BioLargo Inc (BLGO)

[silversmith]

This is an interesting story and a promising tech. But the company share structure is nothing but dangerous for investors. I come from the water industry, and this tech might prove to be huge. But the company share structure is going to take a very large portion of investor wealth before they can clean the mess up. I would like to take a position here, and may yet, but I don't see how anyone can be meaningfully long in BLGO.

At some point, probably next year, the C-suite will have had some success under their belt and decide it is time to move to the big boards; maybe NASDAQ. About the only way they can easily do that is by enacting an at least 10 for 1 reverse split. And the news will just drop out of the sky. No warning, no cover. As this year unfolds, BLGO will turn to the 10 million dollar equity line of credit to finance the increasing cost of operations from supporting the municipal trials. The lender will convert and sell into the market to cover risk, so the share count outstanding will rise higher.

It's a shame, really, for such a promising story. The company has existed on the backs of investors in the age old story of not enough time, not enough people, not enough resources, and not enough money to take the tech where it needs to go. So they end up with a messy share structure that at some point needs to be cleaned up, almost always at the expense of the common share holders.

I will keep watching. There ought to be a way to make at least some money trading this.

All the best,
Silversmith