Green Tech Co.'s Board Ratifies Note, Agreements for Funding

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Bion Environmental Technologies Inc. (BNET:OTCQB) announced that its board has ratified note and security agreements with BLG LLC, a company formed to provide short-term funding for the advanced livestock/organic waste treatment technology and sustainable livestock production company.

The note, up to US$500,000, will be converted to a price to be determined at a later date by "an offering or other funding described in the note," Bion said in a release. It is secured by the company's intellectual property if the company is unable to complete the offering or funding.

According to Bion, BLG LLC includes Bion directors Turk Stovall, Bob Weerts, and Greg Schoener, and two others. It began advancing funds to Bion in August so the company could move forward with final optimization at its commercial-scale demonstration facility in Fair Oaks, Indiana.

"A note with similar terms will shortly be made available to Bion's previous private placement and other accredited investors," the company said in a release.

Bion is operating a commercial-scale demonstration facility in Fair Oaks, Ind., extracting and producing ammonia distillate and ammonium bicarbonate, pure nitrogen fertilizers, in several concentrations.

The company's Ammonia Recovery System (ARS) was developed to process and treat livestock waste streams with a focus on discharges from anaerobic digesters. It's at the core of its Gen3Tech technology, which produces renewable energy and clean water from livestock waste streams and removes the ammonia, then stabilizes and repurposes it into low-carbon and organic nitrogen fertilizers using only the compounds in the waste stream itself.

This keeps ammonia out of the air, land, and water and saves the resource from being lost. It can then be used as an organic fertilizer, adding significant value to help offset treatment costs, the company said.

The ARS operations at Fair Oaks have "continued to meet or exceed expectations," the company said. "A final run is anticipated in the next two weeks that should complete the data requirements for an independent engineering report."

'The Future of Cattle Feeding'

Bion is also working with several stakeholders (including biogas/RNG infrastructure development and production, process engineering, and facility design and construction) planning and completing predevelopment work on the Stovall/Yellowstone Cattle Feeders Project in Shepherd, Montana.

The partnership plans to construct a 16,000-head capacity facility. "It may well become the future of cattle feeding," said Stovall Ranching Companies Chief Executive Officer Turk Stovall, a fifth-generation Montana rancher. "Once completed and proven, the facility can serve as a model to execute in other states and other possible locations in Montana."

Next steps for the project include initial project financing, establishing partnerships, design, and construction, which the company said it hopes to begin by the end of the year.

"We are moving forward with the Stovall/YCF project," said Bion Interim Chief Executive Officer Craig Scott. "After years of models and piloting, followed by optimization and demonstration at Fair Oaks, we are eager to deploy our core ARS technology and the Gen3Tech platform it supports at full commercial scale."

The "continuing trend in consumer demand for improved sustainability, we think our proven technology puts us over a very large target," Scott said.

10-0-0 Fertilizer Now OMRI-Listed

Recently, Bion announced that its 10-0-0 liquid nitrogen fertilizer is now OMRI-listed for use in organic production. OMRI is an international nonprofit organization that lists products allowed for use in organic production under the USDA's National Organic Program.

The requirements for the listing include audits and inspections to comply with OMRI standards, Bion said. Fair Oaks passed both an initial audit and a recent spot inspection.

Bion said its approach reduces the carbon footprint associated with organic systems and significantly reduces "nitrogen runoff and off-gassing to protect surface waters, aquifers, and the atmosphere."

An organic fertilizer, manure, is traditionally applied to cropland before planting takes place. The volatile ammonia-nitrogen it contains — about 75% of the fertilizer's nitrogen/nutrient value — is usually lost to the environment. But Bion said its patented ARS technology targets this volatile and highly mobile ammonia nitrogen, stabilizes it with carbon dioxide also in the waste stream, and converts it into ammonium bicarbonate, a 100% soluble nitrogen fertilizer that can be readily absorbed by plants.

The Catalyst: A Growing Market

Kings Research reported that the global organic fertilizer market was valued at US$11.87 billion in 2022 and is projected to reach US$27.48 billion by 2030, growing at a compound annual growth rate (CAGR) of 11.31% from 2023 to 2030.

"The use of organic fertilizers has become common in recent years, as consumers have become environmentally conscious and are inclined towards sustainable agriculture," the report said. "The proliferating demand for healthier food choices to increase soil fertility and produce healthier crops is accelerating market growth."

Governments around the world are responding to this shift by enacting regulations and incentives to encourage organic farming, Markets and Markets said.

"These actions aim to facilitate the transition to organic methods, further boosting the demand for organic fertilizers," the researcher said in a report.

Vantage Market Research said the market could grow to as much as US$24.95 billion by 2030. "Organic fertilizers, derived from natural sources, offer numerous benefits, including improved soil fertility, enhanced crop yield, and reduced environmental impact," its analysts noted.

Ownership and Share Structure

According to Reuters, about 20% of Bion Environmental is owned by management and insiders. 

About 1.25% is with Centerpoint Corp. with 0.70 million shares. Less than 1% is held by institutions. The rest is with retail.

Bion has a market cap of US$15.26 million. Trading over the past 52 weeks ranged from US$0.15 per share to US$1.30.