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Independent Reviews for Venture Investors

BEE.CA - Higher valuation.



Bee Vectoring Technologies International Inc. (BEE.CA) is an agriculture technology company, BEE (BVT) has pioneered a natural precision agriculture system that replaces chemical pesticides and plant protection product spray applications by delivering biological pesticide alternatives to crops using commercially grown bees.


BVT's award-winning technology, precision vectoring, is harmless to bees and allows minute amounts of naturally-derived pesticides to be delivered directly to blooms, providing better crop protection and yield than traditional chemical pesticides - 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.


Coverage was initiated June 2020 with a notes in March 2021. and December 2021.


News Releases


Dec. 21 - Announces 2022 US Sales on Track, with 2021 Trial Results Driving Growth in New Markets: 1) Sales commitments in the Southeast has already exceeded last year's total acres. 2) High customer retention has also been confirmed in the Southeast, with 80% of growers from last year already confirmed. 3) To help with growth in the newer regional markets, BVT is leveraging results from 2021 university and grower trials.


Jan. 12 - Sign Memorandum of Understanding on Multi-Faceted Business Collaborations with BioSafe Systems: Enter into discussions on multiple business partnership projects that call upon each other’s expertise. BioSafe and BVT are both leaders in the agricultural biologicals industry with a similar customer base, and offer services and products that are complimentary to one another. Specific agreements in these areas will follow.


BioSafe has a 23 year history as an innovator of environmentally sustainable products and has a team of 100 people across the US, Mexico, Canada, and into South America. BioSafe serves a broad customer base in the Agriculture, Horticulture, Post Harvest/Food Safety, Aquatics, Home and Garden, Turf, and Commercial/Industrial Sanitation.


Jan. 25 - Announces Entry into Peru, the #1 Exporter of Fresh Blueberries in the World: The Company will also pursue other crops including avocados. Peru is the beachhead for BVT’s entry into the South American market. BVT has begun the development work needed to enter Peru, including trial and regulatory requirements.


The first step in entering the Peruvian market is to secure an Import and Experimental Use Permit, which would enable field trials of BVT’s proprietary Clonostachys rosea CR-7 microbial strain (CR-7). Once the permit is secured, the Company plans to run berry and avocado trials at the start of the next growing season for each crop type. The data from the trials will be used for regulatory submission. The Company has engaged an established Peru-based agriculture consultancy to lead regulatory and market development efforts.


Peru is the number one supplier of fresh blueberries worldwide Many blueberry growers from North America are expanding by placing production acreage in Peru. Peru is the third largest global avocado exporter.


Jan. 31 - Issues Shareholder Letter and Announces Fiscal Year 2021 Financial Results: i) 100% retention of customers in Georgia. First revenues in Michigan, New Jersey and the Pacific Northwest. ii) First commercial activity in California. New territory manager in place and first trials (almonds, berries) ongoing iii) Successful trials of CR-7 for seed treatment of soybeans, a 300-million-acre worldwide crop.


Feb. 9 - Rutgers University Trial; Up to 84% Better Disease Control and Up to 60% Increase in Crop Yield: Assess the efficacy of BVT’s proprietary Vectorite with CR-7 , applied with bee vectoring technology against blueberry anthracnose (Colletotrichum acutatum), the most damaging pathogen in eastern highbush blueberry.


The objective of the study was to assess efficacy of the BVT system in controlling the development of disease, and the yield of healthy berries after harvest, both critical measures for how long picked berries remain fresh.


Stock Options and Restricted Share Units: BVT also announced that it has granted 1.6M stock options ($0.275 cents) to directors, employees and consultants of the Company.The Company has also granted 1,120,000 restricted share units (“RSUs”) at $0.275 cents.


Mar. 9 - Advancements in Soybean Seed Treatment and Interest with Major Agricultural-Inputs Companies: Clonostachys rosea strain CR-7 (“CR-7") in the seed treatment market – a significant new revenue opportunity. The BVT trials conducted in 2021 were built on the 2020 results in both the US and Switzerland.


