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Applied UV, Inc. (NasdaqCM: AUVI ) ("Applied UV" or the "Company"), a pathogen elimination technology company that applies the power of narrow-range ultraviolet light ("UVC") for surface areas and catalytic bioconversion technology for air purification to destroy pathogens safely, thoroughly, and automatically, announces Shareholder letter.
Dear Applied UV Inc., Shareholders,
I am writing to reflect on the Company's 2021 accomplishments and provide to the extent possible, insights into our focus for 2022. Despite the pandemic that crippled the world, 2021 saw the company complete significant positive milestones that, in my opinion, were truly historic in nature. Given the herculean effort put forth by our entire Team and Board, what we accomplished as a public company since the completion of our Initial Public Offering almost 18 months ago, in my opinion, is not currently being recognized in our valuation.
Why we are we here! The Center for Disease Control states that 1 in 25 patients have at least one Hospital Associated Infection (HAI) annually and that 3 million serious infections occur every year in long-term care facilities. Scientists globally have been advocating improving air quality post pandemic, significantly boosting global adoption to control airborne pathogen transmission. Governments globally mandating health agencies to address air quality via grants and mechanisms to ease visitation and protect facilities against future pathogens (Centers for Medicare and Medicaid Services February 2022 Long-term Care Initiative). Indoor air quality has become an even more important issue as world economies start the recovery process. In 2021, 39 scientists reiterated the need for a "paradigm shift" and called for improvements in, "how we view and address the transmission of respiratory infections to protect against unnecessary suffering and economic losses." Most recently, on March 22, 2022, the Federal Government through the Environmental Protection Agency (EPA) issued "Clean Air Guidelines" aimed at improving air quality in public spaces to prevent the transmission and spread of airborne related pathogens. In addition, on March 25, 2022, the White House announced its "Clean Air in Buildings Challenge" through the Office of Science and Technology Policy. This initiative is seen to emphasize what scientists globally have been championing. In its launch, the White House explained, "Research shows changing the air in a room multiple times an hour with filtered or clean outdoor air — using a window fan, by using higher MERV filters in an Heating, Ventilation, and Air Conditioning (HVAC) system, using portable air cleaning devices, and even just opening a window — can reduce the risk of COVID-19 transmission — with studies showing five air changes an hour reduce transmission risk by 50 percent. And, improving indoor air has benefits beyond COVID-19: it will reduce the risk of getting the flu, a common cold, or other diseases spread by air, and lead to better overall health outcomes." Lastly, in addition to this, the global air purifier market size is set to grow exponentially. It was valued at $9.24 billion in 2021 and is predicted to grow to approximately $22.84 billion by 2030. According to Precedence Research, the immense demand for air purification and sterilization in the US will be driven by the commercial sector. While these are merely statistics, our mandate and mission is to rapidly build a science-based pathogen elimination platform that is safe effective and simple, that protects businesses, facilities and people around the globe.
What we have accomplished – Since our inception, the Company has completed a $5.8M IPO, a $7.3M follow-on offering, a $13.8M Series Preferred and, a $9.2M Secondary offering all of which enabled the completion of three acquisitions (Akida Holdings, Kes Science and Technologies and Scientific Air Management) which position AUVI as a fully integrated company offering total pathogen disinfection platforms (Air & Surface). With the acquisitions complete, our wholly owned subsidiary, SteriLumen addresses the ever-changing challenges of air and surface pathogens, healthcare-acquired infections ("HAIs"), hospital borne infections (HBI's), protecting businesses, the facilities they occupy, their employees, and consumers who frequent them. The Company's products are targeted for use in facilities that have high customer touch and turnover which, include hospitals, hotels, commercial facilities, sports arenas, dental offices, schools, food processing, post-harvest, cannabis grow facilities, long-term care and other public spaces. As we continue to grow and build out our air purification and surface disinfection platform portfolio, we are continually looking for synergistic, attractive air purification businesses to allow us to gain further market penetration and share. We also will seek out low-cost opportunities to bolster our legacy hospitality business, Munnworks. The recent Visionmark ( www.visionmarknyc.com ) asset acquisition is an example of just that, as it expands our reach further into the luxury hospitality world of hotel construction and remodeling beyond its core mirror business while also potentially contributing top line revenues to Munnworks.
The Company's product portfolio is currently used by globally recognized names including Walmart, Whole Foods, SuperValue, Delmonte, Esmeralda, Joel Goet Wines, Athena Healthcare, NYC Health and Hospitals, Kaiser Permanente, Advent Health, University Rochester Medical Center and Baptist Health South Florida. This past year, the Company's product portfolio expanded its reach and deployed its air purification products into The Palace Versailles, Uruguayan School Systems, Tennessee Department of Corrections, Armed Forces Research Institute of Medical Sciences (AFRIMS), US Army Aberdeen Proving Grounds, Schools throughout South Korea, NYU Medical Center, University of Rochester Medical Center, The Federal VA Hospital System, Baptist Health South, Kaiser Permanente Medical of California, and, New York Health + Hospital Corp.
