The Cannabis Odor and VOC (Volatile Organic Compound) Problem
DENVER, CO / ACCESSWIRE / March 7, 2019 / Control of noxious VOC emissions is a critical and growing problem for the cannabis industry. Communities across the US and Canada are
complaining to authorities about the rise of unpleasant odors coming from nearby cannabis production facilities, garnering a poor public image for growers and creating the potential for lawsuits, fines, and regulatory backlash. And lawsuits have been filed - a
Colorado court decided that a family who complained about the ''noxious odors'' coming from a cannabis venture next door had sufficient grounds to argue the aroma had hurt their property values, and could therefore sue for triple damages under the federal racketeering laws used to target the Mafia. With cannabis now legal in ten states with more on the way, the odor and VOC issue is garnering significant negative public attention. It may well be one of the toughest problems threatening the industry.
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| Source: ww.cbc.ca |
As an
article published in The Cannifornian puts it, ''Marijuana odors have triggered lawsuits against cannabis companies. They've also led residents to try to block commercial operations from coming to California, Colorado and the other states where recreational cannabis is legal. Denver has set odor standards for marijuana and many California cities and counties rely on repeated complaints as evidence of a problem. In Santa Barbara County, for example, if county authorities get three odor complaints from a business in a year, the company must take steps to fix the problem. And if the business doesn't stop the stench, the county may revoke local permits.''
With odor and VOC control identified as a leading problem, cannabis growers are starting to share ideas about their industry's odor problem. ''Probably the biggest hurdle now, for everybody involved, is knowing what's available as best practices and what's feasible,''
said Dana Pack with Fogco, an Arizona-based,
industry-leading manufacturer of misting systems used to deploy odor and air quality control products in the cannabis industry. As optimal solutions to the odor and VOC problem are identified, this trend toward industry collaboration and sharing will likely accelerate their viral spread and adoption.
BioLargo's Solution - CupriDyne Clean
BioLargo, Inc., (
OTCQB: BLGO) initially launched and proved its patented breakthrough odor and VOC control product, CupriDyne Clean, in the $75 billion waste handling industry. Unlike competing products, CupriDyne Clean does not simply attempt to mask, cover up or filter out odors and VOCs, but actually destroys (oxidizes) them. As a more effective and lower cost solution than competing odor control products, CupriDyne Clean has been a paradigm shift for odor control in the waste handling industry. BioLargo reports it has customers in the largest waste handling companies in the United States.
CupriDyne Clean's success in the waste industry has led to recognition and market pull-through in other industries, most recently the cannabis industry.
Company management discusses the move into the cannabis industry in
a recent blog post: ''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.''
BioLargo described its entry into the cannabis odor and VOC control market through key channel partnerships to market, sell, and distribute their product under a private label brand, rather than sell directly. In their blog, company management explains that this strategy will result in more rapid uptake of the product through these distributors, allowing the product to secure a dominant position in the growing market as quickly as possible.
Mr. Provenzano, President of BioLargo's subsidiary Odor-No-More was quoted, ''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.''
'Pick & shovel' play for new Cannabis gold rush
A new gold rush is on, but this time it's green. Cannabis sales are exploding and there is a lot of money to be made. The key is to identify the winners out of the hundreds of investment options, and picking winners is not always easy. In the California gold rush, the large majority of miners never made any money and usually lost significant amounts due to travel, lodging and equipment expenses. The people who got rich much more consistently and safely were those who provided essential goods, services and products to the miners.
Levi Strauss, one of the most famous examples, made his fortune by supplying the gold miners with rugged clothing that was previously unavailable and stood up to the demands of a miner's hard life. Levi fulfilled an essential need of the growing market, and in doing so became extremely wealthy.
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| Source: Wikipedia |
Money manager Ken Mahoney explains in this
article why ''pick-and-shovel'' companies like BioLargo are the best way to take advantage of the opportunities that cannabis brings while avoiding the volatility and risk of cannabis stocks.
Companies affected by the problem
Many companies in the cannabis industry are affected by these issues and can benefit from BioLargo's patented solutions. Examples are companies like:
- Terra Tech Corp. (OTCQX: TRTC), a vertically integrated cannabis-focused agriculture company, founded in 2010 and headquartered in Irvine, California. The company's Herbs and Produce Products segment offers hydroponic herbs, produce, and floral products. And it's Cannabis Dispensary, Cultivation and Production segment operates medical marijuana retail and adult use dispensaries under the name Blüm, providing a selection of medical and adult use cannabis products.
- OrganiGram Holdings Inc. (OTCQX: OGRMF) through its subsidiaries, produces and sells dried cannabis and cannabis oil in Canada. It was founded in 2013 and is headquartered in Moncton, Canada. The company also offers wholesale shipping of cannabis plant cuttings, dried flowers, blends, pre-rolls, and cannabis oils to retailers and wholesalers.
Conclusion
Cannabis is a booming market with countless ways for an investor to participate and create value. However, many marijuana stock plays can be highly unpredictable and volatile. ''Pick and Shovel'' plays that focus on companies that provide essential solutions to serious problems in the booming market offer an excellent way to participate in the financial returns of the growing cannabis industry. One of the biggest problems requiring a solution in the cannabis industry is odor and VOC control.
BioLargo's CupriDyne Clean is well-positioned to be the best and most cost-efficient solution to the cannabis industry's odor and VOC problem. CupriDyne Clean offers a patented, environmentally friendly product platform with applications across multiple industries that deal with odors and VOCs, collectively representing a multi-billion-dollar odor and VOC control market. The product has already been proven effective in combating the difficult odors of the solid waste handling industry, where the product is being adopted by several of the largest waste handling companies in the United States.
BioLargo doesn't just develop odor and VOC control products, it also develops and owns patented platform technologies that provide safe, green, game-changing solutions for industries including healthcare, water treatment, and air quality. It offers multiple blockbuster products, including CupriDyne Clean, that are either currently commercially active or are nearing commercializations. As well, company financials are getting stronger - in Q3 2018, the company reported its nine-month revenue had increased almost 150% over 2017, and while its annual 10-K has not yet been filed, in a January stockholder letter it reported a preliminary revenue estimate that would be more than double its revenues in 2017.
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