Company: Vicinity Motor Corp(formerly Grande West Transportation ) Listings :TSXV , US OTC SOON to be up listed at Nasdaq Ticker: VMC.V (previously BUS ,) BUSXF at US OTC Market cap at time of publication: $223 MCAD Stock price at time of publication: $7.23 CAD ( reverse split price 2,41 CAD) Business: Leading supplier of electric, CNG, gas and clean-diesel buses for both public and commercial enterprise use in the U.S and Canada Comparable peer : Greenpower Motor , Market cap $545 MCAD Website: https://vicinitymotorcorp.com/
The Company expects to begin trading on the Nasdaq on Wednesday, July 7, 2021 under the symbol “VEV”. The Company’s common shares will continue to trade on the OTCQX until market close on July 6, 2021. The trading symbols for on the TSX Venture and Frankfurt exchanges will remain unchanged.
“The listing of our shares on the Nasdaq represents a significant milestone for Vicinity Motor as we leverage our strong momentum to accelerate sales of our next-generation electric vehicle (EV) products,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “We believe a Nasdaq listing will help elevate the Company’s public profile, expand our shareholder base, improve liquidity and enhance shareholder value.”
“We continue to see traction in the marketplace, delivering 20% more vehicles in the first quarter of 2021 than we did in all of 2020 combined. We believe that our growth in the future will be driven by our breakthrough Vicinity Lightning™ EV bus, as well as our new VMC 1200 Class 3 EV truck. Both of which have seen strong support from government agencies, private operators, dealers and transit authorities for the electrification of their fleets. We expect additional EV innovations we have been developing to further solidify our position as a leader in this market. VMC is well positioned for continued growth and we have the human and financial resources in place necessary to support that growth. We look forward to sharing our story with a wider network of Nasdaq investors.”
ESG comment: The long awaited NASDAQ uplisting confirmation has arrived and it’s a joy to see one of our biggest conviction portfolio companies advance to Wall Street. This opens up Vicinity Motors to a far larger private investor market as well as for larger institutional investors. It will be very exciting to follow how this can affect the stock price both on a short, medium and longer term especially since there are many more expensively valued competitors listed on the NASDAQ exchange.
We own shares of this company personally.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.
Companies may or may not be paying us for content posted on this blog.
Company: Vicinity Motor Corp(formerly Grande West Transportation ) Listings :TSXV , US OTC SOON to be up listed at Nasdaq Ticker: VMC.V (previously BUS ,) BUSXF at US OTC Market cap at time of publication: $2223 MCAD Stock price at time of publication: $7.29 CAD ( reverse split price 2,43 CAD) Business: Leading supplier of electric, CNG, gas and clean-diesel buses for both public and commercial enterprise use in the U.S and Canada Comparable peer : Greenpower Motor , Market cap $472 MCAD Website: https://vicinitymotorcorp.com/
Vicinity Motor Corp today announced its Vicinity Lightning™ EV bus, as well as its recently announced line of EV trucks, have received eligibility for customer rebates of up to 33% of the purchase price through the Canadian Province of British Columbia’s CleanBC Go Electric Program.
The CleanBC Go Electric Specialty Use Vehicle Incentive Program is one of a suite of programs offered under the Province of BC’s CleanBC Go Electric Program. The program is funded through the Ministry of Energy, Mines and Low Carbon Innovation and is administered by the Fraser Basin Council Society. The program provides a maximum rebate of $100,000 or 33% of the purchase price per vehicle, whichever is lower. The program website link is https://pluginbc.ca/suvi/.
“This significant rebate opportunity for customers, such as this rebate in B.C., will propel the already strong momentum for our breakthrough Vicinity Lightning™ EV bus offering and recently announced VMC 1200 Class 3 EV truck,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “The continued support from the forward-thinking local, provincial and national governments of Canada for electrification is significant. The new rebates from the CleanBC Go Electric Program are intended to encourage and accelerate the adoption of zero-emission vehicles (ZEVs) in British Columbia for both their environmental and economic benefits – and our Lightning™ EV and VMC 1200 Class 3 truck perfectly aligns with these goals by providing the versatility to support countless transit and industrial applications.
“These savings can be significant for our prospective customers, ranging from over $40,000 for a medium duty Class 3 vehicle, to the maximum $100,000 for our extended range 168 kWh Vicinity Lightning™ EV. We believe the rebates will further position our EVs at a price point very suitable for mass deployment, increasing sales and building shareholder value,” concluded Trainer.
