Bion CEO Issues Shareholder Letter

Billings, Montana, May 02, 2025 (GLOBE NEWSWIRE) — The CEO of Bion Environmental Technologies, Inc. (OTC QB: BNET), a leader in advanced livestock and organic waste treatment and resource recovery technology, issued the following letter to shareholders:

Dear Shareholders (and other followers),

Apologies for the lack of recent communication. We continue to face headwinds. But despite what our share price decline might suggest, we have no intention of abandoning ship. The feedback we have received recently, regarding both our fertilizer and potential projects, is very encouraging. While we continue to struggle financially, we believe we have an opportunity worth struggling for.

For those that are new, I’m Craig Scott, Bion’s interim CEO. I have been involved with Bion, in one role or another, since 1993. Until last summer, I was Bion’s Director of Communications. After Dom, our previous leader/CEO passed, followed soon after by the early departure of his replacement, I stepped into the role last June. I’ll do my best in this letter to explain why my optimism and enthusiasm, while still cautious, is growing.

First, in my opinion, we did not fail – we were ‘late’ (and ran out of money). But we did not ‘fail’.

The technology is optimized, and it does work better than we’d hoped
Optimization at Fair Oaks is complete. Without getting technical, the system only has to ‘work’ about two-thirds as hard as we thought, in order to capture the ammonia. That will allow us to reduce the size of the system, lowering both capital and operating costs. We also made other improvements that will further reduce operating costs, along with fertilizer production costs. The platform showed it is reliable, robust and can maintain steady state under a range of less-than-ideal operating conditions, also keys to lower costs. We are working to get validation of its performance from our technology development partner, Buflovak, an engineering firm that is recognized for their work in evaporative systems. We believe that will help us find and pursue projects.

We are very encouraged by the response from fertilizer samples sent out in January
In January, we sent fertilizer samples to several distributors in the organic farming/grower market, as well as to retail consumer products manufacturers. We are very encouraged by the feedback we’ve received. We are satisfied there is a good market for our patent-protected fertilizer products, at prices that support our business model. We have engaged Allen Philo Consulting to represent us with distributors in the agriculture/grower market. Allen is an organic grower himself, an agronomist, and a recognized expert in these modern organic nitrogen liquid fertilizers. He has existing relationships with the larger organic fertilizer distributors and his agreement is heavily incentive-based. Our goal is to obtain several offtake commitments over the next two months that will allow us to enter the grower market with multiple distributors in 2026.

We are already engaged in discussions and testing on the retail consumer products side of the fertilizer market. There is a trend of using safer organic and natural products around the home, lawn and garden, especially in a family environment. The largest U.S. distributer of retail consumer fertilizers is leading this trend, committing to increasing their sustainable and organic product offerings. There is also a trend toward using organic and natural products on turf and landscapes at parks, playgrounds, schools, youth sports fields, and other locations where children play and recreate. We are developing strategies to address this large and evolving market. We have much work to do, and there is no assurance it will succeed, but again: it is very encouraging. We believe we are in the right place, at the right time.

We are now focused on finding projects to supply fertilizer demand
We are confident we have fertilizer demand. We need to find an initial supply we can get to as soon as possible. We can produce large quantities of fertilizer with big projects like Stovall Ranch, but the time to develop them and produce that fertilizer is two years or more. We believe we need to enter the market with smaller amounts, and by 2026. We received a new patent last year that extended our coverage to industrial sources, like food and food processing waste, slaughter/ rendering waste, and other organic wastes. These facilities are point sources under the Clean Water Act and are required to treat their waste streams to meet discharge standards. This compliance-driven market increases our flexibility and options when it comes to identifying potential projects. We are certain there are some out there that will allow us to meet that 2026 target – we just have to find them.

To find projects (and partners), we recently engaged Mike O’Brien as our Head of Business Development. Mike is a Bion investor. We met him in Pennsylvania because of our work at Kreider Farms. He is the former head of business development for Dutchland, LLC, a national manufacturer of anaerobic digesters. He is well-connected in the biogas space already, not shy, and is highly task-oriented and motivated. He also thinks we have a great opportunity in front of us and is turning over every rock in the stream, looking for projects and potential partners.

