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spk02: Ladies and gentlemen, thank you for standing by. Welcome to Evogen's first quarter 2023 results conference call. All participants are present in listen-only mode. On management's formal presentation, instructions will be given for the question and answer session. For operator assistance during the conference, please press star zero. As a reminder, this conference is being recorded May 18th, 2023. Before we begin, I would like to caution that certain statements made during this earnings conference call by Evogen's management will constitute forward-looking statements that relate to future events, risks, and uncertainties regarding business, strategy, operations, and future performance and results of Evogen. I encourage you to review Evogen's filings with the U.S. Securities and Exchange Commission and read the note regarding forward-looking statements in today's earnings release, which states that statements made in the earnings release and in a similar way on this earnings conference call that are not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For example, Evagen is using forward-looking statement in this call when it discusses the results of Biomica's Phase I clinical trial for its immuno-oncology microbiome drug candidate. BMC 333's progress to Phase I clinical trials, BMC 426's advance in its preclinical trials, Labibio's expansion of sales into Canadian and European markets, an introduction of new crops like small grains and oilseeds, registration of Labibio's biofungicide for fruit rots and powdery mildews with the U.S. EPA, and LAV321's further field trials, potential collaboration of AgPlanus with respect to its APH1 candidates, Achievement of first milestone in AgPlanus' collaboration with Corteva. The nomination of new protein targets and achievement of greenhouse readout in its wheat blotch fungicide program. Canonic's goal to expand second-generation product sales and receipt of royalty payments from variety licensing. Corteva's territorial expansion and increased sales. The potential commercial value of the product of the AgSeed Division's grant program. All forward-looking statements made herein speak only as of the date of the announcement of results. Many of the factors that impact whether forward-looking statements will come true are beyond the control of Evogen and may cause actual results to differ materially from anticipated results. Evogen is under no obligation to update publicly or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as otherwise required by law. We expressly disclaim any obligation to do so. More detailed information about the risk factors potentially adversely impacting our performance can be found in our report filed with the U.S. Securities and Exchange Commission. That said, I would now like to turn over the call to Rachel Pomeran, Evergen's Head of Investor Relations. Rachel, please go ahead.
spk03: Welcome to Evergen's earnings call in the first quarter of 2023, and thank you all for joining us. My name is Rachel, and I'm the new investor relations director at Evogen. I'm excited to join this innovative team and help drive growth through solid investor relationships and effective communication. Starting the call today is the president and CEO of Evogen, Ofer Khabib, who will provide insight into our business model and the significance of our technological engines and the life science industry. He will also provide updates on Evogen subsidiaries. Also joining offer on today's call are Dr. Nir Harbel, Evogen's Chief Product Officer, who will be discussing some of the recent improvements we have made to Evogen's AI tech engines. Dr. Elran Haber, the CEO of Biomica, Evogen's subsidiary, focusing on developing drugs based on the human microbiome, will follow offer's review and elaborate on Biomica's activity and achievements. Our CFO, Yaron Eldad, will later provide a financial summary and update. But first, it is my pleasure to introduce our main speaker, the President and CEO of Evogen, Ofer Haviv.
spk07: Thank you, Rachel, and good day, everyone. Today, I will review Evogen's activities and recent accomplishments and provide you with an update on potential catalysts expected in the near future. I will also discuss some of our subsidiaries' recent accomplishments, leveraging our technology and demonstrating the power of the value of our AI-driven tech engines underlying the product development process. As you know, Avogen has been using its computational predictive biology platform, the CPB, to direct and accelerate the discovery and development of life science-based products. The CPB is the foundation of our three tech engines. Microboost AI supports the discovery and development of microbe-based products. Campus AI supports small molecule-based products. And Generator AI supports products based on genetic elements. Our AI-driven tech engine has addressed the main challenge in life science-based product development. finding the winning candidate or candidates out of that number of possible prospects that addresses a complex myriad of criteria to reach successful commercial products. Many potential candidates exist when identifying a specific microbe, gene, or small molecule. Our AI tech engines help to find that needles in high tech in a way and within a time frame and cost that our competitors or partners may not be able to accomplish, and most importantly, increase the probability of success. Around each of our three tech engines, Evergent has established a business ecosystem, including independent subsidiaries or strategic collaborations. This focuses on developing products for a specific lifetime market segment, benefiting from the tech engines as their main competitive advantage. I am pleased to introduce Dr. Nir Arbel, Avogen's Chief Product Officer, who is leading the development of our AI tech engine, to share with you more information and the latest AI tech engine development accomplishment. Nir?
