By Lynda Kiernan
Bee Vectoring Technologies (BVT), an agtech startup pioneering a natural, precision method of delivering biological pesticide alternatives to crops using commercially-reared bees, announced its agreement with Alumina Partners for a commitment of up to $6 million in an at-will financing facility.
BVT was incorporated in January 2012, however the technology and IP on which its business is built had its genesis two decades ago, with field trials being conducted since 2006. This award-winning technology called precision vectoring is harmless to the bees involved while providing cutting-edge crop protection and improved yield results compared to traditional chemical controls while using no water and enhancing soil health and the environment.
With BVT’s system, bees live the normal daily life of a pollinator – traveling back and forth from its hive to plants and back again, pollinating as it goes. However, bees return to a BVT hive, they walk through a BVT scientifically designed tray where vectorite powder called CR-7 – a beneficial, naturally occurring, non-GMO fungus – attaches to their legs before they once again venture out into the fields. Safe for plants and animals, out in the field CR-7 blocks diseases from attacking plants. A key factor of BVT’s system is that multiple biocontrols can be included in a single tray at the same time – something the company calls stacking – making the system customizable for each growing operation.
For this process, BVT has chosen to work with bumble bees for a variety of reasons. First, bumble bees can carry their weight in pollen and nectar, and unlike honeybees, bumble bees don’t mind flying in wet or cooler conditions. Additionally, a single hive can house 300 bumblebees, with each bee visiting 10 or more flowers per minute, meaning a single hive can pollinate as many as 10 million flowers over a bloom period.
Over the course of 2019 the company has advanced from an R&D company to a commercial enterprise with EPA approval and growing sales across multiple crops including strawberries, sunflowers, apples, tomatoes, canola, blueberries, and others. This, together with the company’s more than 65 patents and 35 patents pending in all major agricultural countries worldwide, has positioned the company to be an industry disruptor.
“We have been able to secure a significant financing arrangement, even in these uncertain times of the COVID-19 pandemic,” said Michael Collinson, chairman, Bee Vectoring Technologies. “That speaks volumes for the strength of BVT’s fundamentals, including its vast global market opportunity, the ability of its experienced management team to execute the business plan, an extensive worldwide patent portfolio and strong agriculture industry relationships with both partners and growers. It’s an exciting time to be a part of the BVT community.”
The capital from this round will be used by the company in support of the continuation of its growth strategy to further commercialize its novel and natural precision agtech solution, while the structure of the financing deal will allow for needed flexibility.
Under the terms of the agreement, BVT has the right to draw down from the facility for a period of 36 months in tranches of up to $500,000 each. Each tranche will be broken down into units with each unit being equivalent to one common share and one common share purchase warrant. Each unit will be priced at a discount of 15-25 percent from the closing price the day before BVT’s draw down notice.
“This is a strong endorsement from Alumina Partners, a leading New York-based private equity firm,” said Ashish Malik, CEO, Bee Vector Technologies. “Their investment will provide the Company with the financial capability to ensure BVT can execute on its business plan. This flexible arrangement will give us control over the timing and the amount of capital needed to continue the execution and expansion of BVT’s growth strategy.”
“Alumina looks forward to helping BVT accelerate their plans to progress deployment and further development of their natural precision agriculture system,” added Adi Nahmani, managing member, Alumina Partners. “We have been very impressed by the elegance of the company’s strategy. Using bees to deliver targeted micro-doses of natural pest and disease control agents can potentially change the face of modern agriculture.”
– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.
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