Westminster, CA -- September 30,
2021 -- InvestorsHub NewsWire -- BioLargo, Inc. (OTCQB:BLGO),
a developer of sustainable cleantech technologies and full-service
environmental engineering company, released a "Letter to
Stockholders" discussing the development of several key strategic
partnerships and other business initiatives aimed at expanding the
company's commercial reach. The Letter to Stockholders is available
below.
Dear Stockholder,
I write to provide an update on the progress that BioLargo
and its business units have made in positioning the company to be
the go-to provider for innovative, effective, scalable solutions to
challenging environmental problems. I also want to share some
insights into the strategic partnerships under development and how
they will help grow our top-line revenue and achieve positive
cashflow in our future.
In this letter, we won't be able to cover all the details
that would meet the standards of our periodic reporting. That level
of detail will have to wait for our next quarterly report, which
will publish in November. In some situations, we are just now
seeing the early launch of an important venture, and in some cases
those ventures need to mature before they will become material.
Nonetheless, these are important for you, as a BioLargo
stockholder, to understand and be apprised of, as we believe they
hold great promise for a profitable future.
For many of these initiatives, a common theme is that these
partnerships are intended to create opportunities for revenue
channels for our patented technologies without requiring dramatic
expansion of BioLargo's infrastructure and without requiring
significant intake of new investment capital.
In many cases, these initiatives may require that our
partner secure capital or dedicate financial resources to execute
the plans described below. They are also subject to the inherent
risk of execution, regulatory barriers, competition, and other
customary business risks. Be assured that as each of these
initiatives advance, we will update the information with more
details.
Let's jump in:
Garratt-Callahan Product Launch
We are launching a new wastewater treatment product with
Garratt-Callahan, the largest privately owned water treatment
company in the United States, founded in 1904. In early 2021,
Garratt-Callahan enlisted the help of our engineers to complete the
design of a device, based on Garratt-Callahan's patented process,
that would salvage usable water from commercial facilities'
wastewater streams. Garratt-Callahan's goal for the
product is for BioLargo to provide manufacturing, and
Garratt-Callahan to sell to its new and existing
customers.
Over the next few weeks, we will be finishing manufacturing
the first units for final operational testing to verify its
functionality before its full launch in early 2022.
Garratt-Callahan aims to deliver 25-35 units of this new product to
its customers in the first year alone, with each unit selling in a
range that we believe will be competitively priced in the
$100,000-$500,000 range. Additional
opportunities with Garratt-Callahan, such as product development,
manufacturing, and the sale of other BioLargo products, are being
discussed.
Garratt-Callan issued a press release about the partnership
that contains this quote from their Technical Project Manager,
Kelle Zeiher Ph.D: "Garratt-Callahan was delighted to partner with
BioLargo on a liquid discharge and waste minimization project. The
heart of the process — developed and patented by Garratt-Callahan
scientists — needed the expert equipment and manufacturing
capabilities that BioLargo adds to bring it to fruition. The
resulting collaborative breakthrough, with its modular design,
allows small- and medium-volume manufacturers to approach the
industrial gold standard of 'zero liquid discharge' without the
million-dollar capital investments often required by traditional
technologies."
PFAS Treatment Projects
Our PFAS chemical water treatment device, the Aqueous
Electrostatic Concentrator (AEC), is making progress towards a
commercial launch that we expect to occur in the first half of
2022. We recently launched a formal testing program
(https://www.biolargoengineering.com/biolargo-pfas-testing-program/)
that we believe will help develop market exposure for the AEC
in advance of its commercial launch.
The PFAS testing program provides a valuable service to
water agencies by testing their PFAS-contaminated water to help
them identify, design, and optimize the best set of treatment
equipment, typically including an AEC, for their specific PFAS
contamination challenge. The service, which is the first
stage of BioLargo's multi-stage commercial process for its PFAS
treatment business, assures clients that subsequent on-site
piloting of the AEC and other PFAS treatment equipment will be
successful.
Our first two client opportunities are with a leading
municipal water agency in California and a U.S. federal agency.
Additional client opportunities of similar magnitude are in the
pipeline. As the first step in serving these clients, we have
recently received the necessary quantities of their
PFAS-contaminated water to begin processing through our PFAS
testing program as the first step in our piloting and proposal
process.
PFAS (per- and poly-fluoroalkyl substances) are a class of
man-made chemicals that contaminate all types of surface and
groundwater sources, including drinking water, across the United
States. The chemicals have been linked to myriad health problems,
spurring the Federal government to legislate new drinking water
standards as part of their PFAS Action Act of 2021, which is
currently in the Senate. Consequently, this market is estimated to
grow to a size of up to $80 billion a year, and our technology
could become leading solution in the market based on its claims of
cost-efficiency and low waste production. The size of projects for
this technology are expected to range from $500,000 to as high as
$30 million.
To access this market quickly and effectively, we are
bringing on board experienced water industry sales representatives,
and will partner with other water treatment equipment and service
providers who will act as distributors and re-sellers for the AEC.
We intend to secure those partnerships after the next phase of our
commercial launch, the execution of initial commercial trials, is
complete.