Mike and Jeremy Rowland, our long-time SVP Renewables, just attended the American Biogas Council trade show in Denver this week. They were more than encouraged by the interest in ammonia control solutions, including ours. The biogas industry is also facing headwinds. New projects are on hold due to uncertainty over the current Administration’s renewable fuels policy and declining LCFS credit prices. Ammonia control solutions create opportunities to improve existing infrastructure. Besides benefiting the operator, the engineering and construction firms that design and build those solutions benefit too, and they each have a ‘portfolio’ of projects that we could potentially fit into. Everybody wins. Jeremy and Mike were busy and have over 60 contacts to follow up with. The next steps are to vet those opportunities and potential partnerships. As with our fertilizer, we think we are in the right place, with the right solution, at the right time.

That brings us back to our financial issues
There is a reason for the ‘Going Concern’ letter in our filings/ financials. We continue to struggle in our efforts to raise capital and recently had to request forbearance on the BLG Note, which they granted. Our share price decline reflects the uncertainty of our situation, coupled with the fact we are thinly traded and have thirty+ years’ worth of legacy shares, many that were inherited, gifted, or have been escheated by various states. And again – we’re late. I believe as we get the company back on track, and the sellers flush themselves out, the market will improve.   

So far, we have been unwilling to accept the huge dilution that a financing at current share prices would bring, since we need to raise almost $3 million. We are pedaling as fast as we can and fortunately, several shareholders have stepped up to help. They have joined in loaning Bion money in a secured convertible note that does not tie its conversion price to today’s share price. They have provided ‘life support’ funding. Participation in the note is available to any of Bion’s accredited investors. As long as we continue to secure enough investment from shareholders, we won’t have to look outside the company and accept the all-but-certain dilution it will bring. That said, if we have to look outside for the survival of the company, we will.

Our strategy is based on the belief we are close to successes that could and should lead to a higher valuation and share price than we now have. We also believe that our path to those successes may reveal a strategic partner(s), such as an engineering, construction, or development firm, that also believes in our opportunity – enough to want to partner with us. It’s hard to predict exactly how this will play out, but we do know this: the fertilizer demand is there and we’re going to find opportunities to supply it. It is up to us to figure out how to put the two together.

We hope to have news of progress on all these initiatives soon. Meanwhile, I’ll leave you with this: when I became associated with Bion in the early 1990’s, we were solving environmental problems. The environmental problems have gotten worse, and they have now evolved into widely-recognized health problems, especially ammonia: PM2.5 and its links to asthma and respiratory disease; groundwater nitrates linked to childhood disease and cancers; toxic algae blooms with neurological health impacts we are just beginning to understand. Ammonia is our specialty. There is increasing focus on these issues and the science of measuring and understanding them continues to advance. We’re still here.

Thank you for your support and patience while we try to push through the storm.

Regards,

Craig Scott, CEO

Bion Environmental Technologies’ patented Ammonia Recovery System produces premium organic and low-carbon nitrogen fertilizer products and clean water from animal manure and other organic waste streams with biogas production. It supports sustainable livestock and renewable fuels production by preventing pollution, while recovering resources and improving economics. Bion is focused on establishing markets for its unique and patent-protected nitrogen fertilizer products and developing projects in livestock production and the renewable natural gas industry. See Bion’s website at https://bionenviro.com.   

This material includes forward-looking statements based on management’s current reasonable business expectations. In this document, the words ‘think’, ‘believe’, ‘if’, ‘hope’ and similar expressions identify certain forward-looking statements. These statements are made in reliance on the Private Securities Litigation Reform Act, Section 27A of the Securities act of 1933, as amended. There are numerous risks and uncertainties that could result in actual results differing materially from expected outcomes. Potential investors are strongly encouraged to review our SEC filings, available on sec.gov and otcmarkets.com.

Contact Information:
Craig Scott, CEO
[email protected] 
(406) 281-8178 (direct)

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