To view the new introductory sales video for the VMC 1200, please visit here.
ESG comment: Vicinity Motors has previously sold over 200 buses to BC transit which operates over 1100 buses in British Columbia. This rebate is extremely beneficial for the company as the already have a strong presence in the Canadian province of British Columbia. This rebate should further help accelerate the electrification of British Columbiaand also generate more sales for Vicinity Motors!
We own shares of this company personally.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.
Companies may or may not be paying us for content posted on this blog.
Company: Environmental waste international Listings :TSXV , US OTC Ticker: $EWS $YEWTF Market cap at time of publication: $52 MCD Stock price at time of publication: 0.205 AD Business: Tyre and waste recycling through reverse polymerization TAM Market size: 158 billion $ Comparable peer : Scandinavian Enviro systems $SES Website: https://www.ewi.ca/
Environmental Waste International ) announces that as of June 1, 2021 it added two key team members to enhance the Company’s capabilities as it moves into the execution phase of previously announced commercial projects.
Shafique Chowdhury P.Eng., PMP joined EWS. As Project Manager he will be responsible for the execution of EWS projects in Canada and Europe. Shafique has over 18 years of experience in a variety of engineering and project management roles at manufacturing, heavy industry and mining facilities in Asia, Europe and North America.
He has a Master of Engineering (M.Eng.) degree in Manufacturing, Design & Management from the University of Toronto and a master’s certificate in Project Management from the Schulich School of Business, York University, ON Canada.
Caleb Cond P.Eng., joined EWS as the Company’s senior Electrical Engineer. He will be responsible for the electrical systems design in all of the Company’s plants going forward. Caleb has over 18 years of experience in similar environments and has assisted the Company from time to time over the last 10 years at its full-scale pilot plant in Sault Ste. Marie Ontario and at the Company’s facility at the US Department of Agriculture.
Caleb has a B.A. Sc., Electrical Engineering (Honours) from the University of Ottawa with a specialist focus on Systems Engineering.
Steve Kantor, the Company’s Chief Technology Officer, said “These are key additions to the EWS engineering team and bring the skills, experience and hands on knowledge that will ensure we are able to fulfill our obligations to our customers and seize on our opportunities for our shareholders. Their experience will be a significant factor in executing EWS’ strategic plan and will help the Company to fulfill the commercial potential of its technology.”
We own shares of this company personally.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.
Companies may or may not be paying us for content posted on this blog.
Company: Vicinity Motor Corp(formerly Grande West Transportation ) Listings :TSXV , US OTC SOON to be up listed at Nasdaq Ticker: VMC.V (previously BUS ,) BUSXF at US OTC Market cap at time of publication: $208 MCAD Stock price at time of publication: $6,94 CAD ( reverse split price 2,31 CAD) Business: Leading supplier of electric, CNG, gas and clean-diesel buses for both public and commercial enterprise use in the U.S and Canada Comparable peer : Greenpower Motor , Market cap $472 MCAD Website: https://vicinitymotorcorp.com/
The majority of the warrants exercised were since the date that Vicinity initiated the acceleration provision of its outstanding warrants issued in connection with its October 2020 private placement. As of the date of this press release, zero warrants remain outstanding in Vicinity.
“We are pleased to have received $7.5 million in proceeds from these warrant exercises, further fortifying our balance sheet,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “This stands as a testament to the value our shareholders see in our future prospects, and we would like to thank them for their ongoing support. We look forward to continued operational execution in the months ahead as we march towards a near-term targeted Nasdaq uplisting.”
We own shares of this company personally.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.
Companies may or may not be paying us for content posted on this blog.
Company: Vicinity Motor Corp(formerly Grande West Transportation ) Listings :TSXV , US OTC SOON to be up listed at Nasdaq Ticker: VMC.V (previously BUS ,) BUSXF at US OTC Market cap at time of publication: $200 MCAD Stock price at time of publication: $6,70 CAD ( reverse split price 2,23 CAD) Business: Leading supplier of electric, CNG, gas and clean-diesel buses for both public and commercial enterprise use in the U.S and Canada Comparable peer : Greenpower Motor , Market cap $500 MCAD Website: https://www.grandewest.com/
Vicinity Motors , today released specifications for the new VMC 1200, a fully electric Class 3 medium-duty commercial truck.
