Company: Vicinity Motor Corp(formerly Grande West Transportation ) Listings :TSXV , NASDAQ Ticker: VMC.V & VEV Market cap at time of publication: $153 MCAD Stock price at time of publication: $ CAD Price target: 15 CAD by Catalyst research 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 : Lion Electric Market cap $2682 MCAD Website: https://vicinitymotorcorp.com/
VANCOUVER, BC – November 30, 2021 – Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) (FRA:6LGA) (“Vicinity” or the “Company”), a North American supplier of commercial electric vehicles, today announced that management will participate in the Sequire Clean Tech & EV Conference on December 6, 2021, and the SNN Network Canada Virtual Event taking place December 7-9, 2021.
Chief Executive Officer William Trainer will participate in virtual one-on-one meetings throughout the day at the SNN Network Canada Virtual Event and is scheduled to present at each conference as follows:
Sequire Clean Tech & EV Conference
Date: Monday, December 6th, 2021
Time: 10:00 a.m. Eastern Time (7:00 a.m. Pacific Time)
A live audio webcast and archive of each conference presentation will be available using the links above. For more information on how to register, or to schedule a meeting, please visit the conference websites above or contact your event representative.
Legal Disclaimer
We DO NOT own shares of this company 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.
ESGFIRE reasons for subscribing for shares in the IPO of Chargepanel:
We have chosen to subscribe for a large position in the ongoing Initial public Offering (IPO) of the company Chargepanel. Chargepanel is a Software as a Service company (SaaS) operational in software as a service, fleet management and electric vehicles. We think this is a fantastic business combination which we think is perfectly positioned for massive growth. Seeing as 71 % of the IPO offering has already been signed for by subscription commitment there is most likely not many shares available for the public. Below we will give a brief background of the company, business models, growth plans, financial projections, risk scenarios and finally subscription / trading information.
Backgroundand IPO details
Chargepanel is a Swedish company that provides Saas (software as a service) for electric vehicle charging. In summary ChargePanel simplifies EV charging and EV fleet management for both EV users, chargestation owners and corporations that own/offer charging stations for their clients/employees. The company is currently operating in Sweden, Norway and the United Kingdom and has a growth plan which aims to establish a presence for the company in all parts of the world before 2025, not a modest ambition! The business concept is to offer white label solutions to companies who want to be a part of the growing EV charging infrastructure market for electric vehicles. The company aims to grow globally with their existing partners . The global electric charging station market is expected to reach $20.49 billion in market value by 2025 at a compounded annual growth rate of 31.8%. The number of charging stations worldwide is meanwhile projected to grow with a compounded annual growth rate of 92 % until 2025.
The internal corporate goals for Chargepanel is to reach a turnover of 17,55 MUSD or 160 MSEK by 2024. The research firm Analyst Group projects that the company will have reached 5 new markets by 2024 and grow with a compounded annual growth rate of 49 % between 2020-2024.
The management of the company estimates that the company would be profitable even without the capital from the ongoing IPO however capital is needed for the company’s growth plan which is why the IPO is being done.
The money from the IPO is aimed to be used as follows:
45 % hiring of new staff for expansion and sales 30 % marketing of the SaaS platform in chosen markets 15 % operating expenses 10 % financial buffer
Product concept
Chargepanel uses an Open Charge Point Protocol (OCPP), which means their software service can be integrated with different types of hardware (charging stations) from different suppliers. This can be controlled from the same backend system. OCPP used by Chargepanel is the standard communication between backend and charging stations and is currently implemented in 78 countries worldwide. Chargepanel’s platform is also connected to a global E-roamingnetwork. The E-roamingnetwork can be described as the equivalent of the internet roaming feature within the European Union where different operators open their grid for each other’s customers. For the end customer this is a huge advantage since they therefore can connect to any charging station without the need for different applications and/or RFID tags. Using E-roaming the end client only needs ONE account at ONE operator to use the entire network. Chargepanels has partnered with Hubject which runs the biggest global E-roamingnetwork with more than 250 000 charging stations connected in 43 countries. For the end client it can be mentioned that Chargepanel has three different applications, “Enterprise” which is the complete white label system for EV charging networks, “Cloud” which is the owner system for charging operators and “Connect” which is the mobile application for EV users. In summary, chargepanel simplifies EV charging and EV fleet management for both EV users, chargestation owners and corporations that own/offer charging stations for their clients/employees. For a Complete detailed feature of the service offering check out Chargepanels website which is very informative and available both in English and Swedish. Direct link is available HERE.
Business model and revenue streams
Chargepanel has developed a well diversified revenue stream of three different types of subscription services. The subscription services are based on the different segments where their Business to business clients (B2B) are operating. These subscription models are as follows:
1. Business to business clients using the chargepanel platform in the form of a starting fee and a monthly subscription fee. 2. A revenue fee for every charging socket that the client connects to Chargepanel. 3. Other revenues such as optional value adding services in the form of Fleet management and shares of different transaction fees.
The majority of revenues today are one off revenues connected to installing the platform. It is most likely, just as Analyst group predicts, that the recurring subscription revenues will be the majority of revenues down the line.
