OptiCept enters agreement with Florensis to evaluate OptiBoost technology for ornamentals

Today, on February 23rd, OptiCept announced its partnership with Florensis, a key player in the international ornamental horticultural sector. Having successfully secured commercial contracts in forest cuttings previously, OptiCept will now evaluate its OptiBoost technology for three months in the context of ornamental cuttings through this agreement.

Florensis operates production and breeding facilities across the Netherlands, Germany, Portugal, Kenya, and Ethiopia. The agreement aims to assess OptiCept's vacuum impregnation technology, OptiBoost, with the goal of enhancing the operational efficiency of vegetative propagation for ornamental plants. Looking at the whole market, OptiCept estimates that approximately two billion cuttings are produced annually to propagate ornamental plants, which is in line with its previous communications.

A step in right direction for commercialization of ornamental cuttings

We believe that this collaboration aligns with OptiCept's strategy of partnering with established industry players, facilitating a smooth transition from development to market. While specifics regarding any fees for the evaluation period are undisclosed, OptiCept typically charges a fee ranging from approximately 0.7 to 1.0 MSEK for evaluation agreements. Generally, this fee grants the potential customer access to the machinery for testing on a specified quantity of cuttings. While the total addressable revenue for ornamental cuttings is large, some 500 MSEK annually, capturing the entirety seems unrealistic in our view. Nonetheless, this agreement signifies progress towards the commercialization of ornamental cuttings. Given that it is only an evaluation agreement, we do not change our estimate or recommendation.