Water is the New Gold: Insider Briefing of 4 February 2021
Helping You Thrive in the World's ONLY Vital, Scarce and
We were joined by the amazing Ivan and Bella Anz. You'll want to hear their incredible contribution to OriginClear first-hand...And why Bella says "it is buying life for this and future generations!" Why do we believe real estate investors are diversifying into water? You'll see in this briefing how it all lines up with Water as a Career™ and our pre-funding strategy!
FEATURED OR COVERED IN THIS BRIEFING — QUICK LINKS
- Details on President Biden's "Buy American" order and how it affects small business.
- Why funding is key to our disruption and how water purchase agreements fit into it.
- Our new shortened business procurement cycle and how it speeds up water deals.
- Building OriginClear Financial and how real estate investors divesting ties in.
- OriginClear's revenue sources and how they are strategically planned to quadruple.
- Who Philanthroinvestors® is and how they are helping us.
- How Progressive Water Treatment is going to manage servicing the contracts in our new business model.
- CEO Philanthroinvestors, Arte Maren's, evaluation of OriginClear and why they licensed us.
- Investing real estate assets into OriginClear and the potential tax benefits.
- The amazing Ivan and Bella Anz and the incredible contribution they made to OriginClear.
- Why Ivan and Bella made the contribution and what they intend for the company.
- How one can participate and DO something about the state of water on Earth.
- The upcoming Trusted Investor conference. What it is and how to participate.
Transcript from recording
Well, good evening everyone. Welcome to the show, it's going to be very exciting, really, really, really great. This is "Water is the New Gold" and it is really, water is the new commodity. Nobody has yet figured out how to monetize this commodity in a way that, for example, gold or aluminum or whatever are and I think the time has come.
You've heard about the new water markets that are based on the California water rights. Much more like that coming. This is a commodity that's coming of age and we intend to be one of the pioneering players.
Forward Looking Statements
So, it is briefing number 96 and we're going to go straight into the Safe Harbor statement which basically says that we do our very best to tell you how it is but the Securities and Exchange Commission does not take any responsibility for what we say, and probably rightly so. Anyway, so of course, if you ever have any concerns about things that we say please do communicate with us because we are as transparent as possible.
Alright, so the first news of the night I wanted to cover is that there is a "buy American" order by the Biden administration. And it's very interesting because initially I was very skeptical , like, "Oh, this is another union play," and so forth and so on. But in fact the language is different and I think that's worth sharing with you because I think it is something that we can work with. Certainly we have every intention to use every disruption possible and to take advantage. So let's take a look at this clip.
Start of NEWS clip video presentation
January 25, 2021. Source: Reuters. Biden signs 'Buy American' order, pledges to renew U.S. manufacturing
Transcript from recording
Reporter: US President Joe Biden signed an Executive order on Monday aimed at strengthening US manufacturing. At a press conference Biden said he'd close loop holes in existing Buy American provisions to ensure the Federal Government purchases American made products.
To revitalize the manufacturing sector, which accounts for about 12% of the US economy, Biden will make federal contracts more transparent and create a senior position in the White House to oversee the process.
President Biden: "Under the previous administration, the federal government contract awarded directly to foreign companies went up 30%. That is gonna change on our watch. Today. I'm taking the first steps in my larger "Build Back Better" recovery plan that invests in American workers, unions and businesses up and down the supply chain."
Reporter: White House officials say Biden's push to revitalize manufacturing is key to driving up wages, creating union jobs and strengthening US supply chains. All of which have proved vexing for previous administrations, including former President Donald Trump. Biden's executive order applies to about a third of the $600 Billion in goods and services the federal government buys each year.
President Biden: "When we buy America, we'll buy from all of America. That includes communities that have historically been left out of government procurement, black, brown, native American, small businesses and entrepreneurs in every region of the country. "
Reporter: Biden also reiterated plans announced on the campaign trail last year to replace the fleet of federal cars with American made electric vehicles.
The AFL-CIO Federation of Trade Unions welcomed Biden's order in a statement saying, "This order is a good first step in revitalizing US manufacturing , which Trump's policies failed to do over the past four years."
China overtook the US as the world's top manufacturer in 2010 and was responsible for 28% of global output in 2018 according to United Nations data.
End of NEWS clip
Good for Small Business
Riggs: Putting aside the politics of everybody making everybody else wrong, I think this is positive. You heard, and this is what I really liked, is that he specifically said small business and that is very, very helpful. We're talking about a small piece of the economy, only $200 billion, but it's symbolically important. We do, even though we talk a lot about working with private industry, we do a lot of business with cities. We've implemented whole-city systems and so this is a good thing.