spk01: Thank you, Ofer. As Ofer mentioned, our AI-driven tech engines are designed to serve as a powerful platform for directing and accelerating the discovery and development of life science-based products. During the past year, we invested significant efforts in creating a user-friendly dashboard as the tech engine's primary interface, facilitating seamless navigation across multiple applications within the discovery and development process that the tech engine supports. These apps are sophisticated software applications internally developed to serve two purposes. First, they enable predictive outcomes by leveraging advanced algorithms supporting the desired product definition to narrow an extensive range of options to a practical number of high potential candidates. Second, They integrate diverse data sources, both internal and from the public domain, to facilitate informed decision-making in the R&D processes. We have recently invested in improving our AI tech engines infrastructures, enhancing their efficiency and appeal to prospective partners, and I'll now go into more detail. I will start by describing the improvements made in MicroBoost AI tech engines. which enables the discovery and development of micro-based products for various industries such as healthcare and active. We have expanded the engine's usability and statistical capabilities, mainly targeting to improve our ability to translate the microbial gene to its functions. For example, by revamping one of our apps named Corvac, Levy Bio quickly identified several new genes related to bacterial shelf life. enabling better prediction for commercial attributes early in the discovery process. Moving on to Kempass AI Tech Engine, which facilitates the discovery and development of small molecule-oriented products, notable enhancements have been implemented. Kempass AI has undergone a substantial upgrade, predominantly focusing on augmenting its automation, scalability, and speed. These improvements allow us to amplify the volume of projects undertaken annually. thereby enabling more efficient collaboration with potential partners. This aspect holds particular significance in the light of anticipated upsurge in AgPlanus' project portfolio, as well as Evogen's intention to expand the use of Kempass AI into the pharma market segment. In conclusion, I look forward to updating you on our ongoing journey of continuous improvements, focusing on enhancing the robustness and attractiveness of our tech engines to cater the needs of potential partners seeking to address a wide range of life science discoveries. Our dedicated efforts aim to refine and expand our capabilities, ensuring that we remain at the forefront of technological advancements and providing exceptional solutions for partners in the life science industry. Back to you, Ofer.
spk07: Thank you, Nir. Before I review the impressive recent achievements of our subsidiaries, I want to update on potential catalysts we see at the Evogen Group in the near future. Evogen aims to enter into business relationships in new areas of activity, not covered through our subsidiaries, for product development leveraging our tech engines. Technological improvements in our AI tech engines strengthen our offering to potential partners and to our subsidiaries. Meeting the defined milestones by our subsidiaries as listed in the new Avogen presentation published today, thus demonstrating the impact of our AI tech engines and the value of the subsidiaries themselves. And raising external funds at the subsidiary level to fund the subsidiary's activity and demonstrate their inherent value as well. With respect to our five subsidiaries, They have accomplished multiple achievements from the beginning of this year, and we have several upcoming milestones which we believe are significant value creators. I want to start with Biomica, which focuses on developing microbiome-based therapeutics for human health, leveraging MicroBoost AI. I am delighted to announce that the $20 million financing round, led by the $10 million investment from Shanghai Healthcare Capital, has closed. The deal was done at a post-money valuation of $50 million. This external and independent endorsement of Biomica validates our belief in Biomica's long-term potential. For more details on this investment, and Biomica's activity and achievement, we will later hear Dr. Elran Heber, Biomica's CEO. Let's now move to LaviBio. LaviBio leverages Evogen's MicroBoost AI tech engine to develop next-generation agri-biological products. In addition to Evogen's majority ownership, we are happy to emphasize that LaviBio has two additional major shareholders, Corteva, a New York-listed multinational agtech giant, and ICL, a New York-listed global mineral and agtech company, which last year made a $10 million investment into La Vie Bio under a safe agreement. In addition to equity investment by these two giants, ICL and Corteva, they also conduct a collaboration with La Vie Bio toward novel agbiological product development. I am delighted to announce that last month, Mr. Amit Noam joined Labib Bio as its new CEO. He is an highly accomplished professional with expertise in leading teams and executing successful commercialization strategies in the agtech and healthcare sectors. I look forward with excitement to working together with Amit toward La Vie Bio's success. With respect to La Vie Bio's achievements this quarter, I would like to start with its first product on the market, Tribus. Tribus is a microbiome-based seed treatment that enhances yield in North America's 10 million acres