Soybeans represent a significant market opportunity for BVT. There are 320M acres planted worldwide, with 86M in the US, 98M in Brazil and 40M in Argentina.(1) BVT estimates about 80% of the soybeans in the US get a seed treatment before planting, including about 50% which get a biological inoculant treatment.


“This marks the first data we have for CR-7 on a major row crop such as soybeans,... This gets the attention of the major global multinationals, and we have generated interest from as many as eight companies to whom we presented our results from the 2021 work. One of them is conducting their own independent trials as well.

-Ashish Malik, CEO of BVT


Mar. 16 - Joins Industry Leaders at World Agri-Tech Innovation Summit. The World Agri-Tech Innovation Summit is a major annual meeting place for the global agtech ecosystem, where agri-food businesses, investors and tech pioneers gather to exchange insights, be inspired, and identify future partners.


Mar. 31 - Announces Ongoing 2022 Almond Trials in California; Disease and Yield Data to Come: Conducting 10 almond trials for 2022 growing season, which started during the almond bloom period (mid-February to mid-March) and will continue through harvest in the Fall. The locations are throughout California's Central Valley, This is the second year for BVT almond trials.


Some of the trials are with large and influential companies in the almond growing community. Across the eight trials, four varieties of almonds are being treated with BVT's proprietary Vectorite with CR-7 (Clonostachys rosea CR-7) biological fungicide, applied with bee vectoring. Two further spray trials are being conducted with the University of California Department of Microbiology and Plant Pathology.


Apr. 20 - Announces Higher US Grower Sales Commitments for 2022: Despite adverse conditions sales activities continue to grow across the US Pacific Coast: Aeven months into the fiscal year, BVT has invoiced growers in the Southeast region and secured commitments in the Northeast, Midwest, and Pacific Northwest.


These positive results have been accomplished despite a very difficult farming environment in most regions. Volatile supply costs have seen fertilizer prices double over last year in several cases, and prices of fuel and other chemical products necessary to run farming operations have increased by up to 40%.


Apr. 27 - Announces Mexico Regulatory Submission as Part of Planned Geographic Expansion: Submitted its proprietary Clonostachys rosea CR-7 (CR-7) biological fungicide for registration in Mexico.


Mexico offers significant market potential for BVT’s natural precision agriculture system: official statistics indicate that the country’s production in 2019 included 41,600 acres of strawberries, 12,100 acres of blueberries and over 377,000 acres of tomatoes and peppers.(1) In the same year, US imports of fresh and processed fruits and vegetables from Mexico amounted to US$15.6 billion.(2).


May 11 - Announces Its First Stone Fruit Trial; Cherry Market Yield Data to be Compiled: First US demonstration trial on stone fruit, with a conventional cherry grower in Washington. The trial began during the mid-April bloom period and will continue through summer harvest.


This initial stone fruit trial marks BVT’s entry into the important US stone fruit market,” said Ashish Malik, CEO of BVT. “In addition to cherries, stone fruits include peaches, nectarines, plums, prunes, and apricots, all grown on more than 270,000 acres(4) of farmland in the US."


May 31 - Announces June 8 Investor Webinar and Comments on Q2 FY2022 Results: The BVT system is used in the Southeast from December to March, in Northern US and the Pacific Northwest from April to June and even beyond for some late blooming varieties, and in California for most of the year.


Revenue in the first half of fiscal 2022 was flat from 2021, when accounting for differences in invoice timing,” says Mr. Malik. “However, with commitments in place and a strong pipeline, growth is expected in the remaining quarters, with additional new customers and revenue expected from states with later growing seasons.


June 7 - Accelerates Sales Commitments and Triples Managed Acres in US Pacific Northwest for FY2022:BVT is now working with 11 berry customers in Oregon and Washington on a total of 360 acres, including five paying customers and six growers conducting demonstration trials. These customers represent over 8,500 total acres.


July 12 - Closes Non-Brokered Financing and Closes Concurrent Private Placement: Non-brokered private placement (the “Sorbie Private Placement”) of units and unsecured convertible notes to Sorbie Bornholm LP , an institutional investor, for gross proceeds of $3.8 million on July 11, 2022.


