Micron Waste Technologies Attracts Investment from Major Licensed Producer
December 21st, 2017
Exclusive, News, Top News
The cannabis industry may be growing by leaps and bounds, but there have been many growing pains along the way. For example, the cannabis industry consumes roughly 1% of all electricity in the United States due to the need for indoor growing lights. The industry also produces a tremendous amount of compostable organic waste that is diverted to landfills because of regulatory red-tape and the high costs of off-site industrial composting.
In this article, we will take a look at Micron Waste Technologies Inc. (CSE: MWM), which aims to solve the latter problem, and a recent agreement that could accelerate the company’s commercialization timeline.
Cannabis Waste Problem
The cannabis industry generates a tremendous amount of compostable waste that is being dumped in landfills. While industrial composting systems are far more environmentally friendly than landfills, the cost of using these technologies has prevented many cannabis companies from accelerating the natural decomposition process. Some jurisdictions also tightly control plant waste in a way that doesn’t permit off-site composting.
Micron Waste Technologies Inc. has developed an organic waste digestion system that manages organic waste on-site, converting it into clean water. The aerobic digester technology leverages micro-oxygen cubicles to enhance the digestion efficiency of microorganisms by up to 95%, with the remaining 5% of undigested particles undergoing further treatment, resulting in clean water that meets municipal standards.
The company has initially deployed the technology into the food distribution and quick service restaurant industries, but more recently, it has begun to look at the cannabis industry’s waste problem. With flourishing industries in both the U.S. and Canada, the company could be addressing a large and growing end market that is in need of environmentally-friendly solutions to combat regulatory red-tape and the alternative – filling up landfills.
Partnership with Aurora
Aurora Cannabis Inc. (TSX: ACB) (OTC: ACBFF) recently announced a non-binding term sheet to make a strategic in investment in Micron Waste Technologies. If and when a final deal is approved, Micron will install its technology at one of Aurora’s cultivation facilities where both companies will work on optimizing to deliver a commercially-ready version. Aurora will then have the option to sign a definitive supply agreement to purchase more units and preferred pricing.
In consideration for participating in this process, Micron will pay Aurora a 4% royalty on gross revenues generated by Micron from the sale, lease, and/or support services agreement pertaining to units sold to companies in the cannabis industry. Micron will retain all intellectual property relating to the technology and will not have to pay the royalty for units sold to companies operating outside of the cannabis industry.
Aurora will also have the right to subscribe for up to six million shares of Micron at $0.34 per share for aggregate subscription proceeds of $2,040,000. This represents a 9% interest in the company on a non-diluted basis following the investment. Upon sale of the first unit within the cannabis industry, Micron will issue a further two million shares to Aurora. Aurora will also have the right to participate in future offerings to prevent dilution of its ownership stake.
“We are delighted to partner with the cannabis industry’s innovation leader and enter the remarkably dynamic, fast-growing cannabis sector,” said Micron Waste Technologies Inc. CEO Rav Mlait. “Aurora’s investment provides additional funds to accelerate diversification into other sectors, such as supermarkets, quick-serve restaurants, agricultural operations, and hotels, which are all faced with high organic waste disposal costs.”
Micron Waste Technologies Inc. (CSE: MWM) aims to solve a major problem facing the cannabis industry – compostable organic waste. With a partnership with a leading licensed producer, the company is well positioned to accelerate its development timetable and potentially generate significant revenue from this new vertical market.
For more information, visit the company’s website at www.micronwaste.com.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
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