Boon Industries (OTCMKTS: BNOW) has been quiet for the past year and finally broke its silence with an update letter from its chairman to its shareholders. The company broke into the COVID-19 space in a major way with their DiOx product. DiOx is An Activated Chlorine Dioxide (CIO2) broad-spectrum disinfectant which kills organisms within 60 seconds with no residual toxicity. DiOx+ is 100% degradable and environmentally safe. The chairman headlined the
- First Press Release since May of 2020
- Project $25M in sales over next 3 years
- OTCMarkets lists float at just 90,838 shares
- Environmentally safe disinfectant product for COVID-19 & Food Industry
- Key Take-Aways from the Corporate Update
The DiOx+ can be used almost everywhere and since the disinfectant product is green friendly, it can be used to kill germs and battle COVID-19 almost anywhere. The company, according to their website www.Dioxplus.com, is marketing their innovative disinfectant to 8 unique submarkets. One category is it can be used in the home, being that we all have one, this means that everyone is a potential user of the product. Prior to COVID-19, people that participated in enhanced cleanliness were classified as germaphobes and now they are seen as any other person who is worried about catching the virus. Consumers are different now, this pandemic has taught them the necessity of proper cleaning, hygiene and disinfecting potential contaminated items due to high traffic exposure. It will be years before people potentially go back to their old ways of letting their guard down and no longer worry about germs, viruses and infectious diseases.
Business owners must maintain a clean operation in order to meet state and federal regulations along with providing a safe environment for their patrons. This includes dental and medical offices, hospitals, gyms, hotels and everyday workplace.
Schools are another great market the company can capture. Parents are greatly concerned about the health of their children and do not want them exposed to toxic chemicals. DiOx+ is nontoxic and will give parents peace of mind. Distance learning, using an online classroom format via a platform like Zoom, has been a real burden on many mothers and fathers who are juggling working from home or are expected to still go to work and somehow watch and tutor their children at home. Parents need to have their kids in school so they can stay employed. Some schools are using a hybrid option that has ½ the kids going into school on Monday and Tuesday and the other half in school Thursday and Friday and have distance learning the days not in the classroom. Wednesday and over the weekend are days the janitorial staff will do a thorough disinfection of the classrooms to limit the potential spread of the virus. DiOx+ is the perfect solution to assist in keeping classrooms safe.
Last, the restaurant and food industry has been in the news also, as there are talks of food shortages due to food workers falling ill out in the fields or at processing plants and truckers who move products from distribution centers to individual restaurants and supermarkets. Boon Industries’ revolutionary disinfectant solution is safe to be used to spray down meat and poultry along with fruits and vegetables in the fight to kill germs and infectious diseases.
BNOW is Waking Up…Start of a News Cycle?
As previously mentioned, the last time Boon Industries had news was in May of 2020, which was 8 months ago. The company has publicly been dormant since that time, although there are plenty of indications that the company has been busy building the business and is waking up.
One indication is the company name and ticker change from LOFB (Leap of Faith Beverage) to Boon Industries (BNOW) on December 4th of 2020. The investor community slowly found the significance of the name and ticker change as the PPS (price per share) ran from a low of .05 on 12/4/20 to a high of .20 just a week later on minor volume (a 400% pop). The change was the first indication that the company was alive and working behind the scenes. Even though the company as mentioned traded lightly, it still found a way to move up dramatically because BNOW is a “low-float” stock. According to OTCMarkets.com, the public float (the number of shares available to trade in the public market) is only around 90,000 shares. This means the company can be very volatile in a good way, as the supply is unavailable if the demand suddenly increases.
Last Thursday’s press release was a corporate update which is common practice for companies that are about to start a news cycle. The last group of press releases were May of last year and there were 3 announcements in an 8-day period. A corporate release tends to lay the foundation which foreshadows what management will do or announce in the near term. Let us dissect the news release and guess what’s on the horizon.
5 Key Points from Corporate Update
These are the things we feel the investment community need to focus on and can be potential press releases in the upcoming days, weeks, and months.
Point 1 – Justin Gonzalez, Chairman and CEO, stated “The Company has completed its testing and compliance for its new product DiOx+. The Company has also received an EPA establishment number for the production of DiOx+. There are several immediate purchase orders from commercial buyers, and various GSA contractors evaluating the product for military, civilian and government applications. This could hint that a future release regarding a government or military contract or order is in the works.
