BIOREM Announces Sales of $3.3 Million in Alternative Energy Market, Working Capital Loan and Q3 Revenue Reduction
GUELPH, ON, Nov. 10, 2011 /PRNewswire/ - BIOREM Inc. (TSX-V: BRM) ("Biorem" or "the Company") announced it has finalized two orders totalling $3.3 million in biogas and energy from waste projects in the last few weeks.
The projects will purify methane from anaerobic digesters for use in electrical power generation from four different waste water treatment plant sites in North America. Previously, the company accepted an order on an energy-from-waste project, funded under the Ontario Power Authority renewable energy program, for which Biorem will treat odour from the methane generation process. These and other projects bring year to date biogas market sector orders to $5.1 million which have significantly exceeded our biogas sales targets for FY 2011.
"With our desulphurization technology and our excellent partners in the alternative energy market we have far exceeded our market entry targets for 2011" says Peter Bruijns, President and CEO of Biorem. "We are at the early stages of developing a solid position in the emerging alternative energy market. This market is providing growth that we anticipate may offset the market slowdown in our traditional odour control markets."
In addition, Biorem has entered into a term loan agreement with B47 Investment Fund I, LLC for biogas project financing purposes in the amount of $637,500 which is due on May 8, 2012. The effective annual interest rate on the loan is 17.75%.
The company made a management practice decision during the 3rd Quarter to improve liquidity by significantly shortening its order fulfillment cycle. In doing so, Unbilled Revenue (and Work In Process) would be decreased as WIP converted to shipments and customer invoicing. The net effect of this is a significant reduction in Revenues to $1million for Q3 resulting in a Comprehensive Loss exceeding $1.2 million. The positive impacts of this are to improve the Balance Sheet by lowering AP, increasing AR leading to a stronger Cash position and a higher backlog of $16million.
About BIOREM Inc.
Biorem is a leading clean technology company that designs, manufactures and distributes a comprehensive line of high-efficiency air emissions control systems used to eliminate odors, volatile organic compounds (VOCs), and hazardous air pollutants (HAPs). With sales and manufacturing offices across the continent, a dedicated research facility, a worldwide sales representative network and more than 600 installed systems worldwide, Biorem offers state-of-the-art technology-based products and peace of mind for municipalities, industrial companies and their surrounding communities. Additional information on Biorem is available on our website at www.biorem.biz.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) Accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements based on current expectations. These forward-looking statements contain various risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Risks and uncertainties about the Company's business are more fully discussed in the disclosure materials, financial statements and MD&A filed with the securities regulatory authorities in Canada on www.sedar.com.
"Order Bookings" and "Order Backlog" do not have any standardized meaning prescribed by Canadian generally accepted accounting principles ("GAAP") and may not be comparable to measures presented by other companies.
Order Bookings and Order Backlog are non-IFRS measures that the Company uses to evaluate its sales performance. Order Bookings are those binding contracts that the Company enters into with a third party for the delivery of our products or services. As Order Bookings are received, the contract value (before any associated sales taxes) is included in the Order Backlog. The Order Backlog is reduced by the revenue that is recognized on each project and then adjusted for any currency changes.
SOURCE Biorem Inc.