Powered by a cutting edge 150 kWh Li-Ion battery and an electrical powertrain that provides up to 150 kWh of power and 800 Ft Lbs. of torque, the VMC 1200 has a 6,000-pound load capacity and an expected range up to 150 miles on a single charge. The medium duty electric truck leverages Vicinity’s proven EV experience in a popular cab-over design at an attractive price, making it well suited for urban environments and construction or delivery applications.
Standard features include driver conveniences including a high-back comfort seat, keyless entry, air conditioning, power windows and door locks, 3-person seating and the ability to use the battery for on-site power, eliminating the need to transport large, noisy generators. The vehicle is capable of fully charging from a level 3 EV fast charger in 2.5 hours and from a standard level 2 charger in as little as 5 hours. For a complete list of specifications, please visit the Company’s website at https://vicinitymotorcorp.com/images/VMC1200SpecificationsFlyer.pdf.
The all-new Vicinity 1200 Fully Electric Class 3 Truck
“With our final design specifications in place, the VMC 1200 can now be ordered by our robust network of existing dealerships throughout North America,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “Production of the vehicles is underway and commercial deliveries are scheduled to commence in the first quarter of 2022. Our sales team is already introducing the demonstration VMC 1200 model to our dealer network and are very pleased to see very strong interest in it.”
“Due to expected heavy order flow for the VMC 1200, we have planned production levels of up to 1,000 units in 2022. We look forward to building a strong source of supplemental growth through this zero-emission line of medium duty trucks to complement our full line of Vicinity Lightning™ and Classic buses.”
Meanwhile Vicinity Motors is valued still at only 200 MCAD and we estimate that revenues for 2021 will be landing between 50-75 MCAD and for 2022 with this new product launch we estimate between 100-200 MCAD in revenues depending on production capacity. These projections indicate an EV/Sales multiple between 2,5-4 for 2021 and 1-2 for 2022. It’s fair to say that Vicinity Motors , which are growing at triple digit speed is undervalued compared to other electric vehicle producers.
We own shares of this company personally.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.
Companies may or may not be paying us for content posted on this blog.
It’s been a while since we last gave an update on our ESG portfolio. Since our last update we have been active in our reallocation of funds. New additions have been made and old positions have left our portfolio. Moving forward we will aim to update our readers on our portfolio atleast once a month, more often than so if changes are made to the portfolio. We have decided to concentrate our portfolio as it was too diversified previously.
Below you will find a list of our updated portfolio . New additions will have the (NEW!) symbol next to it and will be marked in bold style. To simplify for our readers we have also made a short list of all the positions we’ve sold with a short explanation.
Newlox Gold has implemented a unique, environmentally friendly and socially responsible process to profitably produce gold. There will be a comprehensive analysis on this company within the next month. Newlox Gold has identified a lucrative yet neglected niche within the precious metals industry and has commissioned it’s first high-grade, low-cost gold producing plant in Latin America. Newlox focuses on the re-processing and remediation of artisanal tailings and toll milling of artisanally mined ore; a strategy which results in very high margin operations while delivering environmental and social benefits to local stakeholders. We will be doing a bigger analysis on this company in the coming months.
Char Technologies – (NEW!) Tickers: YES , CTRNF Listings: TSX venture and US OTC
Char Technologies is the leading cleantech and environmental services company when it comes to converting woody materials and organic waste into renewable gases (RNG), hydrogen and biocarbon. Char technologies is converting challenging organic streams into greenhouse gas neutral biocoal, second generation Renewable Natural Gas”(RNG)” and hydrogen. You can find our extensive analysis of the company here .
Desert Control offers the solution that can revolutionise the war against desertification which is one of humanity’s greatest challenges since every year millions of people become climate refugees due to infertile lands. The patented product Liquid Nano Clay (LNC) from Desert Control can turn desert sand into fertile soil in less than 7 hours. A process which previously has taken between 7 and 12 years. This is a true game-changer. Desert Controls product offers a strong value proposition for customers with short payback times. Their LNC product reduces water consumption up to 50% and increases crop yields up to 62%. Payback times for customers on water consumption alone is expected between 1-2 years. Changing desert to the green land also reduces CO2 emissions by between 15 – 25 tons/hectare annually. We will be doing an extensive analysis on this company in the coming months.
Absolicon is our only exposure to the solar and thermal heating industry. We’ve previously written an extensive analysis on the company which you can find here . The company has recently raised 6 million USD in funds for its rapid international expansion. Since our analysis the company has signed an additional two framework agreements and also started a massive collaboration with the billion dollar company ABB for international sales and support. The company also has ongoing customer discussions with 10 of the world’s 20 largest beverage producers. We believe its only a matter of time before the “ketchup effect” is visible in Absolicon’s sales pipeline.
