Bluewater Acquisition Corp. Signs Definitive Agreement With VM Agritech Limited in Connection With Qualifying Transaction

CALGARY, Alberta, Oct. 26, 2021 (GLOBE NEWSWIRE) -- Bluewater Acquisition Corp. (the “Company”) (TSXV:BAQ.P) announces that on October 25, 2021, it entered into a share exchange agreement (the “Share Exchange Agreement”) with VM Agritech Limited (“VMA”) and its shareholders, with respect to the acquisition (the “Acquisition”) by the Company of all the issued and outstanding share capital of VMA.  

The Company and VMA are at arm’s length, and the Acquisition will constitute the “Qualifying Transaction” of the Company in accordance with the policies of the TSX Venture Exchange (the “Exchange”). Assuming completion of the Acquisition, VMA will become a wholly owned subsidiary of the Company and it is anticipated that the Company will be listed on the Exchange as a “Tier 2 Issuer” in its Technology industry segment.

About VMA

VMA has developed and patented a solubilised copper zinc phosphite complex that appears to kill pathogenic fungi in plants directly while also potentially triggering a plant’s immune system to defend itself against further fungal attack. In 2016 and 2017, VMA, in collaboration with the research team at Exeter University, was granted two Industrial Partnership awards with the Research Council BBSRC in the United Kingdom worth over £1.19 million (approximately CAD$2.06 million), the results of which were delivered in 2019 and 2020. VMA is currently engaged with Cornell University to further research and develop its technology in the next two years with the end goal of commercialization applicable to the entire plant-based agricultural industry.

As of June 30, 2021, VMA has spent £1,028,221 (approximately C$1,758,258) primarily on research and development and patent costs. VMA has accounted £204,816 (approximately C$350,235) in net losses from April 1, 2021 to June 30, 2021. As at June 30, 2021, VMA had net assets of £165,435 (approximately C$282,893), and total current liabilities of £255,350 (approximately C$436,648). These numbers are taken from VMA’s unaudited interim financial statements of June 30, 2021, which were prepared in accordance with International Financial Reporting Standards. VMA’s total spend to date on research and development and patent costs is £2.22 million (approximately C$3.8 million).