spring wheat market, offering three to four additional bushels per acre and significant ROI for farmers. Survivors have the potential to expand to additional crops in the future. We are currently seeing high demand far exceeding our supply. With our manufacturing partner, we have gained significant experience this season, overcoming various production challenges as we increase capacity. The experience has set us up well for the future and will enable us to ramp production better for the expected jump in sales for next year's season. Looking ahead, we aim to broaden sales into Canadian and European markets and add further crops such as small grains and oilseeds. La Vie Bio's biopesticides program continues to advance. In October 2022, we submitted the registration package to the United States EPA for LAB 311, our novel biofungicide targeting fruit warts and powdery medius, a final step before commercialization targeted for 2024. The initial target market is for the treatment of GRIPS, a $200 million market. Labibio's second biofungicide product in the pipeline is Lab321 against downy medius, solving a significant challenge as traditional agriculture chemicals are increasingly banned. The results from recent trials are promising, and in 2023, we plan further field trials. The initial target market is for the treatment of GRIPS, a $500 million market. Labibio's significant achievements demonstrate the power of Evogen's technology and its micro-boost AI tech engine. Let's now move on to AgPlanus. AgPlanus aims to discover and commercialize next-generation mode-of-action crop protection products, including herbicides, insecticides, and fungicides, leveraging the campus AI tech engine. Major alchemical companies, such as BSS, Bayer, Corteva, and Syngenta, dominate today's crop protection industry. Still, they look to smaller agtech companies like Agplanus to develop new mineral molecules candidates, and Agplanus is exploring partnership with these major industry players. Herbicide-resistant weeds today are flourishing. There has not been a new commercial herbicide with a novel mode of action for over 30 years, and Agplanus looks to change that. Agplanus is seeing interest in its product pipeline, especially our most advanced candidate, APH1, a novel herbicide with a broad weed control spectrum at commercial doses rates. We hope to update in the future on a strategic collaboration based on APH1. Since 2020, Agplanus has worked closely with Corteva to develop new herbicides. Agplanus discovers and optimizes the candidates while Corteva conducts testing and product development. We hope to update on progress in this collaboration in the future as well. Our next subsidiary, Canonic, is focused on developing best-in-class medical cannabis products, leveraging Evogen's generator AI tech engine. Currently, Canonic is advancing two business models, using its unique capabilities to rapidly develop elite medical cannabis varieties, addressing the changing demand of the medical cannabis market. The first, a direct sales model, in which Canonic is responsible end-to-end for all expenses related to the product development, cultivation, and sales, with the end product to be introduced under the Canonic brand. In this case, the company will generate revenue from the sales of the end product to pharmacies. The second is the royalties model, in which Canonic licenses its elite varieties to partners. while all other expenses related to the cultivation, production, marketing and sales are covered by the partner and the end product will be introduced under the partner's brand. In this case, the company will generate income from royalties to be paid by the partner from its own revenue. In line with its direct sales model, Canonic recently launched six new second-generation products in Israel as part of its hybrid series. In line with our royalties model, last week we announced that leading Israeli cannabis grower Plantis licensed two of our varieties for Israeli sales. Canonix's main goal for the near term is to grow our second generation cannabis sales in Israel, launch our third generation product series, and increase license sales while significantly reducing company expenses. Let's now move to our last subsidiary, Castera, offering an integrated solution to enable large-scale commercial cultivation of castor beans utilizing Evogen generator AI tech engine. This integrated solution includes proprietary castor seed varieties supported by agrotechnical know-how and novel mechanical harvesting and de-hulling machines to address global demand for stable castor oil supply. Aceria's castor seed varieties are designed to maximize water efficiency and provide drought resistance, allowing for cultivation on marginal, non-herbal land with minimal irrigations. Castera's advanced castor varieties are developed using our generator AI tech engine. Castera's current commercial activity is mainly in Latin America and Africa with strong business partners. In the last six months, we have seen an increase in interest in using castor oil as a veggie source for biofuel. This led to a significant agreement signed at the beginning of this year with the major European best global energy company, with Castera supplying its elite culture varieties and growth protocol know-how. The culture market, particularly culture for biofuel, is rapidly growing and gaining attention, and Castera is well positioned to be a key player in that market. In the past few years, we have not emphasized Castera's activity when describing the Evogen group. But now, with the growing demand for castor