So, I wanted to recap, how do we speed up water deals? This is the big challenge that we face in 2020, especially myself and Ken Berenger VP Business Development, we worked super hard. The real problem was we had everything in place. We had technology, we had a great operation in Texas, we had the new modular technology and we just could not really achieve disruption the way I expected from being a dot-com executive.
WPAs are Hot
So we really looked into it and we realized that funding was the key and out of all the iteration that you've been hearing about; iteration meaning repeated attempts to get it right, we have these things called water purchase agreements (WPAs) which are becoming very, very hot in water.
Because you're behaving just like the city even though you're selling a private commercial system you're putting people on the meter and they can easily sign it because it's operating expenses. So regular budget. They already pay on the meter so no big deal.
And also it makes it much easier for us to compete with big vendors because when there are big vendors people get very, very conservative. But they're less conservative with something that they can always cancel if it doesn't work. And of course we have a very important roll-in, roll-out technology which allows us to repossess the systems and thus be less concerned about the credit worthiness of the client.
The Shortened Cycle
And quickly just recapping here the shortened cycle then is water purchase agreement, we build the system, they pay on the meter, it's done. As opposed to the months and months we go through when it's a capital purchase.
And of course the thing that we innovated last year which was waterpreneurs and the Water as a Career™ program which creates these mini water companies that, basically they're independent sales people just like Amway kind of concept. With the pre-funding they can survive. It would not happen if they didn't have the pre-funding and I gave the example of this premium hotel system being installed this quarter.
To make all this happen, of course, it's all great, but you've got to have the money. So that's where we're looking at real estate investors diversifying out of real estate. There's potential tax benefit which you can talk to us about directly. It's fairly complex and we're not going to get into them, but there are potential tax benefits. And we'll leverage the asset.
Equipment Placement and Management
Some people are becoming involved. They're investing in the fund and then they're finding places to place the equipment that is then funded, which is basically double-dipping in a way, but it's fine by us if somebody wants to invest to then commercialize the very same thing. In the middle of it, of course, we get our revenue. All right. And then we're doing well on the preliminary commitments.
Now, normally PWT, Progressive Water Treatment, only makes money from number one, building the unit. But now we're going to be operating the system for the investor. We're going to be providing the service contract, refurbishing the machine and OriginClear manages the funds. So this dramatically improves our revenue sources.
All right. So why am I going through all this again today? Because of course, the amazing Philanthroinvestor team has done so much for us. They took real estate Philanthroinvesting to the Inc. 500. And I can show you that right here. This was in the Inc. 5000 rather. There is Equity and Help, which is Philanthroinvestor's real estate venture. And they have three year growth, almost 4000%. Very, very nice. So they aim to do the same with us. And believe me, when Ivan Anz and Arte Maren get an idea in their heads, stand back. That's all I can say.
And we'll talk more about how Ivan specifically is getting involved. But before I go on, they are bringing real estate investors for the fund. They're doing an amazing job, because of course, they're already working with real estate investors. And they have a rule of thumb, which obviously is going to be borne out over time, but each $100,000 invested purifies a million liters per month in this new service model we're talking about, which, of course, has to be proven, Waterpreneurs, service model, et cetera.
Subcontractors to Service
Okay. I'd like to play a quick video before I go on to the stars of the evening. Darrell Polston, before I go on, how do you foresee people providing maintenance services to your systems? That's very good. Typically, it's done by a local contractor. So Progressive Water Treatment is in Texas. It can't be everywhere all at once. And so it puts in place subcontractors.
Let's say it installs a system in Alabama. Then there'll be an Alabama support. Joe the Water Guy or Jill the Water Lady, and they do it under contract. That's how it's done. And under this program, there is funding for it built right into the funding. And that's the beauty of water as a service, is that it's not just the hardware sale. It's the high-margin service sale. Okay. So let's take a look here at this cool video, shall we?
Start of video presentation
Transcript from recording:
[Radio chatter from NASA Manned Spacecraft Center in Houston to Moonshot crew]
"With all the resources we have, we can put a guy on the Moon, but our water is horrible The state of the cleanliness and the scarcity is scary. After all, we can't live without it. That's part of what we're embarking upon and that's what OriginClear is doing in terms of both saving and sanitizing water and on a much bigger scale.."
Arte: OriginClear has great bones. We looked into their plans. We looked into their current activity, their current fundamentals in the sense that they have not only earning capacity but they are earning and that earning is growing. While there was a lot of hope and a lot of intention, there was also a lot of activity backing it up. And we have that marriage of motivation and mechanics.
We were looking for, "Who are the other players?" It can't just be all Riggs. And it wasn't. They have some fabulous people. And these people are believers. And if you're an entrepreneur, if you're an investor, you know that there better be a whole bunch of believers, because there's obstacles. There's challenges.
