Monday, 22 October 2018
BioLargo Closes Bridge Financing with TRITON FUNDS LP, the Largest Student-Run Investment Fund in the Nation
Today we announced the beginning of an important relationship for BioLargo. This morning we put out a press release and an 8-k to announce the closing of a bridge financing loan with TRITON FUNDS LP, the largest student-run investment fund in the United States. TRITON FUNDS have been watching BioLargo for some time and have selected to engage in a financing relationship with the company because according to TRITON co-founder Sam Yaffa, "BioLargo caught our attention because of its involvement in multiple industries that are involved with sustainability".
TRITON FUNDS represents a community of young and talented entrepreneurs and alumni and has a philosophy of investing in high growth-potential companies with a focus on "millennial growth ESG" (Environmental, Social, and Governance) investment themes. The student teams at TRITON FUNDS are also supported by scientific and academic advisory boards, and according to this Forbes article, they raised over $25M in capital in their first year of operation. TRITON raises capital primarily from investors in the San Diego and UC alumni communities who align themselves with the fund's goals of sustainability and social responsibility.
TRITON FUNDS was recently highlighted in a feature article by Forbes –. In the article, TRITON co-founder Nathan Yee was quoted, “We officially launched as a fund in April 2018 and now have 15 students working at the funds, with over 40 academic mentors, and a life science Advisory Board. All of our mentors and advisors are alumni, professors, or have some connection to the Universities.” Sam Yaffa, another TRITON co-founder said in the article, “The reason why our investors have granted us so much power is due to our self-proclaimed “#millennialtouch” and proprietary investment strategy. They value the idea that us, as millennials, have a better perspective of what is the next big thing and we can allocate our portfolio accordingly.”
BioLargo management believes this will be the start of a long and fruitful relationship for the two parties. As BioLargo continues to advance its patented technologies and high growth-potential commercial opportunities in the areas of clean air, clean water, and advanced wound care.
Friday, 19 October 2018
BLEST was recently awarded a contract by one of its key accounts to prepare all environmental permits applications for a new production plant that will convert natural gas into diesel fuel and paraffin waxes. The new plant is to be built in modular stages with each stage capable of producing 200 barrel per day of liquid fuel, with an eventual goal of ten production units, with an eventual total production capacity of 2,000 barrels per day of synthesized diesel fuel and waxes. Environmental permitting is central to the plant design process and it is imperative to develop a full understanding of the permitting issues in order to make informed design decisions.
This project is a great example of the sort of environmental permitting work that BLEST conducts for industry, and why permitting is so important in North America’s highly regulated manufacturing arena . For that reason, we’ve taken a few paragraphs to explain the process for this contract and discuss the rationale behind some of the permitting process.
The first phase of the project is to prepare a permitting strategy document that records our evaluation of which potentially applicable environmental regulations and how they may impact design and operation of the proposed facility. The permitting approach can be categorized by media, that is: emissions to the air, emissions to the water and solid waste. There are numerous potential regulations that may apply for each of the media, including, but certainly not limited to the broad Federal regulatory categories below:
- Resource Conservation and Recovery Act
- Clean Air Act Amendments Title V
- Clean Air Act Amendments Title III
- New Source Performance Standards, New Source Review
- Prevention of Significant Deterioration (PSD)
- Toxic Substances Control Act
- National Pollutant Discharge Elimination System
- Process Safety Management
In addition to the Federal regulations that may apply, each state and many cities and counties have regulations for specific parameters that must be considered during the design process. In total, a new plant may be required to comply with over thirty separate environmental regulations, some of which may conflict, making compliance impossible.