We will soon be showcasing the AEC with a demonstration unit
at the WWOA (Wisconsin Wastewater Operators Association) trade show
in La Crosse, WI, as well as at the Pollutec wastewater conference
in France, both of which occur in October of this
year.
New Consumer Product Partnership
Over the past six months, we have developed a relationship
with a company founded by highly accomplished industry executives
from the consumer packaged goods industry who have executed
successful launches of at least five blockbuster products, that
intends to launch a new consumer product based on our patented
BioLargo technology. Our partner, Ikigai Holdings, LLC, has
completed preliminary testing, developed the brand, and is in the
process of developing television commercials and other marketing
materials. It intends to begin test marketing the first product in
the coming weeks, and assuming that test marketing phase is
successful, will launch the product with the goal to sell to the
major retailers in the United States.
Our agreements provide that we will be the manufacturer of
the new product (or products), and they will finance and manage
roll-out, distribution, and marketing. We are excited about the
potential for this partnership to create significant new revenue
channels for BioLargo, but of course, at this point, as confident
we are in our new partners, our legal advisors remind us that we
cannot predict the future or whether the new product(s) will
ultimately find success in the marketplace. With that caveat in
place, our partners tell us that the initial television launch will
provide highly reliable data indicating the size of the consumer
market opportunity. Based on these results, a go-to-market strategy
will be determined, and production will be
planned.
Jane Pak, Co-Founder of Ikigai Holdings, offered us this
quote: "Creating a mass-market brand begins with finding superior
products with unbeatable claims. Our research validated that the
current leading odor eliminating products are inferior to the
CupriDyne formula and we're thrilled to have the opportunity to
disrupt the consumer odor elimination category with such a
compelling offer."
Aquaco Partnership to Launch AOS in California
Agriculture Market
We have signed a "memorandum of understanding" with Aquaco
Resources, Inc., to sell water treatment equipment and provide
engineering solutions for its customers. Founded by Pat McEntee, a
former executive at Oracle, IBM, and ABC/Disney, Aquaco is
dedicated to delivering best-of-class technical solutions to manage
the water needs of agriculture and food processing industry
clients. Its marketing strategy involves developing strategic
alliances with leading universities, cities, industry associations,
researchers and multiple technology and service companies to
deliver modern, long-term, practical solutions for the issues of
water scarcity, water quality, delivery and reuse which are crucial
to every agriculture producer in California. Aquaco will also offer
its customers flexible long-term financing options and dedicated
local services to ensure customers' water security into an
uncertain future.
Aquaco is drafting a series of agreements that would ensure
BioLargo and its engineers an important role in its operations.
Aquaco anticipates that once the venture is operational, it will
expand nationally and at capacity, its goal is to generate revenues
in excess of $100 million annually after at least a 4-5 year
ramp-up period.
Other Important Commercial
Progress
While some of this has been reported in recent months, we
think it prudent to highlight the ongoing organic growth of
business and new relationships at BioLargo below.
South Korean joint venture: Our joint venture with one of
the leading wastewater treatment technology companies in South
Korea is beginning to make progress after experiencing delays
during COVID. Our partners in South Korea continue to press ahead
toward meaningful success with comprehensive client testing,
commercial validation, and initial sales.
Cannabis industry: Our distributor's work in the cannabis
industry was likewise slowed due to the pandemic-related closing of
trade shows, but our partners are confident that their investment
in marketing and branding efforts will support expansion of their
"Cannabusters" brand of our odor-control technology, especially as
that industry returns to trade show activity, which is a key facet
of marketing products such as this.
CupriDyne Clean: Very recently, ONM Environmental was
recently notified of an award for a multi-year contract to be the
exclusive supplier of air quality control chemistry to a major
municipality. We did experience some slowdown in sales of our odor
and VOC control operations (ONM Environmental) in early 2021, due
in large part to the COVID pandemic, but we are now seeing that
operation return to more consistent base-line revenues. Their work
with some of the biggest customers in the industry shows signs of
expansion with more bids, more third-party engineering firms
specifying our solutions, and more big customers now realizing the
depth of our capabilities and services.
Engineering division: We announced in June that our
engineering division, BioLargo Engineering, Science &
Technologies (BLEST), had secured over $1.2 million
in new contracts with external clients. As you might imagine,
BLEST is in growth mode and will require more team members given
the significant business opportunities already under way. They are
working to expand staffing and increase their revenues, and at the
same time are hard at work helping to launch our AOS and AEC water
treatment systems.
AOS pilot project: We are excited about our ongoing pilot
for our Advanced Oxidation System (AOS) water treatment system at
the municipal wastewater treatment pilot near Montreal, Quebec.
Just last week, the scientists operating the pilot confirmed it
removed pharmaceutical micropollutants and simultaneously
disinfected the wastewater, while consuming minimal electricity - a
remarkable and unique value proposition in the wastewater treatment
world. We just recently produced a short film highlighting the AOS
pilot project in Quebec, which is operating and collecting positive
results. Watch here: https://biolargo.blogspot.com/2021/09/biolargo-aos-water-treatment-technology.html
Our scientists have been invited by the Canadian Trade
Commissioner Service to showcase our AOS and AEC technologies at
the Pollutec international environmental conferences and trade show
(https://www.pollutec.com/en-gb.html), in
France this October, where our team will have the opportunity to
talk about these breakthrough technologies and their role in water
treatment to potential clients in the European market. In
particular, the team will focus on marketing these technologies as
solutions to emerging water contaminants like micropollutants and
PFAS.