And only with the, what we call, FCB, only with the faith, confidence and belief, do you get to ride over all of those barriers or challenges. I must say something also about OriginClear, incredibly innovative. Riggs Eckelberry, the CEO, is not only innovative and very disciplined, but ethical. It's one thing to be innovative and say, "Well, we can cut a corner here. We can cut a corner there..." No. When you have this marriage of integrity and innovation, now you got something and that's why we've done the licensing.
End of video presentation
Riggs: Wow. That is one very, very cool testimonial. And it speaks to how much due diligence this team has had.
Real Estate and OriginClear
Gina is asking, "I'm not sure how Philanthroinvestors® dealing with real estate has to do with OriginClear. please explain." Okay. So there's something happening right now in the world, which is a real estate... And real estate is a very unsettled environment. Some people are doing very well in it. Some people are doing terribly.
In general, real estate investors are interested in diversification. They see opportunities to make money other ways. And so we offer an easy path for those real estate investors to just go ahead and contribute their assets without having to even sell them. And this is this pioneering deal I'm about to tell you about.
Tax Sheltering Benefits?
Normally a real estate investor in America cannot get out of the squirrel cage, shall we say, the wheel of real estate investments because they won't get the tax benefit on the way out. Whereas they do if they keep rolling over into real estate. We offer a path to do that. We have that capability.
We believe we have an effective way to generate the tax shelters that they need to diversify their assets. So this is becoming very popular. And so we're now pioneering this. Philanthroinvestors in real estate, it happens to be that the Philanthroinvestors team is in real estate, huge success story. And so they are influencers. They're telling these investors, "Yeah. This is a good thing."
Walking the Walk
You know, it's all very well for Philanthroinvestors to recommend that investors go in, but sometimes it helps to walk the walk. And so, without further ado, I thought I would introduce my good friends. Ivan and Bella Anz who are going to join us, and I'm going to stop share so that we can have them on screen properly. There they are. They're in Puerto Rico. Hola, amigos.
Ivan: Hola, Riggs.
Bella: Nice to meet you.
Riggs: Es un gran placer trabajar con ustedes = It's a great pleasure working with you guys. And you moved from Argentina to Puerto Rico, am I right?
Ivan: Yes. You're right, Riggs. We moved to the enchanted island of Puerto Rico.
Riggs: Fantastic. Well, and then, of course you've been recommending to people to come invest in OriginClear, and specifically these real estate investors getting into the fund. You did something recently. What was it?
The Integrity of Being All In
Ivan: So, basically we start to analyze the future of water together. And when we get involved as an entrepreneur, when we are involved into a venture, Riggs, I highly believe that one needs to be all in for something to work. And one needs to set the example for the people that come behind. Because that has a much higher level of integrity. And when you have a higher level of integrity, then you not only feel inspired yourself, but you can inspire others much [more] easily in order to raise the intelligence, to do the things in a better way.
So we actually analyzed different things on the water market. And we thought, we didn't talk about when you go into the water count, Riggs, and when you see the statistics that is going on in the world, 5 billion people is without access to sewage systems. And there is 3000 liters of water that you have used just today, every single person, and 341,000 deaths from dirty water and related diseases just this year.
Riggs: Amazing. And you did something right here, as you're saying, you went all in and you have contributed, you and Bella, own properties, which are worth, we believe about $630,000, and we've agreed to make this acquisition of these assets to help develop the projects that will eventually, we believe, turn into the fund.
Ivan: Yes, we wanted to give momentum to the company. So we can actually give a push to the amount of liters of water that we can clean every single month and purify. And we will believe in the vision of OriginClear. It's the only licensed company with Philanthroinvestors around the world. And for what we are already perceiving is, it's the only water company that we want to license and make it what Tesla did to the energy and to the cars.
Ivan: We believe that we are to do it with OriginClear, to water.
Giving Momentum to the Company
Riggs: With your help, we are going to make it happen. I'm quite sure of it. I'm quite sure of it. Perhaps you could tell us a little bit about how... Let's go back to, what was it, May, when you first encountered us? And so, what were you looking for and what made you interested in working with us?
Ivan: Basically, the first thing that I saw, Riggs, is that I saw innovation and I saw integrity. And when I saw those points, I was looking for a company that, I wanted to diversify from different areas in the world, because Philanthroinvestors was born, it was originated by me 10 years ago in Argentina. And then I transferred it to the U.S. in 2014. And I take the company into the Inc. 500, et cetera.
But then I got this God revelation, which was "Ivan, Philanthroinvestors was not born just to actually solve one tiny problem in the planet," which is big, but it's one, and it's the fact that billions of families cannot live in their own homes. It was also born to solve other problems in the planet. Like 8% of the population has good quality air only, or 6,000 children die from water-related diseases.
