Wednesday, 20 February 2019

BioLargo Spotlight: CupriDyne Clean for Odor and VOC Control Finding Promising New Markets Through Partnerships

We’re excited to announce that BioLargo’s odor and “volatile organic compounds” (“VOC”) control division Odor-No-More is expanding beyond its foothold in the solid waste industry to new, high growth potential industries through distribution partnerships, starting with one in the cannabis production industry that management believes will have a significant positive impact on the product’s growth potential. This is part of the company’s strategy to diversify CupriDyne Clean(R) into new revenue-generating business segments.

The company has thus far generated success selling CupriDyne Clean for misting systems to help control odors at our country’s landfills and solid waste transfer stations. It has transformed from a mere product manufacturer to designing, building, installing and maintaining misting systems that the largest waste handling companies in the U.S. are using to controls the odors inherent in their operations.

Its success in the Solid Waste Industry is leading to other opportunities where CupriDyne Clean’s bright future is unfolding. Recently, it has begun work in three key industries that we believe have significant earning potential: (i) cannabis production, (ii) wastewater treatment, and (iii) metal casting. Each of these industries contends with emissions that both smell bad and are dangerous to employees and neighborhoods. And each of these industries have operations that utilize systems similar to the solid waste industry to manage these chemicals, making the transition to these industries simple and efficient for Odor-No-More. Odor-No-More has begun partnering with distributors and private label partners.

Expanding into these three industries has several important benefits for BioLargo: 1) by utilizing existing systems and our distributors’ infrastructure and staffing, it keeps the company’s overhead for sales and distribution down while creating new commercial channels and increasing incremental return-on-investment for the product; 2) it creates a greater near-term growth potential for the product by rapidly granting the company access to new market segments; and 3) it allows the company to tap into the industry-specific expertise of our distribution partners, thereby accelerating market adoption in those new markets.

We have recently formed a new strategic relationship to supply the cannabis production industry. Our product will be sold under a “white-label” agreement with the distributor, who will be showcasing the product at over 20 trade shows, conferences and meetings over the coming months. The distributor is comprised of esteemed experts with decades of experience in air quality management and extensive relationships already established in the industry. More information will follow in our subsequent blog posts, so keep tuned! The cannabis industry is a growing behemoth in the United States. It’s estimated that by 2021, the industry will grow from $16B in 2017 to $40B in 2021 (source: Arcview Market Research and BDS Analytics). It comes as no surprise to most that this industry contends with significant odor issues, with neighbors of production facilities commonly complaining to local authorities. Examples are already cropping up of growers being fined significant amounts for their odor problems. The VOCs produced from cannabis production (namely “terpenes”) are also air pollutants of concern, pushing industry players to invest in air quality management solutions. CupriDyne Clean stands to be the cost-effective, safe, eco-friendly option for growers to keep their air quality up to standards and their neighbors happy rather than litigious.

The metal casting industry is one that is known to produce serious and problematic volatile organic compounds (VOCs) and hazardous air pollutants (HAPs) as well as odors. We have already landed our first corporate account in this industry and are actively pursuing distribution partnerships here to enable rapid growth in an enormous market opportunity.

In wastewater treatment we are in the early stages of discussion and distribution set up with a number of potential distribution partners, but already have flagship accounts with wastewater treatment plants through direct sales and service. We have begun organizing strategic relationships with a number of equipment suppliers that want to specify our products for use in their systems around the world.

Company management anticipates substantial growth for CupriDyne Clean sales through these distribution partnerships in new industries and expects they will help catapult the product to a dominant position in the industrial odor control market.

Odor-No-More’s president Joseph Provenzano commented, “We are just scratching the surface of these massive opportunities.  We have the #1 performing product and a bundle of services that simply cannot be matched.  Watch us grow as we solve problems and meet customer needs in a way that has never been seen before!”

More information about our strategy in each of these new markets will be discussed in follow-up blog posts and disclosures in the coming weeks and months, where we will dive deep into the potential for CupriDyne in each important market.

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.   

Legal Disclaimer

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.