BIOX - Bioceres Has Not Resolved Its Major Risks And Is Growing Based On Commodities Bullishness

• Bioceres has a profitable segment based on its subsidiary Rizobacter, that sells adjuvants, micro beaded fertilizers and other agricultural solutions.
• Rizobacter's profits are growing significantly aided by the bull market in agricultural commodities.
• Bioceres uses Rizobacter's profits and debt to fund its growth strategy based on HB4 technology and further acquisitions.
• The problem is that HB4's market is difficult to estimate. To increase risk, a high level of debt puts Bioceres in a difficult situation if commodities prices recede.
• Bioceres continues in the same vein with the proposal to merge with Marrone Bio Innovations.

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