Why BLGO Could be a Game Changing Opportunity

Date : May 25, 2020

New Opportunity:  BioLargo Inc. (OTCQB:BLGO)

  • R&D powerhouse with collaborations spanning top universities, governments and industry leaders
  • Bringing powerful assets to market for water treatment, clean air, engineering, and antimicrobial applications
  • Just announced results of a study conducted at a national lab showing its subsidiary’s disinfectant spray can kill SARS-CoV-2 completely without damaging N95 masks – could be a game-changing discovery in the COVID-19 fight
  • Coming off record quarter/year in terms of sales and growth, low debt levels


The following report is based on our independent research of BioLargo Inc. (OTCQB:BLGO) from publicly available information, including information from the company’s website and investor relations material, as well as news, disclosures, press releases, and other material relevant to understanding the company and its operations and assets. We have been engaged to disseminate our findings from that research process along with our opinion about BioLargo based on that research.

 

BioLargo has a ton of credibility on the R&D front, and is well-positioned to be a solution provider amidst a global pandemic.

The structure is a larger entity with a number of subsidiaries that function like operational segments. One of the most interesting facets of this story right now – because it has direct and powerful implications for the COVID-19 pandemic crisis – is BLGO’s subsidiary, Clyra Medical, which offers patented and patent pending effective, and safe, advanced antimicrobial products.

The hot item at present is Clyra’s FDA-registered Class I general purpose disinfectant, for PPE. Clyraguard TM, features an extremely high antimicrobial efficacy (99.999% kill rate – complete inactivation) while remaining safe on skin.

More specifically, recent testing conducted under oversight by the Galveston Nat’l Lab (one of the top official BL4 infectious disease labs in North America working in association with the CDC and NIAID) showed Clyraguard inactivates SARS-CoV-2 “the virus that causes the COVID-19 virus” below the limits of detection of the testing model.

And, perhaps most importantly, the product works on personal protection equipment like masks, while remaining safe on skin. As we reviewed the product, we believe this is huge for healthcare and frontline workers. The supply of masks is one of the most powerful limitations we face in fighting this invisible monster. Hospitals have only a limited number of the coveted “N95” quality masks. And they can only be reused a few times before accumulating too much potential risk. However, until now, most hospitals have been struggling to find a way to clean the masks without damaging them.

Bleach doesn’t work. Too damaging for the microfibers that filter out the particles. Same story for alcohol. One study shows that vaporized hydrogen peroxide may work. But you need an industrial vaporizer room. Some hospitals have started to use a commercial oven system invented at the University of Michigan. But you don’t always have a commercial oven around when you need one!

Most frontline contexts aren’t going to contain that type of equipment, and many of these sorts of processes are scheduled and take a period of several hours.

By contrast, Clyraguard is a simple spray that is totally safe for human skin and mucus membranes. You can spray it right at your face with no danger. And it doesn’t hurt the mask or you, but it has been proven at a national lab that eliminates the COVID-19 pathogens.

The market started to figure this out last week when local news started carrying the story as BLGO’s subsidiary donated a lot of bottles to healthcare facilities once it found out the stuff worked so well.

The stock has popped about 40% higher on rising volume since then. But, given the scale of the problem and the potential for this product as a solution – and the fact that the company has been posting record growth data before this discovery – there could be a blue skies above for the BLGO chart from here.

 

Symbol:  BLGO
Company:  BioLargo Inc.
Quote:  http://finance.yahoo.com/q?s=BLGO
Latest News: 
http://finance.yahoo.com/q/h?s=BLGO+Headlines
Company Website:
www.biolargo.com

Who is BLGO

BLGO

BioLargo Inc. (OTCQB:BLGO) is an innovator of technology-based products and environmental engineering solutions provider driven by a mission to “make life better”. As noted above, the company is working to help combat the COVID-19 crisis. This includes the development and deployment of hand sanitizers, a design for a low-cost emergency ventilator (answering the call for innovation from the Department of Defense), and exploring expanded uses for its FDA 510(k) cleared Wound Irrigation Solution and other iodine-based product opportunities.

But there’s much more to this story than just battling COVID-19.

The company focuses on unique disruptive solutions to deliver clean air, clean water and a clean, safe environment (www.biolargo.com).

BLGO has a deep and expansive R&D facet, with collaborations that read like a who’s who list of top teams.