oil, we expect that castella will become a valuable contributor to Evogen's continued success and shareholders' value. Last but not least, as disclosed last week, our Axis division secured a €1.2 million EU grant to develop oilseed crops with an enhanced CO2 assimilation and drought tolerance. The program known as the EIC 2022 Horizon Program supports business addressing climate-focused and sustainable crop development. The overall budget under the program is €2.5 million, shared between the program partners. This follows a successful 2021 proof of concept we took part in with the EU Futura Agriculture Consortium. The program aimed to create canola and rapeseed seeds that absorb more atmospheric CO2, require 20% less water, and use less fertilizer, mitigating climate change and conserving water resources. The potential commercial value of such products for the food, animal feed, and sustainable energy industries is significant and is a unique proposition in today's market. In summary, the activity of Evogen and its subsidiaries are progressing well. From financial perspective, we closely monitor the current difficulties in the financial market. We are consistently advancing our strategy and ensure we remain self-sufficient financially for the foreseeable future. On Evogen's balance sheet, we have consolidated $29 million for March 2023. This amount does not include the $10 million Biomica received from SHC investment in April 2023. I know that LaviBio and Biomica, which recently have raised funds from strategic and financial investors, are now self-funding and do not require additional financial support from Evogen. Our real-time target is that each subsidiary will have its own financial resources to support its activity until its success. At the same time, at Evogen, as a major shareholder, we will continue to play a significant role in maintaining and building our tech engine, providing the subsidiaries competitive advantage. Our long-term plan is to realize value by spinning out or IPOing one or more of our subsidiaries, depending on the market and other conditions, and subject to SEC and other rules regarding any such transaction. The recent external investment in LaviBio and Biomica, each with valuation well in excess of Evogen's current market cap, validate the significant inherent value within our subsidiaries, and testify to the value initially created by Evogen's AI tech engine. We hope to announce additional such success in the future. I now invite Dr. Elran Heber, Biomica's CEO, to join the call and elaborate on Biomica's achievement. Elran?
spk06: Thank you, Ofer. I'm thrilled to update you that Biomica made a significant progress last quarter with the closing of a substantial financing round led by Shanghai Healthcare Capital. SHC's investment is a vote of confidence in Biomica's capabilities and the microbiome-based therapeutic space. We're averaging 20 million was invested in Biomica in this round. valuing us at $50 million. Dr. Jing Bao, a partner at Shanghai Healthcare Capital that received her PhD from the Weizmann Institute of Science in Israel, joined Biomica's board of directors. The financing round was signed in December, and in April it was officially closed after all regulatory approvals were obtained. This investment serves as an external and independent endorsement of Biomica, and it marks a significant milestone for us and strategically positions us for growth in the years ahead. Last week, we had the privilege of inaugurating our new lab and office space. Establishing these facilities is essential to our company's growth and development. We are excited about their possibilities, enabling us to enhance our capabilities further and to support our research and development. Before moving forward, I want to update you on our recent programs and provide insights into our plans for the future. As you may know, Biomica is currently focused on three proprietary therapeutic programs. The most advanced program is in the immune oncology, BMC-128. BMC-128 is a rationally designed live therapeutic consortium product. Last June, we began our Phase I POC clinical trial in Israel for BMC-128 to treat three types of solid tumors in humans. The Phase I trial is designed to evaluate safety and tolerability of BMC-128 in combination with an anti-PD-1 checkpoint inhibitor, Obdivo, in refractory cancer patients. We have enrolled several patients in the study and aim to complete the trial later this year. We plan to file an IND with the FDA late 2023 or early 2024 and intending to begin our Phase 1B-2A trial for BMC-128 in the U.S. in the first half of 2024. Our second microbiome therapeutic program focuses on inflammatory bowel disease, or IBD, where the lead candidate is BMC-333, a rationally designed, optimized consortium of four live bacterial strains. In several preclinical animal studies, BMC-333 significantly reduced inflammation and tissue damage. We aim to start the scale-up development process and GMP production of this product as part of the preparation for our expected clinical trial in the U.S. in 2024. It is important for me to emphasize that MicroBoost AI tech engine has been instrumental in supporting the discovery process for our LBP programs. and we eagerly anticipate future improvements. A third program focused on IBS, in which we completed the discovery phase for BMC 426, which is now beginning, being evaluated in practical studies. The practical results are encouraging, and we will update you as we advance. That ends my summary, and the owner of that will now provide the financial update. Yaron?