Permitting is often considered an afterthought or a “sideline” issue during the plant design process. However, incorporating the permitting strategy in the design process can save both time and money. There are numerous thresholds built into the regulations that, if exceeded, escalate permitting fees, design and operating costs and extend the time from inception to operation by an order of magnitude. For example, if PSD is triggered, it becomes necessary to conduct an ambient air study and collect data for a calendar year before a permit application can be considered. The site-specific ambient air quality data establishes a baseline air quality that, under PSD, cannot be appreciably impacted by emissions from the proposed plant. By designing the scale of the proposed plant so that PSD is not triggered, at least a year can be saved between inception and plant operation. Conversely, if PSD is not considered in the early planning process, the plant operation can be delayed by at least a year and potentially be denied permission to construct due to local ambient air quality impacts. This outcome requires the plant to be completely redesigned and likely reduced in scale, which could make the economics of the entire endeavor prohibitive.
Early and thorough regulatory planning is imperative to a successful project. Under today’s regulatory setting, designing in ignorance of regulatory requirements is tantamount to project failure.
What is a BioLargo Spotlight?
It’s an exciting time at BioLargo. We’re moving fast, and it can be difficult to keep our stockholders and the investing public informed of our progress. In light of this, we will be posting a series of short articles titled “BioLargo Spotlight”, highlighting certain business activities and other important information in between our required SEC filings. Of course, these do not replace our public filings, which contain more complete information than can be delivered in this forum, and thus we urge you to carefully read and rely on those filings for definitive information, and to review our risk factors and caution regarding forward-looking statements. We are optimistic about our business as we work hard to continue to grow and ultimately generate profits for our stockholders.
Our attorneys remind us that while we believe these developments are important and that these small victories could add up and lead to big victories, at this stage they do not rise to the level of an official material disclosure. As the size and magnitude of these developments become material, we will naturally report that information in an 8-K and our regular SEC filings.
Tuesday, 9 October 2018
If you follow BioLargo Water and its Advanced Oxidation System, you may sometimes wonder how exactly it functions – ie how does it actually treat water? You have probably seen our short descriptions of its function: that it generates highly reactive iodine molecules at its electrodes, resulting in disinfection and decontamination, but the truth is A) this is an oversimplification and B) you may not be entirely clear on what this means!
To expand on this simplified explanation: in the AOS there are two modes of actions by which it treats water. One is the oxidation – the chemical action of removing electrons - of proteins inside bacteria passing through the AOS, resulting in inactivation or killing of those bacteria. The second mode of action is the breaking down of pollutants by oxidation, that is to say the structural or chemical alteration of chemical pollutants by the process of oxidation.
|A peak at an AOS Spiral Reactor|
Understanding these modes of action is crucial to BioLargo from a technical AND business perspective. Why? Because by having a solid understanding of how the AOS works on a fundamental molecular level, we can optimize and modify the AOS to maximize its water treatment potential without causing it to consume more electricity or consumables – both of which translate to money ($$$)!
We’re happy to say that BioLargo Water, our water treatment subsidiary, has been awarded $50,000 CAD last week by the National Science and Engineering Research Council of Canada (NSERC) to investigate, using cutting-edge analytical tools, the mechanism of complete breakdown of harmful compounds by the AOS (discussed further in this article). Congratulations to BioLargo Water!
Wastewaters can be treated by a huge variety of techniques. In recent years, electrochemical treatment has become of high interest to the water treatment industry given its ability to provide simultaneous disinfection and oxidation/reduction of chemical compounds – this is why we invented the AOS. Electrochemical treatment has shown disinfection capabilities for a variety of waters and good performance for both disinfection and decontamination. The advantages of the AOS include its ability to treat wastewaters cost- and energy-efficiently, at ambient temperature and pressure, its requirement for minimal chemical addition, and its low solid waste production. However, any advanced oxidation technique has the potential to generate by-products (BPs) while breaking down harmful organics. It is of high importance, therefore, to evaluate the AOS for the possible generation of of by-products (BPs) – it’s essentially a necessary step for an electrochemical water treatment system.
|Dr. Susana Kimura-Hara|
Dr. Susana Kimura-Hara at the University of Calgary is our lead academic partner in this project. She will use her unique expertise in analytical chemistry, specifically in the field of identification and formation mechanisms of unregulated disinfection by-products, and will be using state-of-the-art techniques and instrumentations that are not otherwise available to BioLargo Water. This project will empower BioLargo Water to accelerate the commercialization of the AOS technology with assurances of the safety of its effluent.
