BioLargo strengthens balance sheet by eliminating nearly all of its convertible debt

BioLargo Inc (OTCQB:BLGO) reports that it has eliminated nearly all of its convertible debt to strengthen its balance sheet. The company paid off $406,000 in convertible debt that would have come due in August 2021, through cash and equity.  Other than the debt owed by its partially-owned subsidiary Clyra Medical Technologies Inc, BioLargo said only Small Business Association and Paycheck Protection Program (PPP) loans totaling $464,000 ($314,000 of which, has been applied for forgiveness) and $50,000 of fixed-price convertible debt (due in 2023) remain on the company’s balance sheet.  READ: BioLargo says PFAS toxic chemicals solution hits major technical milestone, paving way for commercial trials "This is quite an accomplishment considering just three years ago we had $7.6 million of debt on our balance sheet,” said CEO Dennis Calvert in a statement. “With our financing commitment having over $6 million remaining, we are confident that we can continue to fund our operational needs as we launch our exciting new environmental technologies and grow our revenue." BioLargo said it took on significant risk three years ago by investing heavily in its environmental platform technologies and the infrastructure to support them -- especially its patented low-energy advanced water treatment technology the Advanced Oxidation System (AOS), and the Aqueous Electrostatic Concentrator (AEC), an affordable and eco-friendly solution to treat water contaminated with per- and poly-fluoroalkyl substances (PFAS). Since that time, the company said it has advanced both technologies to a point of commercial readiness, with the AOS having already been successfully deployed in several demonstration pilot projects. BioLargo also noted that it made a major decision to form its own engineering company, BioLargo Engineering, Science & Technologies LLC in Oak Ridge, Tennessee.  "Our engineering division has become a pillar of our company, having played a crucial role in the development and scaling up our AOS and AEC technologies,” Calvert said. “Our company-wide revenues also have grown significantly, helping make it possible to pay off the debt we used to finance these ambitious development efforts." He added: "With this debt behind us, our platform technologies ready for commercial launch, and key industry partnerships taking shape, it's time to grow our business." Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham