Bastion Square to Merge with ALUULA Composites: A Play on High-Performance Materials Innovation

Bastion Square Partners Inc. (TSXV: BASQ.P) has just inked a definitive agreement to acquire ALUULA Composites Inc., merging the two entities through a three-cornered amalgamation. The deal, signed on December 20, 2022, gives ALUULA shareholders the right to receive BSP common shares valued at a multiple of ALUULA and Ocean Rodeo’s trailing 12-month revenues ending October 31, 2022.

What’s ALUULA All About?

Here’s where it gets interesting. ALUULA is a Victoria-based manufacturer of next-generation soft composite materials that are lighter, stronger, and more durable than traditional alternatives. The company has already gained traction in wind sports—kiteboarding, wing foiling, and windsurfing—with its proprietary ALUULA Gold™ composite receiving Best Product recognition at the 2020 ISPO trade show in Munich.

The secret sauce? ALUULA uses a patented molecular-level approach to strengthen fiber without relying on heavy adhesives. Instead, core weaves and outer films are fused directly, achieving strength-to-weight ratios previously thought impossible. The company has landed major customers across wind sports, sailing, outdoor packs and tents, and aerospace—with ambitious expansion plans into additional sectors.

The Brains Behind the Operation

Richard Myerscough, ALUULA’s founder and CEO, is a serial entrepreneur with three successful ventures under his belt and over 20 patents to his name. He co-founded Whites Manufacturing Ltd. in 1992, which became a world leader in dry suit manufacturing before being acquired by the Aqualung Group in 2010. He also launched Ocean Rodeo in 2001, which has evolved into a global kiteboarding innovator with over 50 patents related to watersports equipment design.

Peter Berrang, joining as Director, is a scientist and entrepreneur with degrees in Chemistry, Physics, and Mathematics, plus a graduate degree in Chemistry. He holds over 30 patents spanning magnetics, fiber optics, semiconductor lasers, neural implants, and high-strength fabrics. His track record includes founding multiple high-tech companies and serving as president when he sold Seastar Optics Inc. to a U.S. public firm in 1995.

Transaction Details and Financing

BSP will conduct a concurrent private placement to raise at least $1.5 million at a market-determined price. Additionally, Gustavson Capital Corp.—owned by BSP Chairman and CEO Peter Gustavson—has committed to loan $750,000 to ALUULA at signing, carrying 7% annual interest with repayment due by March 31, 2023 or closing, whichever comes first. Both Myerscough and Berrang are personally guaranteeing $375,000 each of the loan.

Upon closing, BSP will rebrand as ALUULA Composites Inc. and seek a new ticker symbol. Myerscough and Berrang will join the board alongside Peter Gustavson, Hannes Blum (former CEO of AbeBooks, sold to Amazon in 2008), and Briony Bayer (CFO with 15+ years in senior finance roles).

Why This Matters

The move positions ALUULA for significant growth in public markets. With proven traction in wind sports and emerging demand across aerospace and industrial sectors, the merger provides capital, strategic guidance, and public market exposure. Gustavson brings deep experience building growth companies, while the combined leadership team combines material science innovation with business scaling expertise.

The company views high-performance composites as a massive addressable market ripe for disruption—and ALUULA’s proprietary technology appears positioned to become an industry standard across multiple verticals. Trading in BSP shares remains halted pending Exchange approval of required documentation, with shares likely to resume trading once regulatory sign-offs are secured.