spk04: I will now give the financial overview. Evergen maintains a solid financial position with approximately $28.8 million in consolidated cash, cash equivalents, and marketable securities as of March 31, 2023. This amount does not include the $10 million investment in Biomica by SHC that was received during April this year Approximately $8.2 million of Evergent consolidated cash as of March 31st, 2023 is appropriated to its subsidiary, La Vie Bayeux. We do not have any bank debt. During the first quarter of 2023, the consolidated net cash usage was approximately $6.6 million or approximately $5.1 million excluding La Vie Bayeux. Looking ahead to 2023, excluding any impact from foreign exchange differences and the change in market value from market world securities, we expect our consolidated cash burn rate to be between $27 to $29 million. Excluding the use of cash by Biomica all of eBio, we expect our consolidated cash burn usage during 2023 to be between 12 to $14 million. I want to highlight some specific items on the P&L. Revenues for the first quarter was $641,000 compared to $237,000 in the same period the previous year. The revenue increase was primarily due to revenues recognized with the collaboration agreement of Evergen subsidiary Agplanos with Corteva and from sales of Canonix medical cannabis products in Israel. R&D expenses for the first quarter of 2023, which are reported net of non-refundable grants received, were $4.8 million compared to $5.6 million in the same period in the previous year. The decrease is primarily due to decreased R&D expenses in La Vie Bio due to the commercialization of its inoculant product and a decrease in Canonics personnel expenses. Sales and marketing expenses were approximately $800,000 for the first quarter of 2023 compared to $908,000 in the same period last year. The main contributor to this decrease in expenses was a reduction in personnel expenses at Canonic. General and administrative expenses were $1.5 million in the first quarter of 2023, compared to $1.6 million in the same period in the previous year, Operating loss for the first quarter of 2023 was $6.8 million compared to an operating loss of $8.1 million in the same period in the previous year. The decrease in the operating loss was due to the above mentioned. Net loss for the first quarter of 2023 was $7 million compared to a net loss of $9.1 million in the same period in the previous year. With that, Ofer and I would like to open the call for any questions you may have. Operator.
spk02: Thank you. Ladies and gentlemen, at this time we will begin the question and answer session. If you have a question, please press star 1. If you wish to cancel your request, please press star 2. If you are using speaker equipment, kindly lift the handset before pressing the numbers. Your questions will be pulled in the order they are received. Please stand by while we pull for your questions. The first question is from Brian Wright of Ross. Please go ahead.
spk10: Thanks. Good morning, or good afternoon, I should say so for you all. A couple questions. One of them started off with just you mentioned on Biomica that there were a couple of patients enrolled in BMC-128. Just wanted to get a little more, you know, does that mean like two or three, or just a little more authority on that?
spk07: Erwan, can you take this question? Yeah, sure.
spk05: So thank you for the question. Yeah, as I mentioned, we involved a few patients already. Keep in mind that the entire phase one study is estimated to be around 12 patients. So we have enrolled, I would say, approximately a handful of patients so far. As you may remember from previous reports, our main Objective is to enroll patients that are progressing on three types of solid tumors, either non-small cell and cancer, RTC patients, or melanoma. All of them previously failed with immunotherapy, and just after failing previous treatments, they can be enrolled into our study. Okay, great.
spk10: So a handful of that. Okay. Sounds great. Sounds like you're really kind of on track there. We need to just... One quick question on the Thrivus. Given the supply-domain dynamics, is that something you've considered maybe increasing the price of, or is it just a matter of it's new to the market, the price is the price, and we'll leave them running for next year?
spk07: The sound wasn't very good, and I'm not sure that we understand the question, but with respect to Thrivus, We are producing the product for the sales campaign a few months before the sales season started. In a way, we are captured with the quantity we can sell according to the quantity that we produce. What I can share is that, as we mentioned, we go through some challenges and struggles with the production process this year, but still it's a much higher quantity compared to previous year. And the good news is that what we see is that there is more demand compared to what we supply. And I think that next year, with all the experience we gain, This year, we are going to produce a significant higher quantity compared to what we are going to sell this year. It will be a quite significant amount compared to previous year, but I think that the big jump is going to be introduced next year. And we are planning not just to sell in the US like this year. Next year we hope also to start to sell in Canada. We are waiting for the Canadian approval to start to sell this product, which we hope to receive it in the near future. Assuming that we receive it, of course, we will announce it as well. And the sales are progressing better than what we expected this year. And there is high expectation for next year.