The company’s engineering division features experienced professional engineers dedicated to integrity, reliability, and environmental stewardship (www.biolargoengineering.com). Its industrial odor control division, Odor-No-More (www.odornomore.com) features CupriDyne Clean Industrial Odor Eliminator (www.cupridyne.com), which eliminates the odor-causing compounds and VOCs rather than masking them, and is now winning over leading companies in the solid waste handling and wastewater industries and other industries that contend with malodors and VOCs.

BLGO’s subsidiary, BioLargo Water (www.biolargowater.ca), develops the Advanced Oxidation System “AOS,” a disruptive industrial water treatment technology designed to eliminate waterborne pathogens and recalcitrant contaminants with better energy-efficiency and lower operational costs than incumbent technologies.

And its partially owned subsidiary (approximately 36%), Clyra Medical (www.clyramedical.com), features effective and gentle solutions for chronic infected wounds to promote infection control and regenerative tissue therapy.

Clyra is also now the focus of a potential game-changing solution for healthcare workers based on huge data from CDC researchers that just hit the wires, as we discuss immediately below.

Recent Catalysts

Most importantly, the company just announced that Clyraguard, the product developed by its partially owned subsidiary Clyra Medical Technologies in response to the COVID-19 pandemic, has been successfully shown to cause complete inactivation of the SARS-CoV-2 virus in laboratory testing.

According to the release, testing was done under the supervision of Dr. Slobodan Paessler, DVM, PhD at the Galveston National Laboratory at the University of Texas Medical Branch at Galveston.

The Galveston National Laboratory in Galveston, Texas is a high-security National Biocontainment Lab. The lab is run by The University of Texas Medical Branch at Galveston (UTMB) for exotic disease diagnosis and research. UTMB-Galveston is one of the 15 biosecurity level 4 facilities in the United States and the largest one in the world located on an academic campus. Our team can’t find a product that matches the claims of Clyraguard.

BioLargo President & CEO Dennis P. Calvert commented, “We are very proud of the Clyra team for creating this powerful tool to help fight the spread of SARS-CoV-2. Clyraguard will help protect people as we continue to fight the spread of the pandemic and will help people get back to living their lives.”

Clyra Medical put out its own press release as well, announces that “it has received test results showing that its proprietary copper iodine antimicrobial and antiviral product, Clyraguard™, successfully inactivated the COVID-19 coronavirus (SARS-CoV-2 virus), the virus responsible for the current worldwide pandemic. Testing was conducted by the laboratory of Dr. Slobodan Paessler, DVM, PhD, a Distinguished University Chair in Biodefense at The University of Texas Medical Branch at Galveston. The results of the laboratory study are expected to be published in a formal scientific paper as soon as possible.”

The company further noted that Clyraguard is a personal protective spray designed to help prevent cross contamination of the personal protective equipment worn by front-line healthcare workers by the SARS-CoV-2 coronavirus, the cause of COVID-19 disease. Registered with the FDA as a Class I general purpose disinfectant, Clyraguard features an extremely high antimicrobial efficacy at 99.999% kill rate (complete inactivation), and the recent testing showed it inactivates the COVID-19 coronavirus below the limits of detection of the testing model.

The company also just put out its 2019 Annual Report on Form 10-K, which featured a long list of catalysts and accomplishments that demonstrate the firm ground this market cap is resting on right now:

  • New $10 million equity line of credit with initial $250,000 investment from Lincoln Park Capital.
  • $350,000 investment from South Korean leading wastewater treatment company BKT Tech Co. Ltd. in conjunction with the formation of our first international joint venture to manufacture and distribute CupriDyne Clean based products in South Korea and the region (in the same transaction, BioLargo invested $100K into the newly formed joint venture).
  • Record revenue in 2019 (>$1.8 million), growing total revenue by 37% over prior year.
  • Record revenue in Q4 of 2019 (>$560,000).
  • South Korean joint venture to commercial CupriDyne Clean formed, funded and is about to begin operations.
  • Executed a 5-year white label distribution agreement with Cannabusters, Inc. to supply odor and VOC control products to the cannabis and hemp industries, considered to be an emerging and high-growth odor and VOC control market.
  • Expanded infrastructure, obtained a general contractor’s, plumbing, and electrical licenses to support ongoing work to serve customers with expanded design, build, service, install, and maintenance support.
  • Developing a product to remove PFAS (per- and polyfluoroalkyl substances) contaminants from drinking water with EPA support (through a Phase I SBIR grant), a widespread and serious contamination issue emerging across the globe.
  • Won contracts to provide environmental engineering services to seven U.S. Air Force bases.
  • Awarded five contracts by a national potato grower and processor to provide engineering design and installation support for Air Pollution Control system upgrades at multiple facilities in the Pacific Northwest, which will begin when the COVID-19 crisis subsides.
  • Recently answered a call for innovation by the Department of Defense to develop a design for a low-cost emergency ventilator capable of providing emergency support during the COVID-19 crisis.
  • Completed a commercial design for an AOS treatment unit capable of treating large volumes of water, with manufacturing work currently in progress.
  • Successfully executed field demonstration pilots for its disruptive AOS water treatment technology in three markets.
  • Agreed to develop a full-scale commercial water treatment system plan with Sunworks Farm.
  • Received FDA 510(K) clearance for its first wound care product.
  • Entered into discussions with strategic partners to facilitate clinical trials and distribution for multiple Clyra products.
  • Assembled a world-class medical advisory board with more than 30 esteemed medical professionals, physicians, wound care experts, and medical industry experts.