Wednesday, 3 October 2018
Our first analyst coverage has been initiated by The Edison Group and the first report is now published internationally through their distribution channels. The first report can be found at this link: https://www.edisoninvestmentresearch.com/research/report/biolargo/preview/. It can also be found at the Investor Relations section of our web site HERE.
We selected and engaged The Edison Group to provide coverage for at least one year. This work will be instrumental in helping us share our story as we grow our business. We selected The Edison Group because they are known for their integrity, credibility and trustworthiness in producing high quality research reports that strive to be objective, insightful, financially rigorous, readable and timely. See their stated principals here: https://www.edisoninvestmentresearch.com/about/principles
Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is their world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, their research is widely read by international investors, advisors and stakeholders. They follow more than 700 stocks, reach 128 countries, have 420 corporate clients and do all this with a team of 110 employees.
Tuesday, 2 October 2018
Westminster, CA – October 2, 2018 – BioLargo, Inc. (OTCQB:BLGO), developer of sustainable science and technologies and a full-service environmental engineering company, announced today that it had entered into definitive agreements to acquire a breakthrough stem cell therapy technology called “SkinDisc”. Developed by , SkinDisc uses a patient’s own bone marrow and plasma to generate a cell-rich biogel which heals chronic wounds. The product has been tested in over 250 patient cases with no adverse side effects, and successfully aided in the salvage of limbs that otherwise would have been amputated.
The SkinDisc product will be sold through BioLargo subsidiary Clyra Medical Technologies, Inc. In addition to the SkinDisc product, Scion’s key team members will join Clyra to support Clyra’s commercial strategy, including Dr. Brock Liden, a renowned medical podiatrist and expert in wound care and diabetic limb salvage, and Spencer Brown, a medical device industry veteran with more than 35 years of experience working in medical sales, account management, and distribution in the medical device industry.
The acquisition is contingent upon Clyra raising initial minimum capital of $1 million. If Clyra is unable to raise the funds in 120 days, either party may unwind the transaction.
As consideration for the SkinDisc product and other intellectual property, Scion will receive approximately 20% of Clyra’s common stock (half of which would be released upon raising the $1 million initial minimum capital, and the second half released subject to performance metrics), 7,142,858 shares of BioLargo common stock (subject to the same escrow and earn out provisions), and a promissory note in the principal amount of $1,250,000 which would be paid through the capital raise conducted by Clyra.
Dennis P. Calvert, CEO of BioLargo commented, “Company management believes this transaction carries significant value for both BioLargo and Clyra for several reasons. First, our antimicrobial products and the SkinDisc are highly complementary as they will both serve the same advanced wound care market and can often be used together. Second, a fairness opinion report written by an independent evaluator suggested that there is good evidence, based on comparable company analysis, that the combined value of Clyra and Scion would be approximately $33 million following this transaction. Third, the two technical platforms - our antimicrobial products and the SkinDisc - present a long list of product design opportunities establishing a foundation upon which to build an internationally competitive wound care company. Finally, we are particularly excited to be working with the Scion team members that have successfully launched a number of products into the medical industry and believe they bring crucial expertise regarding how to position these products and support the selling process. We remind our shareholders that we cannot predict the timing of the approval of our current application before the FDA, but that we are highly encouraged with the interaction with the FDA staff and believe we are on the right track to be successful.”
Clyra Medical Technologies develops products for wound management that feature broad-spectrum antimicrobial efficacy with no known acquired resistance, sustained release, biofilm efficacy, and being gentle on skin and tissue. Its first product called the Clyra Wound Wash is currently in review by the FDA under a 510 (k) application. The company believes its first target commercial markets will be in the areas of general wound therapy, infection control for the orthopedic surgery market, and a dental rinse. The Clyra technology presents the potential for multiple additional product designs.