The Sorbie Private Placement is expected to provide the Company with a consistent source of funds over the next two years, which funds will be used as they are received to fund its ongoing growth strategy in the agricultural space, for continued research and development and general working capital purposes.


11,.1M Units at $0.17 cents (Warrants 0.27 cents)for a period of 36 months from issuance, Also 1,900 Notes in the principal amount of $1,000 per Note (bear interest rate of 7% per annum) for a period of three years. Each Note is convertible into 5,128 Shares, which represents a conversion price of $0.195 cents provided it, does not take Sorbie’s ownership interest in the Company above 9.9%.


Concurrent Private Placement: BVT is also closed a concurrent private placement of 1,556,470 Units for gross proceeds of $264,600 on July 11, 2022, with the same unit terms as the Sorbie Private Placement.


July 14 - Accelerate Entry into Turkish Crop Protection Market with Key Partnership: MOU with Bioglobal A.S.in Turkey to accelerate BVT’s entry into the region, with an option to expand into adjacent countries.


Bioglobal will move forward on registration trials of BVT’s proprietary Clonostachys rosea CR-7 (CR-7) biological fungicide with Turkish authorities – research trials are a required part of regulatory submission.


If successful, the two companies will work towards a commercial agreement to market and distribute BVT’s natural precision agriculture system to growers across the region.


Aug. 4 - Secures First California Sales Order with a Producer for a Major Global Berry Company: For its proprietary Vectorite with CR-7 (Clonostachys rosea CR-7) biological fungicide and natural precision agriculture system with a strawberry and raspberry grower for one of the world’s largest berry companies.


The grower will use BVT’s proprietary Vectorite with CR-7 biological fungicide and natural precision agriculture system on a portion of strawberry and raspberry crop acres.


The opportunity in California includes several crops with an overall growing season which spans up to 10 months of the year, thus representing significantly larger and more diversified annual revenue streams for BVT.


Aug. 18 - Granted Patent in Brazil, the World's Largest Crop Protection Market: For BVT’s Clonostachys rosea CR-7 microbial strain (CR-7) in Brazil for use as a biological control agent in agriculture.


Patent Number (BR112016005139-4) covers the use of CR-7 in any application method, in any formulation (solid or liquid), for yield improvement, and for disease control.


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.


Debt Settlement: Entered into agreements to settle outstanding cash payments owed to certain creditors totaling $360,441 for consulting, management and bookkeeping fees. Pursuant to the Settlement Agreements, the Company has issued an aggregate of 2,120,241 Common shares at a deemed price of $0.17 cents.


Aug. 30 - Doubles Sales in New, Key US Markets and Delivers Market Expansion Milestones in Q3:


US Commercialization: i) Doubled sales in US markets outside the Georgia blueberry market; ii) Tripled sales in the Pacific Northwest: iii) Announced first California sales commitment, with revenue to be reflected in Q4 FY22; iv) Successfully completed year 1 of 2 year trials with Rutgers University in New Jersey; v) Built strong relationship with Michigan Blueberry Growers – a leading grower cooperative in Naturipe, the world’s leading fresh blueberry marketer.


The Company is also focused on new applications for CR-7, a promising avenue that will lead to significant market opportunities for BVT. Recent progress in these areas includes using CR-7 as a seed treatment: the second year of trials is now underway, with results coming at year-end. Development has also begun on a foliar/soil project.


Summary


New Market Entries

A total of three entries were conducted in the past nine months:i) In Peru (#1 importer of fresh blueberry), BVT Intends to secure Import and Experimental Use Permit, then start trials for blueberry and avocado next year (January 2022); ii) In Mexico, BVT submitted its proprietary Clonostachys rosea CR-7 (CR-7) biological fungicide for registration (April 2022) and finally; iii) In Turkey and for surrounding area, BVT completed an MOU with MOU with Bioglobal A.S.to accelerate its entry in these markets (July 2022). Note that BVT stated that it intent to submit in up to four new jurisdictions in FY 2022 in the aim of significantly increasing its geographic footprint and open new revenue streams.


