Escagenetics Corp. has entered into a partnership with a SaudiArabian agricultural and horticultural company to mass-produce elite varieties of date palm in great demand in theMiddle East.
I.M. Boumarah and Sons will contribute more than $5 million incapital investment for laboratory buildings and greenhouses.IMB has also agreed to purchase 35,000 shares of Escagenetics'stock in a related transaction. As of last Dec. 31, the companyhad 4.9 million shares outstanding.
Escagenetics will contribute micropropagation technology, datepalm cultures, lab design, equipment, technical support andservices.
IMB and the San Carlos, Calif., company (ASE:ESN) will have anexclusive license from the Kingdom of Saudi Arabia to producedate palms propagated by tissue culture.
The partnership is expected to generate significant royalties forEscagenetics beginning in 1995.Escagenetics' stock closed Friday at $7.88, up 13 cents a share.
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