Yield10 Bioscience, Inc. announced that the Company has signed a Memorandum of Understanding ("MOU") and License Agreement with Nuseed Nutritional US Inc. (the seed technologies platform of Nufarm Limited (ASX:NUF), granting Nufarm a commercial license to certain Omega-3 intellectual property assets, materials and know-how for producing oil in Camelina. Under the License Agreement, Nufarm will pay Yield10 up to USD 5 million. Nufarm and Yield10 have additionally agreed to immediately negotiate exclusively with each other for the sale of Yield10's remaining assets to Nufarm.

The asset sale will require an affirmative vote from the shareholders of Yield10, and a special meeting of shareholders will be concluded to seek that vote following execution of the asset purchase agreement. Producing omega-3 fatty acids in Camelina may represent a way to enable a predictable, land-based supply of high-quality omega-3 oils to meet the growing global demand for eicosatetraenoic acid ("EPA") and docosahexaenoic acid ("DHA"). Currently, the primary source of EPA and DHA remains ocean-caught fish, where omega-3 oil produced from anchovy harvest is the industry benchmark.

Over the last few years, there has been increasing pressure on the supply of omega-3 oil due to over-fishing.