Bee Vectoring Technologies receives patent for Clonostachys rosea CR-7 in Brazil

Bee Vectoring Technologies International Inc. (the ″Company″ or ″BVT″) (CSE: BEE) (OTCQB: BEVVF) (CVE:BEE) announced 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