Calyxt and Cibus have entered into a definitive agreement to merge the two companies in an all-stock transaction. Under the agreement, Calyxt will issue shares of its common stock to Cibus shareholders in an exchange ratio such that upon completion of the merger, Calyxt shareholders will own approximately 5% of the combined company. The merger is expected to close in the second quarter of 2023, subject to customary closing conditions.

The new entity, which will be renamed Cibus Inc., will aim to become a leader in agriculture-based precision gene editing, focusing on productivity traits and renewable low-carbon ingredients. To develop productivity traits, the combined company will be able to leverage Cibus' patented gene editing platform, the Rapid Trait Development System, which is focused on developing crop traits to increase yields and reduce pesticide and fertiliser applications. Cibus has established collaborations with several key seed companies and is currently in the process of launching three productivity traits: one in canola and two in rice, with commercialisation expected in the first half of 2023. Cibus and Calyxt are also both working with consumer product companies to develop more sustainable ingredients.