Earthrenew – (NEW!) Ticker: ERTH / VVIVF Listings: CSE Canada and US OTC
Earthrenew is a very exciting addition to the ESGFIRE portfolio on which we will be doing an extensive analysis on in the coming months. Earthrenews patented thermal processing technology transforms livestock manure into a powerful, all-natural organic fertilizer that promotes plant growth and restores soil health.This means, in simple terms, that farmers which use Earthrenew products not only get higher yields by 20-40 % on their crops but it also enables for the soil to sequester(store) more carbon. Studies have also shown that farmers who use this fertilizer on average saves the climate for aproximately 1 tonne of carbondioxiode for each tonne used compared to chemial fertilizer. The best part of the equation is the product is priced at the same level as chemical fertilizer and with possible carbon credits the products is actually cheaper. No wonder the company is sold out completely for 2021! The company’s plan is to increase their output to 400 000 tonnes by 2024-25 equalling revenues of about 140 million CAD.
Stockwik ESG Comment: We took profits on this company since it’s been in our holdings since early 2018. After 800 % returns we decided the time had come to realize our profits.
Enzymatica ESG comment: We left this position since we feel the company needs time to grow into its evaluation after the latest disapointing financial reports.
Thermal Energy international ESG comment: Temporary exit since we’ve found other better risk/reward positions at the moment.
Blue Bird Corp ESG comment: Exit due to better risk/reward in the EV sector with Vicinity Motors Corp.
Fusion Fuel and Hydrogenpro ESG comment: Temporary exit since there has been heavy selling pressure on the hydrogen sector. There is also a strong price pressure on hydrogen as a commodity therefore we are currently evaluating our exposure to the hydrogen market.
We hope you enjoyed our portfolio update and don’t forget to subscribe to always stay ahead of the herd as we always aim to give our subscribers a head start before we release our blog posts on our other social media channels!
Legal Disclaimer
We own shares of these companies personally.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. Our posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.
Companies may or may not be paying us for content posted on this blog.
Company: Vicinity Motor Corp(formerly Grande West Transportation ) Listings :TSXV , US OTC SOON to be up listed at Nasdaq Ticker: VMC.V (previously BUS ,) BUSXF at US OTC Market cap at time of publication: $208 MCAD Stock price at time of publication: $6,93 CAD ( reverse split price 2,31 CAD) Business: Leading supplier of electric, CNG, gas and clean-diesel buses for both public and commercial enterprise use in the U.S and Canada Comparable peer : Greenpower Motor , Market cap $500 MCAD Website: https://www.grandewest.com/
Per the terms of the supply agreement, Le Groupe Transbus has ordered three of the Company’s 30-foot Clean-Diesel Vicinity™ Classic buses. The Vicinity buses are in service with Canadian public transit agency EXO, serving the city of Varennes, a suburb of Montreal. Transbus currently owns and operates nine Vicinity™ Classic buses, with this order bringing the total to 12 in its fleet.
CEO William Trainer gave a comment to the latest order: “Our Vicinity™ Classic buses continue to prove their market leadership and flagship status with Canadian transit authorities as we attract recurring orders from our large base of satisfied, long-term customers,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “We look forward to growing alongside our North American transit partners as they deploy an increasingly large fleet of our buses and eventually transition to an EV-oriented fleet. Vicinity’s recent contract award with Calgary Transit is the first significant competitive tender in Canada for mid-size electric buses. The Vicinity Lightning™ product is already showing to be an early leader in the EV transit market space and is ready for this transition.”
ESG comment: Vicinity Motors continues to deliver orders and maximizing shareholder value. This time its for their Clean Diesel model. The company has been very active with press releases lately and we are looking forward with much anticipation for the long awaited NASDAQ uplisting of which there should be news of soon !
We own shares of this company personally.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.
Companies may or may not be paying us for content posted on this blog.
Company: Char Technologies Ltd Listing: TSX Venture, US OTC Tickers: $YES.V / $CTRNF Market cap: 45 MCAD at time of publication Share price: 0.64 CAD at time of publication Website: https://www.chartechnologies.com/ Comparable peers: Xebec, $XBC Market cap $642 MCAD Greenlane renewables, $GRN, Mcap $210 MCAD
Short summary:
We are initiating coverage on the Canadian cleantech company Char Technologies which is the leading cleantech and environmental services provider when it comes to converting woody materials and organic waste into renewable natural gases (RNG), hydrogen and biocarbon. They are thereby taking care of existing waste and turning this into valuable commodities. Char technologies is converting challenging organic streams into greenhouse gas neutral biocoal, second generation Renewable Natural Gas”(RNG)” and hydrogen.