We believe BLGO is moving a number of high-potential chess pieces across the board right now, with implications that suggest strong growth ahead on both COVID and non-COVID themes.

Technical Analysis

Our analysis suggests that BLGO shares have been tracing out the contours of a revolutionary change in technical posture in recent weeks. The stock has broken above price level resistance and downward trendline resistance to carve out what appears to be a potential bullish inflection, which is supported by price oscillators like MACD and RSI.

The pullback this week is now keying fresh support on the topside of those busted levels and lines to offer a potentially interesting low-risk/high-probability technical/pattern-based setup/opportunity for interested speculators.

Systematic targeting for the setup presents at the $0.30 level based on prior inflections and likely sources of overhead supply that could be triggered on a sudden, sharp upward move in price per share.

About BLGO

BLGO (BioLargo Inc.) focuses on unique disruptive solutions to deliver clean air, clean water and a clean, safe environment (www.biolargo.com). BLGO has a deep and expansive R&D facet, with collaborations that read like a who’s who list of top universities, governments and industry leaders

The company’s engineering division features experienced professional engineers dedicated to integrity, reliability, and environmental stewardship (www.biolargoengineering.com). Its industrial odor control division, Odor-No-More (www.odornomore.com) features CupriDyne Clean Industrial Odor Eliminator (www.cupridyne.com), which eliminates the odor-causing compounds and VOCs rather than masking them, and is now winning over leading companies in the solid waste handling and wastewater industries and other industries that contend with malodors and VOCs.

BLGO’s subsidiary, BioLargo Water (www.biolargowater.ca), develops the Advanced Oxidation System “AOS,” a disruptive industrial water treatment technology designed to eliminate waterborne pathogens and recalcitrant contaminants with better energy-efficiency and lower operational costs than incumbent technologies.

And its subsidiary, Clyra Medical (www.clyramedical.com), features effective and gentle solutions for chronic infected wounds to promote infection control and regenerative tissue therapy.

Our Team Highlights the Following Key Points:

  • BLGO just released a study thru its subsidiary Clyra Medical, that has proven effective at completely inactivating the SARS-CoV-2 killer spray safe to use on faces and PPE, could revolutionize the N95 mask dilemma plaguing the healthcare system on the frontline and become a major retail solution for businesses and households
  • BLGO has validated commercial viability with early revenues coming in at $1.9M.
  • BLGO saw record revenue in 2019, growing total revenue by 37% over prior year.
  • BLGO recently won contracts to provide environmental engineering services to seven U.S. Air Force bases.
  • BLGO is coming off an RSI trough under 40, pointing to a massively oversold stock now heading back the other way.
  • BLGO just recorded a MACD Bullish reversal, suggesting a technical change in trend.
  • BLGO recently broke above key sloped and price level resistance with technical resistance now sitting above as much as 75% higher.
blgo

Conclusion

We believe BLGO is one of the most interesting stocks we have profiled in a while because the company has such a well-established R&D backbone, resilience, determination, diversity and so much of it appears to be applicable to themes with remarkable relevance in the current pandemic reality.

But this is much more than “just another COVID play”. There’s a lot of meat on the bone.

That said, its special copper-iodine PPE spray solution has Performance and safety and features that separate it from every other product we have seen in the market. The Clyraguard spray holds the potential to completely change the game.

That said, we encourage you to review the base material on this company for yourself and take note of the factors that may hinder its ability to fully manifest its potential over time. For example, the company needs additional capital; regulatory factors are unpredictable and could impact long range results, and the company hasn’t yet proven its ability to significantly ramp sales in a newly launched product – while we believe this is going to change, prospective investors should be aware that this presents a risk.

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