Bee Vectoring Technologies Granted Patent in Brazil, the World’s Largest Crop Protection Market
Mississauga, ON Canada and Sacramento, CA USA (August 18, 2022) – Bee Vectoring Technologies International Inc. (the “Company” or “BVT”) (CSE: BEE) (OTCQB: BEVVF) (CVE:BEE) is pleased to announce that the Company has been granted a patent for BVT’s Clonostachys rosea CR-7 microbial strain (CR-7) in Brazil for use as a biological control agent in agriculture.
Brazil is the world’s fourth-largest food producer(1) and is responsible for 10% of global food production.(2) The country’s crop protection market is valued at US $9.3 billion(3) in 2019, tying with the United States for top place globally. The adoption of biological products is also increasing rapidly, and is expected to grow from 2.6% of agricultural inputs currently to about 20% by 2025.(4)
Brazil represents a significant market opportunity for BVT across specialty and row crops. It has a vast diversity of fruit and vegetable crops and is also the largest soybean producer in the world, with an estimated 140 million tonnes grown annually on about 100 million acres. It is also the world’s largest soybean exporter, with annual exports estimated at 90 million tonnes.(5)
“We are making significant advancements in soybean seed treatment in the United States, and extending the work into Brazil is the next logical step in scaling our business,” said Ashish Malik, CEO of BVT. “Brazil also represents a great opportunity for BVT to further market a foliar and soil-applied version of CR-7, and we are continuing to evaluate the opportunities for the bee vectoring process despite a more limited commercial pollination services industry compared to the United States.”
The Brazil patent grant (Patent Number BR112016005139-4) recognizes the unique properties of BVT’s proven CR-7 strain. It covers the use of CR-7 in any application method, in any formulation (solid or liquid), for yield improvement, and for disease control.
“BVT’s inroads into Brazil are groundbreaking,” says Mr. Malik. “It’s rare for their authorities to allow a company to patent naturally-occurring microbial strains. The fact that we have been granted a patent for CR-7 speaks to how compelling and proprietary our technology really is. Having a patent-protected product paves the way for significant market entry opportunities with business partners in Brazil. It’s a key part of our strategy to strongly position BVT to capture global market share.”
BVT has had over 65 patents granted and currently has more than 35 pending in all major agricultural regions worldwide, including North America, South America, Europe, Asia and Australia.
The Company also announces that that it has entered into debt settlement agreements (“Settlement Agreements”) to settle outstanding cash payments owed to certain creditors totaling $360,441 for consulting, management and bookkeeping fees. Of the total amount owed, $39,550 is owed to Chelsian Sales & Marketing Inc., a private company in which Michael Collinson is a principal, $101,333 is owed to Ashish Malik, and $16,950 is owed to Kyle Appleby, all insiders of the Company (together, the “Insiders”). The disinterested Directors of the Company have approved the Settlement Agreements with each of the Insiders.
Pursuant to the Settlement Agreements, the Company has issued an aggregate of 2,120,241 Common shares at a deemed price of $0.17 per Common share. Securities issued pursuant to the Settlement Agreements will be subject to a statutory hold period of four months plus a day from issuance in accordance with applicable securities laws.
The debt settlement is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 (“MI 61-101”) by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to the Insiders does not exceed 25% of its market capitalization.
(1) Source: Investopedia, 2022
(2) Source: FAOSTAT, 2019
(3) Source: Mordor Intelligence, 2021
(4) Source: Agropages.com, December 28, 2021
(5) Source: World-grain.com, July 23, 2021
BVT, an agriculture technology company, is a market disruptor with a significant global market opportunity in the $240 billion crop protection and fertilizer market. BVT has pioneered a natural precision agriculture system that replaces chemical pesticides and wasteful plant protection product spray applications by delivering biological pesticide alternatives to crops using commercially grown bees. BVT’s award-winning technology, precision vectoring, is completely harmless to bees and allows minute amounts of naturally-derived pesticides (called biologicals) to be delivered directly to blooms, providing improved crop protection and yield results than traditional chemical pesticides – and improving the health of the soil, the microbiome and the environment. Currently, BVT has over 65 granted patents, over 35 patents pending in all major agricultural countries worldwide and has US EPA registration of its Vectorite™ with CR-7 (EPA Registration No. 90641-2) for sale as a registered biological fungicide for use on the labeled crops.
Ashish Malik, President & CEO
Babak Pedram (Canada & International)
Virtus Advisory Group
William Maze (United States)
RB Milestone Group LLC (RBMG)
The CSE has neither approved nor disapproved the contents of this press release. The CSE does not accept responsibility for the adequacy or accuracy of this release. Certain statements contained in this press release constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions as they relate to the Company, “annual revenue potential”, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including: planted acres, selling price of competitive chemical pesticides and the US to Canadian dollar exchange rate. Material factors or assumptions were applied in providing forward-looking information. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include changes in law, competition, litigation, the ability to implement business strategies and pursue business opportunities, state of the capital markets, the availability of funds and resources to pursue operations, new technologies, the ability to protect intellectual property rights, the ability to obtain patent protection for products, third-party intellectual property infringement claims, regulatory changes affecting products, failing research and development activities, the ability to reach and sustain profitability, dependence on business and technical experts, the ability to effectively manage business operations and growth, issuance of debt, dilution of existing securities, volatility of publicly traded securities, potential conflicts of interest, unlikelihood of dividend payments, the potential costs stemming from defending third-party intellectual property infringement claims, the ability to secure relationships with manufacturers and purchasers, as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in the Company’s Filing Statement dated August 14,2020, filed with the CSE and securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. All figures are in Canadian dollars.