Some of the company’s competitors such as Xebec & Greenlane renewables both participate in first-generation anaerobic digestion (biogas) technology , Char technologies has what is known as second generation biogas technology .
Char Technologies currently has proposals out for over $100 million in projects and consulting activities. They also have a strong balance sheet with NO Debt ,a current burnrate of 2 million CAD per year, and a market cap of only $45 million CAD!
Stock history background:
Char technologies went public in March of 2016 through a qualifying transaction with a capital pool company with an IPO price of $0,17 CAD. The stock has had tremendous success during last 12 months with an increase in share price of 436 %. We believe however that the journey has only just begun since the evaluation is still at a nano cap level of only 45 MCAD and especially considering the huge current pipeline of projects the company has coming valued at over $100 Million . The pipeline consists of about 70 % systems sales and 30 % consists of building own operating facilities.
Company structure:
Char technologies consists of the two subdivisions Altech and Chartech Solutions . Altech is an environmental consulting division that focuses on environmental solutions mainly towards industrial clients. A few of the services worth mentioning include environmental audits, ESG public reporting ,wastewater management and regulatory services.
Chartech Solutions is the division focusing on the company’s High Temperature Pyrolysis technology, and the biocarbon product from the technology called Cleanfyre which is a carbon negative emissions biocarbon that can replace regular coal in power plants. Biocarbon can also be used for agricultural improvements but this is not an area that Char technologies is pursuing at this moment. The production process also produces second generation of natural gas and hydrogen. The technology has been validated and tested for over two years and management is confident that the time is right for large scale operations. [1]
We believe that Chartech Solutions is the subdivision that will bring in most revenue for the company for a foreseeable future.
[1] SOURCE MANAGEMENT’S DISCUSSION & ANALYSIS FOR THE QUARTER ENDED: MARCH 31, 2021 Page 5
Giant Market opportunity for Cleanfyre: The product Cleanfyre (biocarbon) from Char Technologies has the massive potential to replace the fossil fuel of natural coal in power plants and transportation. The global coal market alone is worth an estimated $366 billion USD and this is something that Char Technologies is aiming at taking a big stake in. The biggest advantage of the biocarbon product is that it does not require any change in the existing infrastructure of coal power plants and this is a BIG deal since the capex cost of these facilities generally is VERY high. Secondly the biocarbon from Char technologies is carbon negative . To quote CFO Mark Korol “ one ton of coal replaced withone(1) ton of Cleanfyre reduces GHG emissions by three (3) tons.”
Many other governments around the world are following Canadas path of taxing coal consumption with the European Union being the pioneers and especially Sweden which has the highest carbon tax of the European Union with 108 Euros per metric tonne of CO2. In the United states there are currently 11 states that have implemented carbon pricing, there is currently however no government to implement it on a national scale although it’s not a far fetched thought that this soon could become a reality with the new Biden administration. There is also a possibility of selling carbon credits on the open market as revenues if a customer of Char Technologies does not need all of the credits that they are eligible for. In conclusion the worlds energy consumption of coal is under harsh pressure by legislation and Char Technologies has the chance to provide many businesses and industries with a revolutionizing product that actually will be cheaper than regular coal. It should also be mentioned that Char technologies produces both hydrogen and renewable natural gas in their pyrolysis process thanks to the high temperature. These are valuable by-products that can be sold to add extra revenues .Since the sales of biocarbon gives good revenues to Char Technologies they are able to sell the hydrogen and renewable natural gas produced at a very competitive pricing which improves the payback time of their plants considerably. The world will need 80 % of its renewable natural gas from this type of pyrolysis technology if it’s to meet the 2030 green target according to a study commissioned by Énergir. Another very positive side effect of the production process is that when processing biosolids the companys pyrolisis system destroys harmful PFAS particles in the waste/sludge from wastewater that is processed. These PFAS particles are a major concern in many countries!