The Company works with a global base of distributors to sell both its air purification and surface disinfection products as well as the Munnworks product lines. The past year, the Company has signed distribution agreements covering Africa (360BioPharma), US Healthcare (Axis), Lootah Batta Water and Environment (United Arab Emirates), and Plandent Division, a wholly owned subsidiary of Planmeca Oy (Scandinavia). The Company plans to continue to expand its global distribution base of significant breadth and scale to introduce the entire air purification and surface disinfection product lines to new markets. These include Long-Term Care, healthcare, prisons, cannabis grow facilities, wineries, food preservation, and logistics. By leveraging the synergies of the acquired companies, taking advantage of global cross sales and marketing initiatives through its international distribution base, the Company plans to launch one of the largest, targeted, multi-faceted marketing campaigns in our short history led by a Fortune 500 executive with extensive experience in this regard.
The Company's product portfolio is one of the only research-backed, clinically proven pure-play air and surface disinfection technology companies with international distribution and globally recognized end users, with product developed for NASA. In addition to the numerous recognized research institutions and globally recognized names who published the reports that were completed by the acquired companies, Airocide was independently proven to kill SARS, MERSA and Anthrax. This past year saw independent testing verifying that the Company's air purification (Airocide) and surface disinfection (Lumicide) products were proven to kill both Candida Auris (Resinnova Laboratories) and SARS CoV-2 (COVID-19) (MRIGlobal).
It is important to note, we are driven by a single competitive principal, which is that we have a patented, disruptive air purification and surface disinfection technology platform that is differentiated by the global customers who use it to protect their facilities and customers and, the independent studies validating its efficacy. Our enthusiasm could not be any higher about the impact that our air purification and surface disinfection platform could have as the world's businesses and economies re-open from this three-year pandemic armed with a technology that can prevent this type of global disruption from re-occurring in the future.
We have updated our website with the most recent Investor Presentation that covers more of our plans for 2022. You can also find more information maintained at www.applieduvinc.com .
In closing, as true of rapidly growing companies, we are well along the learning curve, are extremely mindful of the challenges and grateful for the opportunities. I can assure you that the entire team and board are solely focused towards refining our path forward and the result will be a stronger company with a board and senior management team possessing the expertise to navigate this exciting next chapter in our corporate history. On behalf of the entire management team and board, thank you for your continued support. As we continue this journey, it is our sincere hope and expectation that we will unlock shareholder value and the truest potential through focused execution. Please feel free to contact me directly with any questions.
Best Regards,
Max Munn
Interim Chief Executive Officer / Director
About Applied UV
Applied UV is focused on the development and acquisition of technology that address infection control in the healthcare, hospitality, commercial and municipal markets. The Company has two wholly owned subsidiaries - SteriLumen, Inc. ("SteriLumen") and Munn Works, LLC ("Munn Works"). SteriLumen's connected platform for Data Driven Disinfection™ applies the power of ultraviolet light (UVC) to destroy pathogens safely, thoroughly, and automatically, addressing the challenge of healthcare-acquired infections ("HAIs"). Targeted for use in facilities that have high customer turnover such as hospitals, hotels, commercial facilities, and other public spaces, the Company's Lumicide™ platform uses UVC LEDs in several patented designs for infection control in and around high-traffic areas, including sinks and restrooms, killing bacteria, viruses, and other pathogens residing on hard surfaces within devices' proximity. The Company's patented in-drain disinfection device, Lumicide Drain, is the only product on the market that addresses this critical pathogen intensive location. SteriLumen's Airocide® air purification devices are research backed, clinically proven, and developed for NASA with assistance from the University of Wisconsin. Airocide® is listed as an FDA Class II Medical device, utilizes a proprietary photocatalytic (PCO) bioconversion technology that draws air into a reaction chamber that converts damaging molds, microorganisms, dangerous airborne pathogens, destructive VOCs, allergens, odors and biological gasses into harmless water vapor and green carbon dioxide without producing ozone or other harmful byproducts. Airocide® applications include healthcare, hospitality, grocery chains, wine making facilities, commercial real estate, schools, dental offices, post-harvest, grocery, cannabis facilities and homes. For more information about Applied UV, Inc., and its subsidiaries, please visit the following websites: https://www.applieduvinc.com/ ; https://sterilumen.com/ ; https://www.airocide.com https://kesscience.com ; https://scientificairmanagement.com www.airoclean420.com and, https://munnworks.com/ .
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward-looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements include, but are not limited to, statements contained in this press release relating to the view of management of Applied UV concerning its business strategy, future operating results and liquidity and capital resources outlook. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company's actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220407005770/en/
For additional Company Information:
Applied UV Inc.
Max Munn
Applied UV Interim CEO
max.munn@sterilumen.com
Contact:
Brett Maas, Managing Principal
Hayden IR
brett@haydenir.com
(646) 536-7331
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