Bio2Pure Shareholder Update, 1 May 2020
Bio2Pure Shareholder Update, 1 May 2020
Introduction
We are pleased to distribute the first formal shareholder update for Bio2Pure. Whilst the world is facing some incredibly tough social, political and economic challenges the Company has to keep moving forward more than ever due to the social benefits that the bacteria brings to communities all over the world.
The Company has made significant progress since its incorporation early in 2019 and is now fully operational with order flow and a clear outlook to achieve its business goals.
Key highlights:
- Factory fully operational with ability to manufacture GBP100m of bacteria perannum
- Significant Reserch and Development progression allowing low cost production
- Appointment of Mr John Leat to the board who was previously Chief Executive of the Dubai Government Office London and advisor to The Ruler of Dubai and Vice President of the UAE, HRH Sheikh Mohammed bin Rashid Al Maktoum.
- 18 projects started in 15 villages in Haryana State of India to clean 18 lakes which are between 4 and 20 acres in size
- Significant progress made with regards to the Gurgaon canal project to treat 1 billion litres of water per day
- UK orders continue to flow through as well as orders for product from Vietnam
- Current assessment of a large project in Kuwait to treat contaminated sand
- Distribution agreement with TER group for their unique disinfection system.
- Launch of website www.Bio2Pure.com
- Partnership established with the charity World Water Crisis www.WorldWaterCrisis.org
Projects
UK
The plant and machinery is now in place and operational. Since November we have been in production but only recently have had the large bioreactor and steam generator installed and commissioned. This increases our capacity to make GBP100m per year, being the sales value of bacterial product. During this Covid 19 pandemic, the office and production facilities are still open servicing orders that we are receiving. As a lot of our domestic sales were products that were used in the hospitality business orders have become more sporadic. We still have orders from domestic clients for waste water and sewage treatment but they are slowing down as our distributors are not being allowed access to sites. While orders for the biological products have slowed, we have agreed a distributorship with a German company for a very effective, safe disinfectant based on stabilised chlorine dioxide. This type of disinfectant is the most effective on the market yet not hazardous to use. The products are currently getting the appropriate registrations and sales should commence in May. These products will be distributed
through the UK as well as India, Africa, Singapore and Malaysia
India
As probably everybody is aware, India has been in total lockdown for several weeks and the Prime Minister has indicated that it may well be extended past 3rd May. Of the projects we have currently, the project for the treatment of the lakes in the villages had started, commercial discussions for the treatment of two legs of the Gurgaon Canal irrigation system are at advanced stages and a start date was projected for September. Obviously, Coronavirus has had an impact on these and we are waiting for the lockdown to be raised to continue with the project. The project in the villages was developing well, civil work had started and good progress until rains meant delays in completion. This followed by the lockdown means we will not see the civil work completed for 2 to 3 months after the release of lockdown. After this period we expect to commence dosing the bacteria. During the last few weeks, we have entered into discussions with two other parties that wish to distribute the products in India, both are conveniently located to give coverage around whole country. We expect one of these parties to produce results quickly once the limitation on travel has gone.
Kuwait
We have been requested to investigate the possibility of our bacterial formulations treating sand contaminated with oil from the first Gulf War. In conjunction with a bioremediation company and a Kuwaiti partner, we are looking at the options for treatment. The research in our laboratories is currently being carried out and should be completed in the next 6 weeks. Following on from that, we will be looking at the commercial viability of supplying the microbial products from the UK or setting up a small satellite laboratory to grow the bacteria in Kuwait. Besides the treatment of the contaminated sand in Kuwait there are other commercial opportunities for bacteria sales in Kuwait itself and the other GCC countries.
Singapore and Malaysia
Through the Blue Planet Group we are looking to treat ponds and lakes throughout Singapore, Malaysia and other countries in the region. Blue Planet are a holding company that has several operating companies in the region and have wide experience with an impressive roster of advisors and directors.
DRC
We have been approached by the Special Envoy for the minister the State in the Democratic Republic of Congo to give a presentation on the treatment of ponds in villages.
Board Appointment
We are pleased to welcome John Leat to the Board. Below is his bio:
John is an international businessman with over 40 years experience as a company director, major project manager and global investor. After spending time in the Royal Navy, John began working for the Government of Dubai as private secretary to the ruler: Sheikh Mohammed bin Rashid Al Maktoum. Acting as Sheikh Mohammeds delegate outside of the UAE; John was responsible for the management of a wide range of activities covering property development, international investment and the promotion of Dubai. The growth of Dubai as a hub for tourism, trade and travel in the past 30 years was in no small part to projects overseen by John such as the launch of the Dubai World Cup and associated events. Chief among Johns responsibilities was coordination of Sheikh Mohammeds global investment in Horse Racing and Bloodstock. Managing the worlds largest horse ownership, training and breeding program; John was responsible for the establishment and management of Godolphin and Darley Stud Management among other ventures.
After thirty years running the Dubai Office London; John relocated to Switzerland to take company directorship for several private equity ventures involved in Telecommunications, Insurance and Gaming. Now based in London once again; John retains a valuable network of investors, entrepreneurs and business leaders who share his passion for innovation and sustainability.
Research and Development
The company has continued with its Research and Development work, particularly around the roles the bacteria can play in eating the proteins and fats that protect viruses. The accounts are currently being prepared to Year End 31012020 at which point the companys first Research and Development credit will be submitted. We will circulate the accounts with commentary once they are published.
Partnership with World Water Crisis
The Foundation World Water Crisis has been set up under the Charities Trust umbrella. The charity has a number of aims, all of which can be found on their website www.WorldWaterCrisis.org. Bio2Pure is a partner of the charity which will supply bacteria to them for their ongoing projects.
EIS Certificates
The company is still awaiting the EIS3 certificates. HMRC have asked an enormous amount of questions of the business for whatever reason and asked for a lot of additional evidence including lease agreements, sales invoices, purchase orders, ownership of Intellectual Property and many others. Our accountants Armstrong Watson have been dealing with them and are sending the full set of answers with all the supporting evidence to them. We apologise for the delay and if there are any queries about this please email and one of us will give you a call to answer any specific questions.
COVID19 Financial Relief
With the lockdown of the world this has also stopped any new orders coming in or delivery of orders going out. The company has applied for the GBP25k grant and will also be applying for the business interruption loan. The recent news of the Future Fund is also of interest as Bio2Pure is currently in negotiations with a debt provider which then could be matched by the Government fund, details of which can be found here https://www.gov.uk/guidance/future-fund
Summary
We have all seen first hand the devastation and disruption that a virus can bring and people’s awareness of this is at an all time high due to the global news coverage. The company believes that there will be a continued strong market for cleaning products and we are already seeing from volume of enquiries an increased awareness of viruses in water which are causing disease and illness, and therefore people are seeing the humanitarian benefits that the Bio2Pure products can bring with simple implementation. The management remains committed to its shareholders and is focused on enhancing shareholder value during 2020. We will keep you informed of the projects as things develop and hope the global lockdown restrictions are lifted shortly so that business can move forward.
In the meantime, we hope everybody stays safe and well.