BioLargo Inc (OTCMKTS:BLGO) said Wednesday that it has executed a joint venture framework agreement with Bookang Tech Co Ltd (BKT), a leading wastewater treatment solution provider in South Korea to create an entity that will make industrial odor and volatile organic compounds (VOC) elimination products based on BioLargo’s flagship product CupriDyne Clean.
In a statement, the Westminster, California, company said the joint venture will come into being soon and begin operations.
BioLargo’s Odor-No-More division’s main product is CupriDyne Clean Industrial Odor and VOC Eliminator, which is aimed at the solid waste/landfill/compost, wastewater and oil & gas industries. The non-toxic, eco-friendly, non-pesticide product eliminates odor-causing compounds rather than masking them.
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BKT is a leading wastewater treatment solutions provider operating in the US, South Korea and Vietnam with a reputation for adopting innovative, environmentally sustainable technologies. Headquartered in Daejeon, South Korea, BKT has a distribution network in Southeast Asia serving over 400 customers in South Korea alone, in addition to eight other countries.
BKT and Tomorrow Water founder CEO Dong Woo Kim said Odor-No-More’s products have performed “extremely well” in their tests.
“Their team has demonstrated utmost expertise in creating innovative, eco-friendly solutions for air quality control in the wastewater treatment sector. We are looking forward to introducing these products to our customers,” said Kim.
Under the agreement, BioLargo will invest $100,000 in the joint venture, while BKT and its US-based subsidiary Tomorrow Water will invest $75,000 each, for proportionate non-dilutive interests.
The joint venture will manufacture CupriDyne Clean-based odor and VOC control products for distributors in Southeast Asia including BKT. The joint venture must achieve minimum sales targets to maintain exclusive rights in the Asian markets, and an annual dividend of $2 million will be paid to BioLargo to secure exclusive rights in perpetuity, said the company.
Investing $350,000 in BioLargo
Most importantly, BKT has agreed to invest $350,000 directly into BioLargo through a stock purchase agreement within 60 days.
“Not only is BKT a prominent and well-established solutions provider in the Southeast Asian wastewater industry, but they have demonstrated a commitment to innovation and research in the very DNA of their company,” said BioLargo CEO Dennis P Calvert in a statement.
“They are well-known for their quality service offering and integrity, and we at BioLargo are confident that together we will prosper through the formation of this joint venture,” he added.
Joseph Provenzano, president of BioLargo’s subsidiary Odor-No-More Inc said it’s “uncommon” to find an international distribution partner as capable as BKT.
“We are highly encouraged about the potential for this joint venture to grow sales of CupriDyne Clean and related products significantly,” said Provenzano.
BioLargo has developed several innovative and patented products targeted at three markets: water and wastewater treatment, industrial odor and volatile organic compounds elimination, and advanced wound care.
The company's stock recently traded up 4% to $0.24 a share.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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