Pricing model for biocarbon
The global coal market is segregated in terms of coal types and prices. Prices have plummeted due to Covid-19 and prices today vary from 40-125 $USD per tonne however this does NOT include carbon tax which differs between 30-150 USD per tonne globally. Typically industrial users will utilize a blend of different grades of coal. The biocarbon from Char Technologies has a very high energy density this means one tonne of Cleanfyre can replace 1,1 tonnes of high-grade coal which typically is priced at $100-$125 per tonnes not including carbon credits.
The actual emissions of carbondioxide (CO2) for burning coal is the following simplified equation:
1 tonne of anthracite (fossil) coal consumed = 2.9 tonnes of GHG/CO2 released
1 tonne of CleanFyre consumed = 0.27 tonnes of GHGs (CO2) released
1 tonne of CleanFyre replaces 1.1 tonnes of coal, so 1 tonne of CleanFyre can therefore reduce net GHGs by 2.9 tonnes.
The actual pricing in Canada of high-grade coal due to CO2 emissions equals $216 – $241 per tonne compared to 250 $ per tonne for Cleanfyre including carbon credits. As we previously stated the current tax credit for CO2 emissions in Canada is 40 CAD per tonnes but this is set to increase to 170 CAD by 2030. Therefore Cleanfyre from Char Technologies will become CHEAPER than regular coal already by 2022 with added ESG benefits. If you instead look at Sweden, in the European Union , Cleanfyre is actually CHEAPER today since the total price the product in Sweden equals $283 CAD per tonne including carbon tax credits. In conclusion Cleanfyre from Char Technologies is today only slightly more expensive than regular coal but is set to become cheaper and with very good ESG benefits for coal consumers and therefore already by 2022 it will not make sense for producers to use regular coal over Cleanfyre.
Business model: Char Technologies plans to both operate their own pyrolysis facilities and to sell their system for the production of the biocarbon product Cleanfyre. The company also sees opportunities for Joint Venture agreements for pyrolysis plants both domestic and abroad. There may also be revenue from recurring service and monitoring contracts and recurring biocarbon management fee. The purchase price for a customer of a facility that is capable of producing 25 000 tonnes of Cleanfyre per year ( and 500,000 GJ/yr RNG) amounts to ~30 million USD. The potential revenues for a facility of this size equals upwards of 25 Million CAD annually with good margins (50-80 %). This includes revenues from both Cleanfyre and the sale of the renewable natural gas or Hydrogen which is created in the manufacturing process of the biocarbon. The CAPEX for building a fully owned facility of 25 000 tonnes is about 30 million CAD. According to the company the payback time on the capex can be as fast as 2 years.
Char Technologies Pyrolisis device
Intellectual property protection
Char Technologies, according to CEO Andrew White, has “a very defensible intellectual property position”. They believe they have protected how to convert their feedstock into Cleanfyre, Hydrogen and renewable gas. The company also believes it would be very time consuming and costly for someone to even try to copy what they are doing.
Char technologies currently have 10 patents protecting their “recipe book” and also more patents have been filed.
Competitors According to CEO Andrew White the big differentiator for Char Technologies is that their pyrolisis system runs at 800 degrees Celsius, this is hotter than other pyrolysis plants, which allows them to create both biocarbon (cleanfyre) and also extract renewable natural gas /hydrogen.
The company has different competitors in different product segments. For renewable natural gas there are many actors active in this segment such as Xebec. However Char Technologies has the advantage of being able to price their hydrogen and renewable natural gas at very competitive pricings as it’s a biproduct of the biocarbon production.
Looking at biosolids (biochar) there is, as far as we have found, only two commercial scale competitors in the United states.[1] One of these competitors is BioforceTech. The maximum output from a plant from BioforceTech with a solid content of 95 % appears to be 7600 tonnes per year, in comparison Char Technologies plan to have an output of 25 000 tonnes per year for their upcoming facility. The largest competitor for Char Technologies for biocarbon in North America appears to be National Carbon. They claim to have the largest advanced biocarbon production facility in North America with capacity to convert hundreds of thousands of tons of biomass into patented carbon products, there is however no public information on their revenues or pricing. The market should however certainly be big enough for more than one big biochar actor.
CEO Andrew White of Char Technologies mentioned during our latest interview that they are not aware of any competitor that produces BOTH biocarbon AND renewable natural gas and we have yet to find anyone either. ESGFIRE has found two competitors mentioned above who produce biocarbon for coal plants and we have also found other potential biocarbon competitors such as bcbiocarbon and AIREX energy however these two companies do not appear to create high energy density coal and they do not appear sell their products to steel producers but instead they appear to be more focused on agriculture.
