BioLargo sees demand increasing for its Clyraguard Personal Protection Spray that decontaminates personal protection equipment

BioLargo Inc (OTCQB:BLGO) announced Monday increasing demand for its Clyraguard Personal Protection Spray, a disinfectant designed to decontaminate medical devices such as face masks and other personal protection equipment (PPE).

“The product has been met with great enthusiasm, and sales are ramping up,” the company said in a statement.

As part of a multi-phase product roll-out plan, subsidiary Clyra Medical Technologies has secured a $1 million inventory line of credit and formed relationships with three contract-manufacturers that are actively producing the spray.

READ: BioLargo says July sales doubled its monthly average thanks to new personal disinfectant

BioLargo said that distribution partners for Clyraguard are just beginning sales activities, having recently received their initial inventory. 

Given the sales achieved in recent weeks and volume of orders in process, BioLargo said it expects to report substantial revenue increases from product sales in the third quarter of 2020. 

Company management reports that its current manufacturing resources are capable of producing up to one million Clyraguard units per month before it would need to expand with additional contract manufacturers.

In other company news, BioLargo said its Water division will soon start the first commercial project for its AOS water treatment system, which will be funded by government grants and its client and is expected to generate more than $500,000 in revenue over the life of the project.

The company also said its BioLargo Engineering unit manufactured a medium-scale demonstration pilot prototype of the BioLargo AEC, the company’s per- and polyfluoroalkyl substance (PFAS) water treatment technology. The company will start two field demonstration pilots of the AEC in the coming months.

And the company revealed that its ONM Environmental (formerly Odor-No-More Inc) subsidiary is restarting multiple capital projects that were on hold due to the coronavirus (COVID-19) pandemic, and was recently notified of an award for a project valued at about $130,000.

BioLargo’s company-wide revenue for the three and six months ended June 30, 2020, were $418,000 and $856,000, respectively, which was a 2% decrease and a 8% increase over the same periods in 2019. Sales at the company’s operating divisions decreased at the start of the pandemic, but are now rebounding, it added. 

BioLargo said it continues to strengthen its balance sheet as it has been converting about $3.5 million of debt to equity since December 31, 2019, through to August 2020.

“In the COVID-19 pandemic, we demonstrated our resiliency as we managed to maintain stable operations, cleaned up our balance sheet, developed and launched a brand new product (Clyraguard) to help frontline workers battling the pandemic, and made multiple adaptations to be a strong solutions provider in a global pandemic,” BioLargo CEO Dennis Calvert said in the results statement.

“We’re now seeing our hard work translate to increasing sales. We have a number of new relationships with distribution partners that we plan to share more information about as they begin selling Clyraguard. While the commercial opportunity for Clyraguard is immediate and has the potential for significant commercial success, the rest of our technology portfolio continues to advance, and we remain confident about their future,” he added.

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Story by ProactiveInvestors