BioLargo, Inc., developer of sustainable technologies and a full-service environmental engineering company, announced that it had executed a “Joint Venture Framework Agreement” with a leading wastewater treatment solution provider based in South Korea (Bookang Tech Co. Ltd., “BKT”), to create a South Korean entity that would manufacture odour and VOC control products based on CupriDyne® Clean, the award-winning product of BioLargo’s subsidiary Odor-No-More, Inc. The parties intend to form the joint venture (JV) promptly and begin operations as soon as possible.
CupriDyne Clean is Odor-No-More’s patented product that controls odours and VOCs at landfills and transfer stations operated by the largest waste handling companies in the United States. CupriDyne Clean is lauded for its gentle, non-toxic, eco-friendly, non-pesticide formula that works by eliminating odour-causing compounds rather than masking them.
BKT is a leading wastewater treatment solutions provider operating in the USA, South Korea and Vietnam with a reputation for adopting innovative, environmentally sustainable technologies and practices. Headquartered in Daejeon, South Korea, BKT has an extensive distribution network throughout Southeast Asia serving more than 400 customers in South Korea alone, and has a presence in more than eight countries globally.
CEO and Founder of BKT and Tomorrow Water Dong Woo Kim commented on the formation of the JV with BioLargo, “Odor-No-More’s products have performed extremely well in our tests, and 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.”
Under the terms of the agreement, BioLargo will invest $100,000 (S$138,750) in the JV, while BKT and its U.S.-based subsidiary Tomorrow Water will invest $75,000 (S$104,062.50) each, for proportionate non-dilutive interests. The JV will manufacture the CupriDyne Clean-based odour and VOC control product for distributors throughout Southeast Asia, including BKT. The JV must achieve minimum sales targets to maintain exclusive rights in the Asian markets, and an annual dividend of $2 million paid to BioLargo to secure exclusive rights in perpetuity. Finally, BKT has also agreed to invest $350,000 USD directly into BioLargo, Inc. through a stock purchase priced at market prices at closing, which is contemplated within 60 days.
BioLargo President & CEO Dennis P. Calvert said, “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. 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.”
Joseph Provenzano, President of Odor-No-More, Inc., commented, “It’s uncommon to find an international distribution partner as qualified and capable as BKT, and for this reason we are highly encouraged about the potential for this joint venture to grow sales of CupriDyne Clean and related products significantly.”