A unit of Newport Beach-based American Vanguard Corp. (NYSE: AVD) invested in Clean Seed Capital Group Ltd. (TSX-V: CSX), based in Canada.
The two companies said the up-front investment was $5 million for a minority stake and includes royalty-bearing global licensing on patented variable-rate technology Clean Seed owns.
American Vanguard makes chemicals and agricultural products; Burnaby, B.C.-based Clean Seed develops, makes and sells seeding equipment. The investment came via Vanguard’s wholly owned AMVAC Chemical Corp.
American Vanguard shares rose 1% to $14.10 in recent trading for a $425 million market cap.