Bee Vectoring Technologies Secures Up to $1 Million Loan Financing
Mississauga, ON Canada and Sacramento, CA USA (December 14, 2023) – Bee Vectoring Technologies International Inc. (the “Company” or “BVT”) (CSE: BEE) (OTCQB: BEVVF) (CVE:BEE) is pleased to announce that it has entered into a secured loan agreement dated December 11, 2023 (the “Loan Agreement”) with two capital firms (the “Lenders”), whereby it will secure a loan of up to CAD $1 million (the “Loan”) on a credit facility basis.
The Loan will be funded in tranches of $100,000 (each, a “Tranche”) at the Company’s discretion. Each Tranche will be secured and evidenced by promissory notes (each, a “Note”). The Company reserves the right to choose the method of settlement for each Note within a two-year period, either through cash repayment or issuing common shares (“Shares”). Each Tranche must be repaid (in cash or Shares) in advance of the Lenders making a subsequent Tranche of funding available to the Company. It will be the Company’s intention to issue Shares equivalent to the principal amount of each Note to repay each Tranche. The price for these Shares will be determined based on the 20-day volume-weighted average price (VWAP), subject to a minimum price of CAD $0.05, with up to a maximum of 20,000,000 Shares being issued pursuant to the Loan.
Outstanding debt on each Note carries an annualized interest rate of 15% which starts after the 5th day from when the Company closes a Tranche. The Company can also pay any accrued interest through Shares based of a 20-day VWAP as noted above.
As security for the payment of the Company’s obligations and fulfilment and satisfaction of all covenants and agreements made under the Loan Agreement, and any Notes thereunder, the Company will enter into a general security agreement (“GSA”) with the Lenders for each Tranche, pursuant to which the Company has granted a security interest in product inventory and equipment of the Company up to the amount of each Tranche.
The Company intends to use the proceeds from each Tranche to fund its ongoing growth strategy in the agricultural space, for continued research and development, marketing services and general working capital purposes. The Company intends to close the first Tranche on or about December 20, 2023 with up to nine additional Tranches to be drawn over the course of up to two years. The company will make an announcement when each tranche is drawn.
Subject to compliance with applicable regulatory requirements, the Notes will be issued pursuant to subsection 73.2(1)a of the Securities Act (Ontario), and will be free trading from issuance. Shares issued pursuant to the conversion of Notes will be issued pursuant to NI 2.42(1), and will also be free trading from issuance. The Shares issued as consideration payable for the facilitation fee will be subject to a four month and one day hold in accordance with Canadian Securities Law.
About Bee Vectoring Technologies International Inc.
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 55 granted patents, many more 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.@
BVT Company Contact:
Ashish Malik, President & CEO, BVT
BVT Investor Contact:
Virtus Advisory Group
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: a rising interest rate environment, adverse industry events; future legislative and regulatory developments in the agricultural sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; markets in Canada and generally; the ability of the Company to implement its business strategies; competition; and other assumptions, risks and uncertainties. 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.sedarplus.ca. 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.