Business
BIOREM Announces Sales of $3.3 Million in Alternative Energy Market, Working Capital Loan and Q3 Revenue Reduction
GUELPH, ON, Nov. 10, 2011 /CNW/ - BIOREM Inc. (TSX-V: BRM) ("Biorem" or "the Company") announ...
About this update from Biorem Inc.
[{"type":"text","content":"\n\n\n\n\n\nGUELPH, ON, Nov. 10, 2011 /CNW/ - BIOREM Inc. (TSX-V: BRM) (\"Biorem\" or\n \"the Company\") announced it has finalized two orders totalling $3.3\n million in biogas and energy from waste projects in the last few weeks.\n\n\nThe projects will purify methane from anaerobic digesters for use in\n electrical power generation from four different waste water treatment\n plant sites in North America.  Previously, the company accepted an\n order on an energy-from-waste project, funded under the Ontario Power\n Authority renewable energy program, for which Biorem will treat odour\n from the methane generation process.   These and other projects bring\n year to date biogas market sector orders to $5.1 million which have\n significantly exceeded our biogas sales targets for FY 2011.\n\n\n\"With our desulphurization technology and our excellent partners in the\n alternative energy market we have far exceeded our market entry targets\n for 2011\" says Peter Bruijns, President and CEO of Biorem. \"We are at\n the early stages of developing a solid position in the emerging\n alternative energy market. This market is providing growth that we\n anticipate may offset the market slowdown in our traditional odour\n control markets.\"\n\n\nIn addition, Biorem has entered into a term loan agreement with B47\n Investment Fund I, LLC for biogas project financing purposes in the\n amount of $637,500 which is due on May 8, 2012.  The effective annual\n interest rate on the loan is 17.75%.\n\n\nThe company made a management practice decision during the 3rd Quarter\n to improve liquidity by significantly shortening its order fulfillment\n cycle.  In doing so, Unbilled Revenue (and Work In Process) would be\n decreased as WIP converted to shipments and customer invoicing.  The\n net effect of this is a significant reduction in Revenues to $1million\n for Q3 resulting in a Comprehensive Loss exceeding $1.2 million.   The\n positive impacts of this are to improve the Balance Sheet by lowering\n AP, increasing AR leading to a stronger Cash position and a higher\n backlog of $16million.\n\n\nAbout BIOREM Inc.\nBiorem is a leading clean technology company that designs, manufactures\n and distributes a comprehensive line of high-efficiency air emissions\n control systems used to eliminate odors, volatile organi...