“Clean Seed Capital: The iPhone Of Agriculture” is an article written and published by Tom Wallace, Editor, Founder and CEO of The AgLetter – Agricultural Investment Analysis. In the article Mr. Wallace aggressively makes the case for Clean Seed’s market cap to exceed $100 million by the time it’s acquired. The Company’s market cap is currently just over $14 million.
Mr. Wallace shared his insights on the dilemma faced by today’s farmers – balancing sustainability, managing costs, improving yields and ultimately profitability; based on the evolution of agricultural equipment from the current seeder technology (over 30 years old) to Clean Seed’s CX-6 SMART Seeder (disruptive precision agriculture technology).
As a backgrounder, the article gives some history on “precision agriculture”. This technology burst into the landscape in the mid1990’s. Manufacturers and distributors have been developing and implementing various digital technologies to help farmers maximize their yields and reduce their input costs. The need for more advanced technology focused on data collection, wireless communication, advanced sensors and intelligent machine control has grown exponentially, and manufacturers and distributors are in a race to see who can capitalize on this potential. Despite having some farmers who still adhere to “traditional” farming practices and are reluctant to embrace changes in the agriculture technology, there is also a growing segment of farmers who are receptive to innovative technologies such as “precision agriculture.”
Here is the article’s summary of Clean Seed as an investment opportunity:
Clean Seed’s CX-6 Smart Seeder is like the iPhone of the agricultural sector. The technology is revolutionary, patented, and will be looked back on as a pivotal point in the evolution of agricultural equipment. The opportunity to gain a substantial return on investment within a relatively short time period makes Clean Seed Capital Corp an excellent investment for the educated speculator.
Here are some investment key points mentioned in the article:
- Strong management with directly applicable experience in farming and agriculture
- Patented technology with a 20 year monopoly; attractive 40% profit margin on the CX-6 Seeder; tight share structure – Fully Diluted: 45,828,126
- Two issued patents – opener technology and metering 17 patent claims pending for the CX-6 Smart Seeder – world wide WIPO Manufacturing agreement
- Two distribution agreements; huge inside ownership – 40%; Revolutionary technology; Family has $3 million invested
To view the AgLetter article, please click here.
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