OptiCept explores new partnership opportunity in cut flowers

OptiCept announced on May 21 that it has entered into an agreement with Chrysal International, a key player in flower care products, to explore the possibility of forming a partnership focused on cut flower technology. If a partnership is established and proves successful, we believe it could help OptiCept achieve greater commercial scale in the cut flower industry. However, we note that this project is in its early stages.

According to the company, Chrysal is a leading innovator in the floriculture industry with operations in 14 countries and production facilities in five countries. Chrysal provides solutions for the treatment of cut flowers throughout the value chain, from post-harvest treatment at the grower, through transport and retail, to flower food at home, all aimed at improving quality and reducing waste. The objective of the agreement is to evaluate OptiCept's vacuum impregnation technology, OptiBoost, to improve the vase life of flowers. Chrysal will evaluate the OptiBoost process at its research centers over a three-month period. The results of the evaluation will form the basis for a potential partnership.

Positive step toward wider commercialization of cut flower technology

We believe that this potential collaboration aligns with OptiCept's strategy of partnering with established industry players to gain access to extensive global networks and distribution systems, increased visibility and credibility, and faster market penetration. Our current estimates include approximately 14 MSEK in sales within the PlantTech segment in 2024. This potential partnership, if successful, could support our growth estimates. However, for OptiCept to meet these estimates, the company must also increase volumes in existing projects such as APH as well as CMPC and Aperam within cuttings. Given the early stage of this potential partnership, which is currently only in the evaluation phase, we are not making any changes to our estimates at this time.