Bee Vectoring Provides Corporate Update
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Mississauga, ON Canada (June 13, 2019) – Bee Vectoring Technologies International Inc. (the “Company” or “BVT”) (TSXV: BEE) (OTCQB: BEVVF) today provided a corporate update and review of current business activities.
Our primary objective is the full U.S. commercial launch of BVT’s vectoring delivery system, utilizing VECTORITETM with CR-7. Market expansion across crop varieties, into markets outside of the U.S. and through strategic or synergistic product development represent further growth initiatives.
The four pillars supporting our launch and growth plans are:
1. Regulatory Approval, for each required jurisdiction;
2. A robust Commercialization and Marketing strategy;
3. Ongoing Product Development and Innovation;
4. A solid Corporate strategy, inclusive of partnering and licensing activity, to maximize the potential of our internal product pipeline, as well as capitalize on and accelerate opportunities that arise as we distort the existing market with our novel technology.
We are pleased to provide a short update on the significant progress made with activities in these four pillars.
Regulatory / Approvals activities:
• US EPA: The US Environmental Protection Agency (EPA) is reviewing the Company’s submission of VECTORITETM with CR-7 for use in BVT’s vectoring delivery system. BVT is in regular contact with the EPA and believes the agency is nearing the completion of the review. No additional data has been requested and our US commercial launch is scheduled this fall.
• Mexico: The Company has started trials, conducted in Mexico by government approved researchers, in support of registration. The Company has started evaluating distribution partners for the Mexican market. Mexico is the second largest producer of berries in the world and there are more than 12,000 hectares of fresh market tomatoes being grown in greenhouses.
• Switzerland: The Swiss authorities are reviewing the Company’s regulatory submission. BVT is in active contact with the reviewing authorities and there have been no questions or requests that suggest any change to an expected decision late 2019 / early 2020. Switzerland is a beachhead country for BVT in the European market, where the Company’s precision, biologic-based technology is well-suited for use within the European sustainable agriculture practices.
Commercialization / Marketing activities:
• Revenue: In the Quarter ended March 31, 2019, BVT posted its first revenue from a successful pilot launch into the Southeastern USA Strawberry market. Revenue of CAD $58k came from five strawberry growers, and one Blueberry grower, who elected to purchase the system after participating in field studies in previous years. As growers adopt the BVT system and can quantify their own crop improvements, the Company anticipates growth from an increase in percentage of each grower’s treated acreage as well as the addition of new buying growers.
• Crop validation: The focus of the pilot launch was the Florida strawberry market; however, BVT was independently contacted by blueberry growers in Georgia interested in its novel approach to increase yields. This is relevant as the company believes that at this early stage revenue from multiple crops is more important than the level of revenue in a single crop, and in context, the Southeastern US strawberry market is relatively modest when compared to blueberries across the country. Studies are ongoing in multiple blueberry markets in the US as well as in sunflowers.
Product Development / Innovation activities:
• Honeybee dispenser: The Company continuously incorporates device improvements and has now developed a user-friendly honeybee dispenser targeting the established market for commercial honeybee pollination. The system is being tested in almonds, blueberries, sunflowers and strawberries in 2019, in anticipation of a launch in 2020.
• Broadening product portfolio: Crops face many pests during a growing season, and by including third-party products that can be "stacked" together with BVT's own product, a broader scope of pests can be managed through the BVT systems thus increasing the value to a grower. BVT has the only bee vectored delivery system in the US and the company is currently evaluating seven third-party microbial products for delivery through its bumble bee and honeybee systems.
• Foliar formulation: Some of the largest crops worldwide such as corn and soybean do not require bees for pollination. In addition, there are several diseases that affect crops during periods other than bloom which would be difficult to manage through bee vectoring application. BVT has started evaluating spray formulations of its proprietary beneficial microbe – Clonostachys rosea strain CR-7 – which could potentially benefit hundreds of millions of acres of additional crops.
Corporate Development and Partnering activities:
BVT has fifteen current and ongoing discussions with potential business partners covering four areas:
1. Commercial – distribution arrangements in markets with no / limited BVT resources where the technology has a strong fit;
2. Product line expansions – in-licensing third party biological control agents that could be vectored by bees to manage pests on crops that are not addressed by BVT’s CR-7 product;
3. Market extension – foliar and seed treatment uses for BVT’s CR-7 product in markets with significant revenue opportunity where bees are not used;
4. R&D – partnerships to strengthen knowledge of bees and delivery by bees thus optimizing the system and capturing greater value
These partnering discussions indicate a strong industry interest in the Company’s technology. The Company believes that several of these discussions will result in agreements that will accelerate business expansion.
“The Company has made significant progress on all strategic fronts, particularly in areas where we have control on timelines,” said Ashish Malik, President and CEO. “We have a sharp focus on the US launch in the context of an overall business plan that includes a wider product offering and global, multi-crop reach that will position BVT as a formidable force within the agriculture industry.”