So these problems is what I am trying to solve. And then I was looking for the company for water, and then I see a Facebook sponsor live or something. It says, "Water is the New Gold" ...OriginClear. And then I jumped into one of your webinars, this webinar, and we're talking like, seven months ago or something like that, right? And then I started doing [watching] more videos and more videos and get to know you more and get to know the team.
And we sit with Bella and then we share this idea, what this part of our plans for 2021 will be? And one of our main goals for 2021 is see OriginClear, highly, highly, highly successful. And seen as one of the icons in the world, but for companies. And so that's why we decided to actually support the company with part of our assets. So we can give this momentum to the company.
Behind the Decision
Riggs: Well, it certainly is amazing. And you've done a major step here, because now we can experiment with asset acquisition.
Riggs: We've had large investments in the company before as cash, but now, how do we bring in assets? We're pioneering the asset acquisition process, and then we don't necessarily have to sell it. Although it's a decision we can make along the way, but it's much easier for the investor to say, "Well, here's my deed. Oh, and here's the stock," and everybody's happy. So I really congratulate you and Bella for an amazing decision. Thank you.
Ivan: Thank you.
Bella: Thank you so much.
Ivan: Thank you. And Bella wanted to add some words also, in what she was wanting to support OriginClear and what she saw from her viewpoint. Because you k now and I don't need to tell you that she's my boss.
Riggs: (In Spanish) Totally.
Ivan: I always have the last word in our relation.
Riggs: Yes, dear.
Riggs: Please, Bella, do you want to say anything?
Bella: [In Spanish]
Ivan: I will translate for her.
Bella: [In Spanish]
Ivan: [Translating] What I see in this company is that I like the purpose a lot, and that I see that I am actually buying life for us and for future generations.
Riggs: Wow, that is very powerful, Muy poderosa.
Bella: [In Spanish]
Ivan: [Translating] I've been observing Riggs for many months and I perceived his ethics level. And I can basically see what are his true intentions, and that was very important for me to make this decision.
Riggs: Thank you, thank you so much. Thank you. It means a lot to me.
Bella: Thank you.
Riggs: Well, all right. So, just to recap here. We have a couple here that has personally invested their personal assets into OriginClear. Of course, Ivan and Arte and the whole Philanthroinvestors team are strategic partners of ours. But Ivan and Bella did not have to do this. This was not required, and yet they did it, and it's an amazing testimony to your dedication. I really want to thank you guys and let's continue, alright?
Ivan: Yes, this is just the beginning.
Riggs: [In Spanish] Let's continue, I'll come visit in Puerto Rico and we'll have some cafecito (coffee) together.
Ivan: Yes, yes. Wait, and Argentinian barbecue, right?
Riggs: Yes, I want an Argentinian barbecue. Oh my gosh. Absolutely, 100%. Well, thank you very, very much again. And stick around,
I'm going to briefly discuss what you can do about it, so you can participate. Ken Berenger, as you know, has been a key to the reorganization of our business model, adding what I think is the hammer to make the model work, which is this pre-funding.
Talk With Ken
And so he's brilliant, he will talk to you, schedule a call. Just type oc.gold/ken in your browser and you'll be in a discussion with him. Also, he and Devin, the very important Devin Angus, are going to be organizing this thing that I've been talking about, which is the trusted investor conference.
Trusted Investor Conference
Essentially a trusted investor is someone who has invested more than once, which means that they actually had a good experience and they did it again. This is not a fundraising event. This is where we really want to talk to you and listen to you and have this be productive. It's not going to be a webinar. You'll all be on screen, able to talk. Ken and Devin will be following up, and it will be a pleasure having you in the conference.
World Cancer Day
All right, I wanted to cover what Darrell Polston said, because he had a cool headline. Darryl says, "To celebrate world cancer day, save the water encourages you to be mindful of your health and what you consume. According to a new study, the majority of Americans have been drinking water containing forever chemicals that scientists have linked to testicular and kidney cancer. It's very important to think about water as a very important factor in people's health, especially cancer."
Re: Asset Acquisition
All right, Gina, "I own several apartment buildings in the Virginia Beach area, and I'm interested in how that deal was structured." So I will let you talk with Ken, who just posted to set up a chat, and I'm sure that he'll be able to do a good job with you.
Now we have an all new product release, a really interesting new product that is going to be coming out. And there's going to be some good coverage of that. We'll get some video, et cetera. And you're going to get to take a look in some of the cool stuff we're doing behind the scenes. Because it's not all investment, it's also getting it done, right?
Thank you all. Have a great night. I love how we're going. I love the progress and let's have a great weekend and a week ahead. Thank you all, and good night.
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