Risks Char Technologies is not yet a profitable business and as such there are a number of risks that have to be addressed. Burnrate and financing risks is one main aspect. The company raised 6 million CAD in February of 2021. The warrants attached to the financing if they all are excercised will add another ~3,7 million CAD . As of March 31st the company was sitting at a cash balance of close to 6 million CAD. The company appears to have a pretty low burn rate of about 500 000 CAD per quarter. Assuming this does not increase the company should be fully funded (not taking into account larger projects) until Q3 of 2022. We think however that the company does have plans to soon build their own 25 000 tonnes facility so they will likely will be looking to take in more capital within the next 6-12 months. Most likely the financing of the 25 000 tonnes facility will consist of a mix of debt and equity. If the company is unsuccessful in funding their expansion it could pose a serious risk for the expansion plans. This risk could however be outweighed by a potential Joint Venture partnership should the company not be able to raise all funds needed by themselves. A joint Venture project for the 25000 tonnes facility could also be a way of expanding without further dilution. There are no known issues with the scalability of the biocarbon product Cleanfyre as of today, infact the company recently announced a 1000 tonne breakthrough order from one of Canada’s largest steel producers. The breakthrough order was a result of a successful pilot production run of 20 tonnes. However, should there be any unexpected problems with the scalability of Cleanfyre then this is a risk that could severely impact the company’s revenue streams. As we have mentioned in the competitor section there is no extensive competition in the field today, putting price pressure on the biocarbon market. Should more serious competitors arise with access to better financings then this could pose a serious threat to the company’s expansion plans. However, it should be stated that there is likely room for more actors in the biocarbon business seeing as in Canada alone there is a need for close to 50 million tonnes of coal per year . One final longer term risk that should be mentioned is the possibility of steel refineries completely abandoning furnaces and switching to other types of energy sources such as hydrogen or other gasification processing.
Upcoming catalysts
There are a number of upcoming catalysts for Char Technologies. The company’s pilot plant today has a production capacity of 5 tonnes of Cleanfyre per day totalling a potential revenue of 900 000 CAD per year. Short term catalysts could be more orders for the BioCarbon product Cleanfyre and also clarification on when and how the company aims to begin construction of their planned 25 000 tonnes facility. Medium term catalysts could likely be Joint Venture partnerships for co-owned facilities and long-term catalysts are likely licensing agreements to international partners for the patented production methods as a way of expanding internationally without the need for use of own capital expenses.
Conclusion and summary
Char Technologies is, as far as ESGFIRE can tell, the only publicly listed and investable company which produces both Biocarbon, Hydrogen and Renewable Natural Gas. The company appears to have a cost competitive and scalable product which, if the business plan is executed properly, has enormous growth potential. Assuming the company is able to take a 10 % market share of its domestic market it could equal revenues of $1.25 billion CAD with margins likely ranging between 50-80 %. This could in turn lead to an EBITDA profit in the range of 500-600 million CAD. The interest for ESG investments has exploded during 2020-2021 and the company should, in our honest opinion, have little trouble in attracting more capital to finance both their own facilities and also be able to find a Joint Venture partner for co-owned facilities where they won’t be forced to put in capital expenses to the same extent. There are also very exciting opportunities in licensing out their technology to third parties on other continents around the world.
Finally, the fact that on a global scale the world will need 80 % of its renewable natural gas from either gasification or pyrolysis is a huge competitive advantage for Char Technologies as they are able to offer very competitive pricing on their RNG and hydrogen thanks to the great pricing model of their biocarbon product. We think Char Technologies has a very exciting and bright journey ahead and we look forward to keeping our readers updated on their progress.
We own shares of this company personally.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.
Companies may or may not be paying us for content posted on this blog.
Company: Vicinity Motor Corp(formerly Grande West Transportation ) Listings :TSXV , US OTC SOON to be up listed at Nasdaq Ticker: VMC.V (previously BUS ,) BUSXF at US OTC Market cap at time of publication: $202 MCAD Stock price at time of publication: $6,76 CAD ( reverse split price 2,25 CAD) Business: Leading supplier of electric, CNG, gas and clean-diesel buses for both public and commercial enterprise use in the U.S and Canada Comparable peer : Greenpower Motor , Market cap $500 MCAD Website: https://www.grandewest.com/
Danfoss Editron specializes in hybrid and electric drivetrain systems for the marine, off-highway and on-highway markets. A business division of Danfoss, it develops and manufactures high-performance power systems for heavy-duty vehicles, machines, and marine vessels based on its unique synchronous reluctance assisted permanent magnet and inverter propulsion system technology.