spk10: Great. Thanks. And just wanted to, you know, in economics, you know, with the recent announcements with the licensing agreement, how should we think about that as far as, you know, the split? Like, is more of your revenue now going to come from licensing-based sales or, you know, from your direct sales?
spk07: What is nice about Canonic, which is very different from many other companies in this field, at least in Israel, is that we have the engine that produces varieties. And what we are doing is that usually we are conducting a variety test in a potential cultivators because we don't have the facility to cultivate, to grow the product itself. We hold only greenhouses for research activity. So when we conduct a variety test, so we choose the most promising one and we decided that this is going to be our product. But in doing so, the company that cultivates for us the variety or conducts for us the test, they are exposed to the quality of our variety. And then in some cases, there is a situation where they ask to have a license to some of the varieties that we decided not to commercialize because still they believe that this is a high quality compared to what exists in the market. So we feel very positive on a situation that more and more varieties that maybe we decided that we are not going to take all the way to commercialization. if we can still benefit from this variety through other companies that will grow the crop and we will be responsible on the marketing and we will get royalty and we don't see a direct competition between those products. So I think that this could be a very interesting additional business model for canonic activity. And, of course, the revenue we are going to generate will be lower, but there is no risk and there is no cost of goods sold. So every dollar that we are going to get from this avenue, it will be in addition to the net profit because, as I said, it's not variety that we develop for a partner. It's variety that we develop already and we decided not to commercialize it but they believe that there is still a significant commercial value, and they would like to take it all the way to the market. So I think that through the years, as we have more and more this type of opportunity, and there will be companies that have space that they can grow cannabis, but they don't have a high-quality variety, so if they will approach us, we will be more than happy to capture this opportunity opportunity and generate more revenue for Ocanonic.
spk10: Great. Thanks for putting that in perspective. Thank you.
spk02: Thank you, Brian. The next question is from Ben Cleave of Lake Street Capital. Please go ahead.
spk08: I'd like to start with Kestera. Oprah, I appreciated your comments on emphasizing the subsidiary. and have a couple of questions on this specifically. So my first question is, in your updated presentation, you refer to expecting a few hundred tons a year as of 2024 production. Can you provide a bit of context to this? The few hundred tons a year in 2024 expected, is that seed inventory or is that grain production that your end customers will be producing for? you know, for their customers?
spk07: So we are talking about seeds that we are planning to sell to our partners. You know, we are building the inventory. We have one group that grows for us seeds in Brazil, and we have another group that can grow for us seeds in Africa. And numbers, if we're referring to the same figure, so we're talking about... a few tens of tons that we are generating as a seed for sale.
spk08: Okay. So that few hundred tons a year in 2024 is a few hundred tons of seed for sale? Yes. Okay. That's great. Thank you. And then you also mentioned, you know, the benefits of CASA from the perspective of, you know, marginal land and negligible In the context of the EU's recent deforestation legislation, are you expecting that your products will be broadly applied on land that is considered deforestation-free? And if so, are you going to be able to, you know, really validate that to the degree that the EU regulators would like? Is that something that you're going to be able to, you know, prove to those regulators? Or is that something you're still working through?
spk07: On what product you are talking about, sorry? Because you're talking about Castera? Yeah, for Castera specifically. So, at least from my understanding, in the area where we are growing our crop, There is no any limitation. It's really the farmer decision what he wants to grow. All of our varieties are registered and we can start the selling process. I don't think that we need, just to my understanding, I mean, I can check it once again, but I don't think that we need any regulatory permission to sell the product in South America or in Africa. Actually, we start in doing so last year. We are doing it already for a few years in a small quantity. Now we are expecting to see significant growth, especially in Africa. And I think as we publish, we engage with a very big energy company that we sold them which we start to shift those quantity only this year, and we are expecting to start to recognize revenue from this activity in next quarter. Great. Very helpful. In the second quarter.
spk08: Got it. Got it. Okay. Very helpful. Thank you. One more from me on LaVie Bio, and then I'll pass it on. You also have noted, and it's reiterated in your presentation, additional biopesticides programs that are coming online. You note that this is the large multinational company expected in 2024. I know you can't name names, but can you clarify if this is with one of the existing collaborators that you have, or is this with potentially a new one? a multinational partner.
