An Oxford University spin-out developing a new generation of weed-resistant herbicides has begun fundraising for $40 million (£32 million) from potential backers.
Sky News understands that Moa Technology, which was co-founded by Professor Liam Dolan, director of plant sciences at the world-renowned university, is launching a Series C funding round.
Moa has already raised $59m (£47m) from high-profile investors including Oxford Science Enterprises (OSE), BGF and Lansdowne Partners, the Mayfair-based hedge fund.
Its existing shareholders appear to support the new fundraising plans, although potential new investors will also be contacted.
Moa is developing active ingredients that can break down weed resistance to herbicides – a major challenge for the global agricultural sector – in a bid to gain approval from regulators.
Similar to the growth of antibiotic resistance in humans, resistant “superweeds” are capable of killing a farmer’s entire crop, putting food security at risk.
Photo: Moa
Industry data suggests farmers spend up to $40bn (£31.2bn) a year on herbicides, and a further $25bn (£19.9bn) on resistant seeds to weeds.
However, a number of high-profile weedkillers, including Bayer-owned Roundup, have sparked multibillion-dollar lawsuits over their alleged implications on human health.
Moa has developed more than 70 “modes of action”, and several of the company’s products are undergoing advanced field trials in six countries, including the UK, US and France.
According to Moa, these products could, provided they gain regulatory approval, be commercially available by the end of the decade.
The OSE-backed spinout has entered into a commercial agreement with Nufarm, an Australian agrochemical company, to further develop one of its products.
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A spokesperson for Moa said it intends to apply a royalty model similar to that of ARM Holdings, the chip designer, in the semiconductor space, meaning it would focus on research and development and license its products to global manufacturers and distributors.
The company is led by Managing Director, Dr. Virginia Corless, who has extensive experience in commercializing sustainable solutions in the energy, water and agriculture sectors.
An update on Moa’s fundraising progress is likely in the first half of next year.