The systems feature a Buy America Compliant 220kW motor with an Eaton multi-speed transmission. They are also fitted with a digital AVIONICS controller and inverter to enable the intelligent management of all the vehicle’s operations. Weighing only 85kg, Danfoss Editron’s drivetrain systems are significantly lighter in weight than other electric drivetrains on the market, which can weigh as much as 500kg. Manufactured in Danfoss Editron’s Colorado plant, these Buy America Compliant motors are a key part of the Vicinity Lightning™ product that will be assembled in the new VMC Washington State manufacturing facility.
William Trainer, Founder and CEO of Vicinity Motor Corp said, “The EDITRON drivetrain and the expert team at Danfoss Editron are an ideal partner for us as we continue to expand the breadth of our EV product suite. We have issued a purchase order for 300 of the company’s drivetrain systems to guaranty supply for our customers through 2022. We look forward to continue working with the team at Danfoss Editron to build a globally competitive, cost effective vehicle for our customers.”
Cliff Stokes Jr., Senior Sales Manager at Danfoss Editron, added, “Our commercial bus drivetrain has over 10 million miles on the road and is in use by commercial vehicle OEMs in North America, South America, Europe, China and India. It has been specifically developed to deliver high levels of torque efficiently at a wide range of rotational speeds, helping to maximize vehicle efficiency. We’re thrilled to add Vicinity Motor Corp and its promising electric bus program as another key customer in North America.”
ESG comment:
Vicinity Motors once again show they are leading the EV industry when it comes to new technology. They’ve previously announced a partnership with EXRO for Enhanced Powertrain System into Next-Generation Electric Bus Fleets and now as mentioned above, they’ve announce a partnership with Danfoss. Danfoss Editron specializes in hybrid and electric powertrain systems for the marine, off-highway and on-highway markets. The Buy America compliant motor from Danfoss should fit well into Vicinity’s plans to becoming the leading EV supplier in North America.
We own shares of this company personally.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.
Companies may or may not be paying us for content posted on this blog.
Ticker: CMC.CN / CWSFF Listings: Canadian Securities Exchange / US OTC / Frankfurt – Soon to uplist to TSX venture exchange Website:https://www.cielows.com/ Market Cap: 287 MCAD at time of publication Share price: 0,74 CAD at time of publication Industry: Converting waste to renewable fuel
Official news release statement: “Cielo Waste Solutions is pleased to announce that it has received conditional approval to list its common shares on the TSX Venture Exchange (“TSXV”), subject to fulfilment of certain conditions. The Company will make a further announcement once the TSXV has issued a bulletin confirming the date on which trading on the TSXV will commence. The Company will also apply to have its common shares voluntarily delisted from the Canadian Securities Exchange (“CSE”) immediately before trading begins on the TSXV. Once listed on the TSXV, the Company will continue to trade under its existing symbol “CMC” and shareholders will not be required to take any action related to the listing. The Company’s shares will also continue to be listed on the OTCQB under the symbol “CWSFF”. Cielo anticipates the listing to be completed shortly.”
Don Allan, CEO of Cielo Waste Solutions, commented: “We are excited to begin trading on the TSXV, a globally recognized exchange. The move to the TSXV will increase Cielo’s presence and provide easier access and trading to investors globally. We would like to thank the CSE for their continued support over the years and look forward to our new relationship with all those involved with the TSXV.”
ESG Comment: Finally Cielo Waste Solutions has received the long anticipated confirmation that it’s uplisting to the TSX venture is imminent. We have noted that the company already has a few institutional owners listed below. These numbers are not confirmed but come from relatively reliable sources and therefore we have chosen to disclose them accordingly. The uplisting to the TSX venture will enable for many more institutions to purchase shares in the company and it’s also an important springboard to getting an uplisting to the NASDAQ further down the line . However uplisting to NASDAQ has not been communicated by the company yet so this is only a speculation from our side of what could be possible further down the line.
Current institutional ownership in Cielo Waste Solutions as follows below:
Palos – WP Growth Fund: 2,625,000 Shares HSBC – Small Cap Growth Fund: 641,870 Shares HSBC – Canadian Small Cap Equity Pooled Fund 214,529 Shares U.S. Global Investors – Global Resources Fund: 200,000 Shares
We own shares of this company personally.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.
Companies may or may not be paying us for content posted on this blog.
