Clean tech company BioLargo Inc. (BLGO:OTCQB) is launching a new subsidiary to capitalize on its treatment technologies ridding water of so-called "forever chemicals."
The new company is called BioLargo Equipment Solutions & Technologies Inc. (BEST) It will enable the company to represent all of its water technologies under one roof and better support its sales and distribution network of representatives and channel partners.
BioLargo recently received a purchase order to install its Aqueous Electrostatic Concentrator (AEC) — an eco-friendly water treatment system for removing per- and polyfluoroalkyl substances (PFAS) from contaminated water, including drinking water — at a water treatment system in Stockholm, N.J.
"PFAS remediation is starting to see federal and state funding being allocated," noted Oak Ridge Financial Research analyst Richard Ryan in an updated note on Monday. "The dangers of PFAS are well documented, and this will become an ever-increasing area of attention . . . BLGO’s pipeline of PFAS potential projects has grown significantly as customers become more comfortable with its novel technology."
Oak Ridge Financial Research analyst Richard Ryan gave the stock a Buy rating with a CA$0.35 per share price target.
Ryan gave the stock a Buy rating with a CA$0.35 per share price target.
Per- and polyfluoroalkyl substances (PFAS) are long-lasting chemicals that break very slowly over time and persist in people, animals, food, and the environment. DuPont and 3M are facing massive lawsuits over the substances that could rival the tobacco settlement, and more than 200 million Americans have them in their drinking water.
BioLargo said testing has shown its technology removes the chemicals to a level of "non-detection," or a level at which science can no longer detect them.
The cost to society of using PFAS across the global economy is as high as US$17.5 trillion a year, according to a recent report compiled by Swedish non-governmental organization ChemSec. The same study found that profits for the world's largest PFAS manufacturers totaled just US$4 billion annually.
The Catalyst: NJ Water Project 'Just the Start'
Heading the company will be Tonya Chandler, BLGO's Director of Technical Commercialization. The company said she has more than 20 years of experience managing complex accounts and projects in the water industry.
"She also established herself as a recognized expert in PFAS water treatment invited to speak at numerous conferences and educational, including continuing education units for engineers, and similar events throughout the year and continuing into 2024," the company noted in a release.
In addition to AEC, BEST will also focus on BLGO's Advanced Oxidation System (AOS), which is targeted at energy-efficient water disinfection and micropollutant destruction; the Aqueous Reuse Optimization System (AROS), a water recycling technology for cooling towers and industrial wastewater; Industrial odor control under its CupriDyne Clean brand from sister company ONM Environmental; and water treatment solutions developed by third parties.
Singular Research analyst Michael Mathison has given BLGO a Buy-Venture rating with a US$0.28 per share target price.
"The municipal drinking water project we secured in New Jersey for a PFAS treatment system is just the start for BEST," Chandler said. "As our first opportunity for field validation of our technology's superior PFAS removal performance and minimal waste generation, we believe it will open the floodgates of client opportunities. We are working on commencing on-site pilots for other target markets for our PFAS technology, including fire-fighting foam remediation, groundwater, wastewater, and landfill leachate."
Singular Research analyst Michael Mathison has given BLGO a Buy-Venture rating with a US$0.28 per share target price.
"BioLargo’s patented AEC technology is one of the few commercially available technologies," he wrote.
Technical Analyst Clive Maund of CliveMaund.com wrote that PFAS lawsuits could be a "powerful catalyst" for the company's stock.
"Clearly, if even one of the defendants turns to BioLargo to address clearing up this mess, it should be a Big Deal for the company," he wrote.
PFAS Found in Thousands of Products
PFAS are known as "forever chemicals" because they do not break down when released into the environment and can build up in blood and organs.
Found in thousands of products, from food packaging to clothing to toilet paper, the substances can lead to increased risk of cancer, developmental delays in children, hormonal disruption, high cholesterol, and reduced immune system effectiveness, the EPA said.
More than 15,000 claims have been filed nationwide against DuPont and its spinoffs and 3M, major manufacturers of the substances in the U.S., Time reported. So far, they have paid at least US$11.5 billion in damages, an amount that could grow to even exceed "the more than (US)$200 billion paid by Big Tobacco in the 1990s."
Technical Analyst Clive Maund wrote that PFAS lawsuits could be a "powerful catalyst" for the company's stock.
"Not 100% of Americans are walking around smoking tobacco," Erik Olson, senior strategic director for the Natural Resources Defense Council, told Time. "But basically 100% of Americans are walking around with PFAS in their bodies, and none of them asked for that."
BioLargo's AEC technology separates PFAS compounds in an electrostatic field, forcing them to flow across a proprietary membrane system. The company said it removes more than 99% of the PFAS from water at energy costs as low as 30 cents per 1,000 gallons.
Its waste stream is a fraction of that of traditional carbon or ion exchange systems, and the company combines the AEC system with a turnkey collection, membrane exchange, and disposal service. The system is modular, portable, and scalable.
It's also compact, energy-efficient, and creates water with higher purity than other methods, BioLargo said.
Parent Co. Doubles Revenues — Again
Last week, BioLargo also announced that its revenues for the year ending December 31, 2023, were more than double the year before, the second year revenues have doubled for the company.
The increase was mainly driven by Pooph, the pet odor control product line featuring safe and eco-friendly products through retailers like Amazon, Walmart, and Chewy.
Streetwise Ownership Overview*"The success of Pooph validates our business model of inventing a best-in-class technology-based product, proving it up through world-class R&D, and partnering to maximize commercial reach," said BioLargo President and Chief Executive Officer Dennis Calvert. "The team at Pooph informs us that they expect to continue growing sales in 2024, and by doing so, they will continue to increase the value of its brand."
Ownership and Share Structure
About 14.6% of BioLargo is owned by insiders and management, according to Yahoo Finance. They include Chief Science Officer Kenneth Code with 8.67%, CEO Calvert with 3.41%, and Director Jack Strommen with 1.5%, Reuters reported.
About 0.04% is held by the institution First American Trust, Reuters said.
The rest, about 85%, is retail.
Its market cap is US$61.87 million, with about 289.5 million shares outstanding and about 248 million free-floating. It trades in a 52-week range of US$0.2398 and US$0.15.
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