotech traits for sorghum and sugarcane over
the next four years. The programs will now be funded in part under the
Brazilian government's PAISS Agricola initiative, which promotes agricultural
innovations in sugarcane as well as other energy crops.
Under the PAISS program, Ceres is eligible for a multi-year credit facility of
up to 75.4 million reais, or approximately US$34 million, at a
government-subsidized, preferential interest rate. Receipt of the loan will be
subject to customary diligence, documentation and closing conditions, and will
require guarantees to be provided by or obtained by Ceres. The company was
also awarded 10 million reais, or approximately US$4.5 million, in the form of
non-repayable grants to be drawn over four years. Ceres expects to complete
the application and grant award process by the end of calendar year 2014.
"We were pleased to be selected to participate in this prestigious
agricultural innovation program and to receive this clear endorsement for
utilizing sorghum and biotechnology in sugarcane to increase production of
ethanol and biopower," said Paul Kuc, Chief Financial Officer of Ceres. "The
funding will allow us to accelerate our product development programs in Brazil
and will extend our capital resources as we continue to develop the commercial
markets for our technology and products."
Andre Franco, General Manager of Ceres Sementes do Brasil, indicated that
embracing innovations has been the cornerstone of Brazil's success in
agricultural commodities. In this case, Brazil can not only adopt new
technologies, but also take the lead in developing them domestically.
"Increasing yields and providing greater yield stability from season to season
represents a key opportunity for Brazil to strengthen its global position in
sugar and ethanol production," said Franco. "We look forward to working with
our mill customers and other industry leaders to evaluate and bring new
products to market that can increase efficiencies and lower the cost of
The PAISS project is jointly managed by Brazil's national development bank,
BNDES, and by the government's research financing agency, FINEP. The
competitive application process included over 60 proposals. Ceres was one of
only five organizations to be selected for both a loan and a grant.
Ceres, Inc. is an agricultural biotechnology company that markets seeds for
energy crops used in the production of renewable transportation fuels,
electricity and bio-based products. Ceres markets its products under its Blade
brand. The company also licenses its technology and biotech traits to other
CERES FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. All statements, other
than statements of historical facts, including statements regarding Ceres'
efforts to develop and commercialize its products, anticipated yields and
product performance, status of crop plantings, short-term and long-term
business strategies, market and industry expectations, future operating
metrics, and future results of operations and financial position, including
anticipated cost savings from our plan to align expenditures, are
forward-looking statements. You should not place undue reliance on these
forward-looking statements because they involve known and unknown risks,
uncertainties and other factors that are, in some cases, beyond Ceres'
control. Factors that could materially affect actual results can be found in
Ceres' filings with the U.S. Securities and Exchange Commission. Ceres
undertakes no obligation to update publicly, except to the extent required by
law, any forward-looking statements for any reason after the date the company
issues this press release to conform these statements to actual results or to
changes in the company's expectations.
SOURCE Ceres, Inc.
Contact: Ceres, Inc., Gary Koppenjan, (805) 376-6546, email@example.com
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