Clyra Medical: Finally, our subsidiary Clyra Medical
Technologies, which is commercializing medical products based on
our patented technologies pursuant to a license agreement, recently
launched a new product, Bioclynse, the first efficacious,
safe, and long-acting wound irrigation solution that can be used
throughout the entire surgical procedure, with no need to rinse
out. Clyra has recently landed its first repeat orders from
hospitals using the product, and Clyra management is excited about
its future. Help spread the word about this great product with
medical professionals, as we believe this product and products
stemming from it have the potential to improve best practices in
surgeries into the future. Clyra is organizing resources and
relationships to expand its marketing and sales efforts for this
great product.
Financial Achievements
We have current financing in place to meet our short-term
capital needs as we continue to grow our business and convert the
projects described above into assets and partnerships that generate
significant revenue, cash flow, and ultimately profits.
Our balance sheet has improved dramatically. As previously
reported, we have continued to reduce our debt, including the
payoff of $406,000 in convertible debt due in August 2021 through
the payment of cash and equity, as reported on Form 8-K filed with
the SEC on May 19, 2021. Since December 31, 2019, the company has
reduced its debt by over $4 million.
Other than debt owed by our partially owned subsidiary Clyra
Medical, and a $50,000 fixed-price convertible note due in 2023,
only Small Business Association loans through the PPP and EIDL
programs totaling $464,000 are outstanding, and of that, we've
applied for forgiveness on $314,000, and the remainder is low
interest and paid over 30 years.
Concluding Remarks
The management team at BioLargo knows that to achieve its
objective of being a go-to provider of environmental solutions and
become a hub in the marketplace, we have to complement our
technical and executive excellence with the right strategic
partners who can help increase our commercial reach. The
relationships that I have detailed in this letter demonstrate our
capacity to implement this approach.
As a result, both myself and our management team have never
been more excited and optimistic than we are today. We know that we
have the talent (in our expert science and engineering team), the
necessary tools (in our unparalleled technologies), and the
opportunity (in market needs) to convert this company into a
cleantech powerhouse.
With the formation of these new partnerships and the launch
of the ventures you've read about above, we are very close to
unlocking the potential of our technologies in our pursuit to make
life better. We have other high-impact business opportunities that
are in various stages of development, and we are excited to provide
more information about each of these initiatives as they
unfold.
Sincerely,
Dennis P. Calvert
President & CEO
BioLargo, Inc.
About BioLargo, Inc.
BioLargo, Inc.
(OTCQB:BLGO)
invents, develops, and commercializes innovative platform
technologies to solve challenging environmental problems like PFAS
contamination, advanced water and wastewater treatment, industrial
odor and VOC control, air quality control, and infection control.
With over 13 years of extensive R&D, BioLargo holds a wide
array of issued patents, maintains a robust pipeline of products,
and provides full-service environmental engineering. Our
peer-reviewed scientific approach allows us to invent or acquire
novel technologies and develop them to maturity through our
operating subsidiaries. With a keen emphasis on collaborations with
academic, municipal, and commercial organizations and associations,
BioLargo has proven itself with over 80 awarded grants and numerous
pilot projects. We monetize through direct sales, recurring service
contracts, licensing agreements, strategic joint venture formation
and/or the sale of the IP. See our website at www.BioLargo.com.
Contact Information
Dennis P. Calvert
President and CEO, BioLargo,
Inc.
888-400-2863
Safe Harbor Act
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include without limitation those about BioLargo's (the
"Company") expectations regarding the impact of the COVID-19
pandemic; anticipated revenue; and plans for future operations.
These statements involve risks and uncertainties, and actual
results may differ materially from any future results expressed or
implied by the forward-looking statements. Risks and uncertainties
include without limitation: the effect of the COVID-19 pandemic on
the Company's business, results of operations, financial condition,
and stock price; the effect of regional economic conditions on the
Company's business, including effects on purchasing decisions by
consumers and businesses; the ability of the Company to compete in
markets that are highly competitive and subject to rapid
technological change; the ability of the Company to manage frequent
introductions and transitions of products and services, including
delivering to the marketplace, and stimulating customer demand for,
new products, services, and technological innovations on a timely
basis; the dependency of the Company on the performance of
distributors of the Company's products. More information on these
risks and other potential factors that could affect the Company's
business and financial results is included in the Company's filings
with the SEC, including in the "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" sections of the Company's most recently filed periodic
reports on Form 10-K and Form 10-Q and subsequent filings. The
Company assumes no obligation to update any forward-looking
statements or information, which speak as of their respective
dates.
Grafico Azioni BioLargo (QX) (USOTC:BLGO)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni BioLargo (QX) (USOTC:BLGO)
Storico
Da Gen 2024 a Gen 2025
