Company: Environmental waste international
Listings :TSXV , US OTC
Ticker: $EWS $YEWTF Market cap at time of publication: $105 MCD
Stock price at time of publication: 0.425 CAD
Business: Tyre and waste recycling through reverse polymerization
TAM Market size: 158 billion $
Comparable peer : Scandinavian Enviro systems $SES
Environmental Waste International (EWI) today (22/3 2021) announced a major breakthrough for the company . The company has announced that they have entered a $10 MCAD joint venture agreement which will receive a $7 MCAD investment and which will also give their new partner the right to build three additional facilities for tyre recycling facilities in Ontario .
ESG Comment: This press release must be considered a major breakthrough for EWI. Parallell to a major facility being under progress by EWI’s danish partner Windspace in Denmark to build a 30 000 tonne facility in a contract worth potentially $100 MUSD . EWI is gaining clear momentum now with a partner in both Ontario,Canada and Denmark, Europe. The conversion of their test plant facility into a real commercial plant is truly a milestone in the company’s history. As of now the company has in total 4 planned or ongoing facilities.
The Joint Venture agreement will result in that the JV partner Torreco will convert EWI’s pilot plant in Sault Ste Marie, Ontario into the Company’s first commercial scale recycling plant utilizing EWS’s patented microwave technology. EWS will still hold a 30% ownership interest in the plant and receive a royalty in perpetuity on the revenue generated from the sale of valuable commodities produced from its environmentally friendly tire recycling process.
The details of the transaction is as follows from the press release :
“The investment by Torreco is being made via common share purchases of Ellsin Environmental Ltd. (“Ellsin”), a wholly owned subsidiary of EWS, which owns the Company’s waste tire facility in Sault Ste Marie including land, building and equipment. The $7 million will be used to expand and modernize the plant utilizing EWS’s latest technology . In exchange for the investment in Ellsin, Torreco will also be granted the right to build three additional waste tire facilities in Ontario over the next five years if it meets certain conditions.Torreco has made an initial share purchase in Ellsin of $400,000 and has committed to invest an additional $6.6 million over the next five months. After investing $7 million, Torreco will own 70% of Ellsin. The construction will require certain regulatory and legal approvals, and there can be no assurances that the entire $7 million will be invested.
Statements were released by both parties parallell to the press release:
Bob MacBean, CEO of EWS said, “Construction of our first commercial plant will be the most significant step in the Company’s evolution. We expect the ability to demonstrate our technology in a commercial facility to accelerate the Company’s growth.”
Mitch Ouimette, CEO of Torreco said, “Following an exhaustive due diligence process, we believe that the future of waste processing is through advanced and high-tech processing. EWI possesses the level of expertise and innovative technology to be a leader in converting waste to high value post-consumer products. This strategic partnership will strengthen both companies while raising the bar on waste processing.”
About Environmental Waste International Inc.
Environmental Waste International Inc. specializes in eco-friendly systems for the breakdown of organic materials, including tires. The Company has spent over 15 years engineering systems that integrate the EWS patented Reverse Polymerization™ process and proprietary microwave delivery system. EWS’s unique microwave technology safely processes and recycles waste tires, while recovering highly valuable commodities, including carbon black, oil and steel. Each unit is designed to be environmentally safe, energy efficient, and economically profitable for the operator. For more information please visit, www.ewi.ca.
I own shares in this company personally and this is not to be considered financial advise, always do your own research!
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