spk07: With the Sex2Laviv Bio, we're talking about biopesticides. So there is more than one program that we are managing under this title. I'm more than happy to share that there is more than one program that we are having ongoing discussion with potential partners. And I can assure you that we are not talking just with our current shareholders. There is an interest coming from other companies as well. And we are free. There is some limitation on what we can do, but here we have enough freedom to work with other companies. And I really hope and believe that there will be some positive announcements in this direction in 2024 and hopefully maybe even in 2023. Very good.
spk08: Very good. Well, best of luck on that. All right. I will appreciate you taking my questions. Good luck here in this coming quarter, and I'll get back in line. Thank you.
spk02: If there are any additional questions, please press star 1. If you wish to cancel your request, please press star 2. Please stand by while we poll for more questions. There are no further questions at this time. Before I ask, Mr. Ofer Habib. To go ahead with his closing statement, I would like to remind participants that a replay of this call is scheduled to begin two hours after the conference. In the U.S., please call 1-888-326-9310. In Israel, please call 903-925-5901. Internationally, please call 972-3925-901. Mr. Khabib, would you like to make your concluding statement?
spk08: We actually have, I think, we have one other person who wanted to ask a question, as far as I can see.
spk02: Operator? The question, he must have dropped from the queue. Would you like to press star one to join the queue? The next question is from Brett Reese of Janet Montgomery Scott. Please go ahead.
spk09: Hi, Ofer. My question is probably for Rachel. The company has been doing a lot of the right things, and yet the stock prices, it's a penny stock below a dollar, which limits institutions that can buy. Even my own firm frowns on buying this type of stock. I'm just wondering if there's an opportunity, Rachel, to reach out to the key opinion leaders in the Reddit meme stock crowd. And yes, I'm aware of, you know, the pejorative, you know, reputation that, that some of these folks have, but they are enthusiastic. They, um, you know, possess creative thinking and we see they have a lot of power and, you know, the problem is they sometimes marry themselves to, you know, economically challenged entities with ever gene. Uh, you, you know, you have a company with sexy products on the right side of history, no debt, uh, cash and a limited float. Um, I'm just wondering if that's something that could be considered.
spk03: Thank you for your question. If that's all right with you, I will let Ofer answer it. Thank you.
spk07: I think that since Rachel just joined the company, I would prefer that she will address this type of question, and she will do so starting from the next quarter. I think the fact that we decided to recruit an internal IR manager, I think it sends a clear message that we believe that we need to invest much more in IR activity, also in public relationship activity. I think that maybe we didn't spend enough resources and attention in this direction. Probably it was my mistake. And my expectation is that together with Rachel, we are going to change it. We start to see in the news more and more articles about Evogen. There is more. Actually, there was even a nice article in Forbes, and I hope and believe there will be more of these type of articles. And yes, I'm planning to start to meet with investors and and now when i have all of this amazing great news as you describe and thank you for this and there is more to come and i think that uh i really hope that in the next few quarters we'll start to see also the p l start to uh reflect those good good news through you know a a milestone payment sales uh uh upfront payment from from collaborations our subsidiary are going to conduct I think this is, assuming that all of this will happen, I think that then with meeting with investors and with the right publication and additional IR and PR work, I hope that it will start to have also the understanding of the market of what Evergen is doing and what our subsidiaries are doing will start to have also, will infuse into the capital market and we will start to see changing momentum and direction in our share. So, yes, we are aware to this. Yes, we start to put now more resources and attention. And, yes, probably the most important thing, we start to see, again, stronger news from our own activity and our subsidiary activity. And I hope that we will be able to communicate all of this good stuff to the capital market. So let's see next quarter and the quarter after, and I hope that first Rachel will be able to address this question, and she will do it with a big smile.
spk09: All right. Thank you for answering the question, and welcome aboard, Rachel.
spk03: Thank you. Thank you so much.
spk02: Mr. Khabib, would you like to make your concluding statement?
spk07: Thank you all for joining the call today. I look forward to updating you on our progress in our next call, and I believe that there will be much to tell about. Thank you very much.
spk02: Thank you. This concludes Evogen's first quarter 2023 results conference call. Thank you for your participation. You may go ahead and disconnect.
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