Point 2 – “Our auditing firm is finalizing the Form-10 and the company anticipates being a fully-reporting issuer this quarter, along with up-listing to the OTCQB. This will change the dynamics of institutional investor opportunities for our market, and strengthen our trading analytics. Cut and dry… Look for an UPLISTING to OTCQB. A penny stock company does not go down the uplisting pathway that includes expensive quarterly filings and auditing, on top of a $10-12k QB fee unless they are 100% serious and feel they will have revenues to be able to afford the additional fees to not only stay afloat but thrive.
Point 3 – “The DiOx+ technology benefits i) the Agriculture & Food Processing sector for use as an anti-microbial pesticide, sanitizer and/or disinfectant for fruits and vegetables, and meat processing, ii) the Consumer Packaged Goods sector will utilize the product as a more cost effect oxidizing agent to disinfect and sanitize, – This hints the company has found an untapped market in the food and agricultural industry… look for a possible news release or contract order in this space.
Point 4 – Commercial Logistics for use to reduce operational costs using DiOx+ to sanitize and disinfect warehousing and distribution centers, iv) the GSA/Health Services will use DiOx+ for a more effective solution to sanitizing and disinfecting applications, especially for Covid and other viral strains in medical facilities. – Another area the company is focusing on and we have read about how Amazon, Postal Service and other delivery companies have been rumored to be taking precautionary measures and are sending packages/goods through UV (Ultra Violet) lamps or sanitizing the boxes at every checkpoint along the way. In fact, this past December, a rumor was going around that the spray was causing burns to pets’ mouths that were biting on the cardboard boxes that were supposedly treated or sprayed. Although the website SNOPES proved this to be “false”, BNOW’s DiOx+ would in fact give companies a green friendly option to sanitize cargo in the future.
Point 5 – “The company has completed Phase I & II of building its production plant and corporate offices in Grass Valley, California, and has started production, bottling, labeling and shipping of its DiOx+ product. Projections during the next 3 years are approximately $25M. – This tells us the plant, labels, bottling etc is all ready to go and will start filling orders as soon as they come in. It is no longer an idea, the company is well positioned to deliver. They predict doing $25million in sales over the next 3 years which is helpful for us to figure out a possible valuation. We will look for future orders and for the company to amend their sales projections accordingly as sales happen or not happen.
The company has a very nice share structure and has been cleaned up after a 1350:1 reverse split performed a year ago. According to OTCMarkets.com and Friday’s close, BNOW has 6,856,954 shares outstanding with a miniscule float of nearly 90,000 shares. Based on the Friday close of $0.11/share, the company’s market cap is approx. $754k which leads us to believe they are significantly undervalued based on the company’s projections of doing $25M in revenues over the next 3 years. Using the conservative valuation model of 1x sales, and assuming an increase each year over the next 3 years, we will go out on a limb as say the company may do $5M in revs in 2021, $8M in revs in 2022 and $12M in revs in 2023. The corporate update mentioned Phase 1 and 2 were completed so hopefully the share structure will not change much. So, based on $5M in sales and dividing that by 7 million outstanding shares, we get a valuation of $0.714/share. Since DiOx+ also can be considered a “biotech” or a COVID-19 related play, companies in these categories have been seen to trade at much higher multiples than only 1x sales. Based on 2x sales, we could see $1.44 and a multiple of 5x sales would bring a whopping valuation of $3.56/share… making it a convincing argument that Boon Industries is undervalued as it trades at only $0.11/share. Based on the low float of 90,000 shares, the anticipation of multiple future press releases and the public realizing just how undervalued BNOW might be, trading in this company could get exciting very quickly.
WHEN INSIDER FINANCIAL HAS A STOCK ALERT, IT CAN PAY TO LISTEN. AFTER ALL, OUR FREE NEWSLETTER HAS FOUND MANY TRIPLE-DIGIT WINNERS FOR OUR SUBSCRIBERS. WE SPECIALIZE IN FINDING MOMENTUM BEFORE IT HAPPENS!
Disclosure: Insider Financial and its owners do not have a position in the stocks posted and have posted this article for free without editorial input. This article was written by a guest contributor and solely reflects his opinions.