The B.C. company that created the Arctic Apple, which does not turn brown when the inside fruit is exposed to oxygen, has been sold to U.S. biotechnology company Intrexon (NYSE:XON).
The news comes on the heels of Summerland-based Okanagan Specialty Fruits Inc. (OSF) of Summerland, B.C. receiving approval from the U.S. Department of Agriculture to market its genetically modified (GM) Arctic Golden and Arctic Granny Smith apples in the U.S.
OSF investors will receive US$31 million worth of Intrexon stock and US$10 million in cash.
“Joining forces with Intrexon and applying our combined technical know-how is an important step to introducing beneficial products for consumers and growers,” said OSF founder Neal Carter, who will remain with the company.
The transaction is expected to close in the first half of 2015.
OSF’s GM apples have been controversial from Day 1.
Okanagan farmers had feared business losses and the tarnishing of B.C.’s reputation for quality fruit if Ottawa approved the ability for Canadian farmers to commercially grow the apples.
In a 2012 interview with Business in Vancouver, Carter dubbed his innovation “GM-light” because all he did was turn off an enzyme that causes apples to turn brown.
“We have not added any DNA from any new species. We’re taking something away by turning off an enzyme,” he explained.
