DJ Inqo Investments Limited Investment in Kentegra Biotechnology Holdings LLC
RNS Number : 0502Z
Inqo Investments Limited
09 January 2020
Investment in Kentegra Biotechnology Holdings LLC
Inqo Investments Ltd, the NEX Exchange-listed ('INQO') social impact investment company today announced an investment in Kentegra Biotechnology Holdings LLC, a Kenyan based biotechnology company producing the natural insecticide pyrethrum.
Kentegra is a Kenyan based biotechnology firm owned by the US holding company, Kentegra Biotechnology Holdings LLC. Kentegra produces pyrethrum, a natural active ingredient from the chrysanthemum flower, for use in the home biocide, agricultural and pharmaceutical pesticide markets. The chrysanthemum flowers must be grown in very specific conditions in order to produce pyrethrum - these conditions are found in only a few places around the world, predominantly East Africa (Uganda, Rwanda, and Kenya) and Tasmania. With ideal growing conditions, Kenya was once the largest producer of pyrethrum in the world until poor management and synthetic alternatives led to a major decline in the nationalised industry in the early 2000s. In 2013 the Kenyan government liberalised the pyrethrum sector in a concerted effort to revive the industry and support the growing worldwide 'organic' movement. Kentegra is one of the six companies in Kenya with a licence to produce pyrethrum.
The current natural or 'organic' pyrethrum market is constrained by supply due to the specific conditions required to grow and produce pyrethrum. Kentegra has established relationships with buyers in Europe, Africa and Asia. Currently demand is predominantly from the home biocide market. However, with synthetic pesticides for agricultural use increasingly regulated due to their negative environmental impact, this market is also likely to expand.
Chrysanthemum flowers grown for pyrethrum can be harvested every two weeks for nine months of the year. Pyrethrum produces a higher and more regular income for farmers than other staple and cash crops such as corn, beans, potatoes and cabbage. Kentegra's farmers earn four times more revenue per acre growing pyrethrum than any other crop - a potentially life changing increase in income. Kentegra currently has 3,000 farmers contracted with the aim of reaching ten times this number over time.
Kentegra tracks a number of metrics such as education, standard of housing and access to electricity to measure social impact.
Inqo Investments Limited Chris Bertie, Chief Financial Officer and Tel: +27 (0)83 6254069 Chief Operating Officer Shard Capital Partners LLP ISDX Corporate Adviser and Broker Dr Wang Chong Tel: +44 (0)20 7186 9948
About Inqo Investments Limited
'INQO' (www.inqo.co.za) is a South Africa-based social impact company listed on the London ISDX Growth Market. It makes strategic acquisitions and investments in businesses designed to tackle poverty and provide employment, products and services to the poor in Low Income Countries (LICs).
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(END) Dow Jones Newswires
January 09, 2020 02:00 ET (07:00 GMT)