Trials

Four different releases were issued in the past nine months.


i) Positive results from the Rutgers University trials using BVT’s proprietary Vectorite with CR-7, applied with bee vectoring technology against (Colletotrichum acutatum) blueberry anthracnose; (February. 2022).


ii) Soybean seed treatment trials results with BVT CR7 from FY 2021 in both US and Switzerland were presented to eight companies with one of them carrying out their own independent trials.; (March 2022).


iii) Ten almond trials scheduled for FY 2022 in California. Of the ten trials,eight are targetting four variety of almonds using BVT. Two trials are using spray trials; (March 2022)..


iv) First Stone Fruit Trials (Cherries) in Washington State.In addition to cherries, stone fruits include peaches, nectarines, plums, prunes, and apricots representing roughly270,000 acres(4) of farmland in the US; (May 2022).


Commitments

While there were many, BVT securing its first California Sales Order with strawberry and raspeberry grower is definitely one for the books as it was reported to be for: one of the world’s largest berry companies.


Partnerships

In addition to the CBC Biogard deal for Product In-Licensing (October 2021), BVT, signed a Memorandum of Understanding with BioSafe Systems on "multiple business partnership projects" (January 2022).


Patents

Recently (August 2022), BVT was 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.Patent Number (BR112016005139-4) covers the use of CR-7 in any application method, in any formulation (solid or liquid), for yield improvement, and for disease control.


Earnings

YTD 2022 revenues shows that BVT is already exceeding FY 2021. However, Net Loss are greater in this year.

Overall, the increase in YTD revenue are proportional with the Net Losses suggesting efficient scaling.

Despite the presence of revenue seasonality Q3 2022 appears to be the strongest of the last three years.

With added geographical coverage (California), it is expected that Q4 2022 will generate revenues.


Financing

Two rounds of fundrasing were completed. A Non-brokered private placement of units and unsecured convertible notes to Sorbie Bornholm LP, an institutional investor, for gross proceeds of $3.8 million was completed. Among other conditions,a total of 11,.1M Units at $0.17 cents were issued (Warrants $0.27 cents) for 36 months from issuance, In parallel, a smaller private placement for $0.26M with similar unit terms was also conducted in July 2022.


Recently, (August 2022) BVT also announced a Debt Settlement to settle outstanding cash payments owed to certain creditors totaling $360,441 by issuing 2,120,241 Common shares at $0.17 cents.


Stock Options

1.6M stock options ($0.275) and 1.1M restricted share units (“RSUs”) at the same price were issued (February 2022)


In short

Bee Vectoring Technologies (BVT) traded as high as $0.43 cents and as low as $0.17 cents (52 week Low). Yesterday, the stock closed at $0.19 cents despite reporting strong earnings. Not only did Q3 2022 revenues represented two consecutive years of growth, YTD 2022 revenue (three quarters) already exceeds FY2021.


In addition to securing more US commitments, BVT continues to validate its technology with numerous trials accross different applications (i.e. Blueberries, Soybean Seeds Treatment, Almonds and Stone Fruits amongst others). BVT also has initiated three international market entries: Peru, Mexico, Turkey and secured key patents in Brazil.


Furthermore, BVT secured another partnership (BioSafe Systems) to advance its strategy of revenue diversification.

Additionaly, BVT completed a $3.8M financing from Sorbie Bomholm LP which should provide an adequare source of funding to scale its operations. Of Note, the funding was at $0.17 cents and adds roughly 11.1M warrants at $0.27 cents. In addition,BVT granted 1.6M stock options and 1.1M RSU at $0.275 cents representing a total of 14M shares.


Adding it with the Detachable Warrants for the Notes portion of the Sorbie placement (9.7M) equals 23.5M shares.


Hence, $0.27 cents will likely become a resistance point but represents an upside from current levels. Also compared to the existing strike price of the outstanding warrants, it suggests a clear path to a higher valuation.


DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.

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