Monday, 4 March 2019
BioLargo Spotlight: BioLargo Answering Call to Solve Odor and Air Quality Issues for Cannabis Industry
These days, there is one topic that seems nearly impossible to escape in business – cannabis. This is unsurprising if you consider the industry’s monumental growth since Colorado became the first state to legalize recreational marijuana in 2012. Nine other states have followed suit, and more are expected. Indeed, the global legal cannabis market is expected to grow to a whopping $146.4B in 2025 at an astounding 34.6% annual growth rate. Some call cannabis the 21st century’s gold rush.
With rapid growth comes growing pains. One serious challenge the cannabis industry faces is odor and air quality control. Cannabis producing and processing facilities emit strong, persistent odors. These odors are integral to, and the sign of, a good product. The irony, however, is that while the operators (and consumers) may love the smell of marijuana, neighbors and communities don’t.
Examples are already cropping up of communities rallying against local producers, creating poor public perception for the industry and likely leading to litigation and fines. Strong odor isn’t the only problem – the gasses released in cannabis growing and product producing operations are hazardous. The volatile organic compounds (VOCs) responsible for the cannabis smell, called terpenes, are also air pollutants known to contribute totropospheric ozone and smog. Cannabis producers are becoming under increasing pressure to implement sufficient air quality and odor control measures to mitigate these risks, especially given the sensitive political and social condition of the legal cannabis industry as a whole.
Cannabis producers are actively seeking the best available solutions to the problem. Given the value of cannabis operations and their exceedingly high profit margins, there is simply no room or need to cut corners with a solution to the odor problem. Among solutions providers, there is now a proverbial “land grab” to become the best solution for the industry’s odor and air quality management challenge.
CupriDyne Clean Positioned to be the Solution for this Industry
BioLargo’s CupriDyne Clean product has been proven effective in eliminating cannabis-related odors and VOCs. The company recently established its first strategic partnership with an air handling and air quality company with operations in both the United States and Canada, under a white label program (more details to come soon). Through this relationship, progress has already been rapid – 3 customers have already been secured and 5 commercial trials are underway in the cannabis industry.
Our market rollout strategy in the cannabis industry is drastically different than our approach for the solid waste handling industry. In that market, sales, marketing, and service package delivery were organized directly by our subsidiary Odor-No-More, allowing the company to create a great reputation for the product and the company. The company’s success in the waste handling industry allows it to leverage its considerable expertise and proven product through strategic channel partnerships to rapidly capture a large share of the cannabis odor control market. We intend for CupriDyne Clean to quickly become part of the “best practices” for mitigating cannabis-related odors and VOCs.
Odor-No-More President Joe Provenzano commented, “Within the Cannabis industry, we have identified a number of key relationships and are working to finalize agreements with equipment manufacturers, regulatory consultants, key opinion leaders, and marketing partners. Our value proposition is unmatched for odor and VOC control and this is another great example how our platform continues to expand in high value markets.”
About CupriDyne Clean Industrial Odor Control
BioLargo’s wholly owned subsidiary Odor-No-More launched its award-winning product CupriDyne Clean for odor and VOC control into the waste handling industry just a few years ago. CupriDyne Clean is safe, easy to use, and is a confirmed non-pesticide. Unlike its competitors, CupriDyne does not need fragrances or essential oils to do the job. Instead, it cost effectively eliminates odors and VOCs rather than masking them. The product is enjoying growing adoption through 4 national purchasing agreement with industry leaders in the waste handling industry, with one of the largest customers in the industry going live in the past two weeks. The company also offers a full service bundle in the waste industry including the CupriDyne Clean product, engineering design of misting/spraying systems, construction, installation, maintenance, and ongoing service. The company is now pursuing new markets for the product, including wastewater treatment, metal casting, and cannabis production.
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.