Contact Information Dennis Calvert President and CEO BioLargo, Inc. x2
Friday, 28 September 2018
Yesterday we had the great, long-awaited pleasure of receiving our AOS Mobile Lab at the Northern Alberta Institute of Technology (NAIT). What’s a Mobile Lab? It’s a fully weatherized modified shipping container that will contain our AOS and its treatment train for use in field demonstration pilots. It’s a big step for the AOS and for BioLargo.
We’re hard at work assembling the equipment in the lab now 😊
|Truck unloading the mobile lab|
|Outside of the weatherized lab|
|Time to move the equipment in here...|
|Rendering of equipment being prepared for Mobile Lab|
Tuesday, 25 September 2018
Today our President and CEO Dennis Calvert appeared on Uptick Newswire's Stock Day Podcast with Everett Jolly to talk about some highlights of our company's important successes in the past months.
You can listen to the interview right here!
- BioLargo’s odor and VOC control division is company’s first big commercial success
- On current run rate, sales are predicted to top $1M for 2018
- Our flagship product, CupriDyne® Clean, recently secured a fourth national waste handling industry account, and is processing its fifth national account now
- The company is hiring more staff to continue expanding the product’s regional adoption for national accounts – two of the company’s national accounts awarded 100% adoption of CupriDyne Clean in Southern California (Orange County + Los Angeles)
- Total addressable market (TAM) for odor control product is estimated at $1.31B USD*.
- Landfills: $228M
- Composting: $118M
- Transfer stations: $365M
- WWT Plants: $720M
- *(Based on the assumption, which the company has previously reported that its smaller target locations should average approximately $4,000 in potential revenues per month, and larger locations account for $10,000 in potential revenues per month.)
- Our current national accounts have 1,929 locations
- We have expanded from only selling odor control products to offering a complete odor control solution, including: full-service engineering, design, construction and installation of delivery systems, and monthly maintenance and services for landfills, waste transfer stations, recycling centers and wastewater treatment plants
- An update on Clyra Medical’s FDA 510(k) application in process
- Recall that our first application from late last year was re-directed into the office of combination products – we decided that given the various demands that would be required under that route, and in light of our financial resources for Clyra, our best move was to re-apply with the FDA under 510 (k) with a new product. The first product it is on hold until we can revisit the product strategy later with more resources
- The Company filed a new 510 (k) application in June of 2018
- We have received questions and comments about our application from the FDA and are processing those now
- While the timing and outcomes are unpredictable given the nature of the process, we are not deterred and intend to push through the arduous process until successful
- We want to remind our stockholders that as a platform technology company we have a long menu of product designs to choose from and pursue as resources permit and we have experts in this area working with the company
- Our plan to up-list the company’s stock to Nasdaq
- OTC is an increasingly difficult place for a company’s stock to be traded. The pool of investors is limited, and many investors are prohibited from investing in stocks on the OTC.
- Investors face increased barriers with brokerage firms who don’t want to handle shares of OTC companies because of the increased paperwork and lower profit margin on those accounts
- Price volatility is often higher on OTC
- Outgrown the OTC
- In order to qualify for an up-list on the Nasdaq capital market exchange, we will need to pass a qualitative review, and meet 2 primary quantitative measures- achieve a net shareholder equity of $5 million and a $4.00 stock price. We believe that we will also require a fully underwritten offering simultaneous with an uplist
- Brief update on the company’s progress on its pre-commercial pilots for its advanced water treatment technology, the Advanced Oxidation System (AOS). BioLargo’s engineering team is building units for these pilots
- Efficacy of the AOS is proven – its low energy low cost claims are validated at small scale
- 2 pre-commercial pilots are in process