The Base scenario financial projections from the research firm Analyst group are shown below in SEK. We note that Analyst Group for some reason are extremely conservative in their projections as they differ very much from the company’s own projections. For example the company projects revenues of 17,55 MUSD or 160 MSEK by 2024 and Analyst group only projects 4,5 MUSD or 40,8 MSEK by 2024 which is a staggering 75 % lower than the company’s own projection. Even by using these extremely conservative numbers the research firm Analyst group has a bull case scenario target price which is almost 100 % above the IPO priceof Chargepanel.
Risks to consider The biggest risk, according to Analyst Group, is an extended global shortage of semiconductors which can affect the purchasing power of their clients and in turn the initial growth rate of Chargepanel significantly. A lower growth rate than anticipated of the electric vehicles sector could also cause a delay in revenues for Chargepanel. Other risks that ESGFIRE notes is the dependence of key personnel, and the possibility of more rapidly growing competitors.
Trading and where to sign up Chargepanel is aiming to commence trading on the Swedish Nasdaq First North on december 9th of 2021. You can sign up for shares either through online brokers Avanza, Nordnet or using BankID. The minimum investment is 585 USD or 5310 SEK. The final date for share subscription is 30th of november 2021.
Legal Disclaimer
We may on the date of the IPO own shares of this company 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 advice 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.
This will be a quite different post than what we usually provide to you as a subscriber. We have noticed alot of downward movements for no obvious reason in many of our ESG positions and also other companies on our watch list . There may be several reasons for this trend occuring which we want to clarify.
First of all the same phenomenon often occurs globally this time of year in the form of tax season selling which means investors sell off positions with a loss in order to deduct it on their tax audit. Secondly the markets have been spooked by rising COVID cases around the globe. Last but not least it should not be underestimated what the current (hopefully) high inflation rates are doing to the markets. When there is a spike in inflation central banks may feel urged to start increasing their interest rates at a higher pace than they otherwise would have.
What is a dangerous balancing act right now for the Central banks is that the debt ratio for households in Canada , USA and Sweden to name a few are at historical highs. There is a big risk that any sudden massive raise in interest rates could cause a flash crash in housing prices which almost certainly also would affect the stock market.
ESG and cleantech is a global macro trend that will need to have a continuted growth most likely for the next 30 years if humanity is going to have a world that is sustainable for human life as we know it. Therefore we are not worried long term what any short term turbulence may cause although one should be aware of evaluation bubbles in the ESG sector such as the case with Rivian. What should be kept in mind as an investor is as always to keep your portfolio diversified (meaning minimum 10-15 positions) and never to invest money you cannot afford to lose. Remember Time in the market usually beats timing the market.
P.s This cannot be stressed enough, do NOT use leverage unless you are absolutely sure about what you are doing!
Legal Disclaimer
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.
Ticker: CMC.V / CWSFF Listings: TSX Venture Exchange / US OTC / Frankfurt Website:https://www.cielows.com/ Market Cap: 186 MCAD at time of publication Share price: 0.285 CAD at time of publication Industry: Converting waste to renewable fuel
VANCOUVER, BC / ACCESSWIRE / November 23, 2021 / Cielo Waste Solutions Corp. (TSXV:CMC; OTCQB:CWSFF) (“Cielo” or the “Company”) is pleased to provide an update in relation to its agreement with 18887711 Alberta Inc. (“1888”).
Cielo holds an exclusive global license through the Agreement (as defined below) with 1888, to complete the development and commercialization of the Technology (as defined below). The Technology, which is patented in Canada and the United States, can utilize waste to produce fuel through a catalytic thermal depolymerization process. Cielo is currently using the Technology at its demonstration facility located in Aldersyde, Alberta, to produce fuel from wood waste and intends to construct both a research and development facility and a full-scale facility at its Fort Saskatchewan, Alberta, property.
Cielo and 1888 have executed a preliminary agreement pursuant to which Cielo and 1888 have agreed that:
All rights of 1888 to utilize the Technology and receive payment of Royalty and Refinery Fees (as defined below) are terminated. In consideration for terminating the Agreement and transferring the patents and all related intellectual property to Cielo, Cielo will issue ten million (10,000,000) common shares in the capital of Cielo (the “Shares”) to 1888 on the closing date.
The closing date shall be December 3, 2021 or such other date agreed upon by Cielo and 1888.
The preliminary agreement and issuance of the Shares are subject to the approval of the TSX Venture Exchange.
History
1888 and Cielo entered into a license agreement dated June 14, 2016 which was subsequently restated and amended through a binding agreement dated November 1, 2017 (the “Agreement”). Pursuant to the Agreement:
1888 and Cielo agreed to the payment of Royalty and Refinery Fees by Cielo to 1888 in exchange for 1888 providing resources for the development of technology to convert and transform waste to fuel (the “Technology”);
1888 provided and Cielo accessed capital for the development of the Technology owned by Cielo;
Cielo provided a license to 1888 to develop the Technology, which included the consent from Cielo for 1888 to develop, improve, and patent the Technology, and 1888 obtained patents concerning the Technology;
Cielo had the right to develop and improve the Technology and did continue and will continue to develop the Technology to commercialization and beyond;
Upon commercialization of the Technology, Cielo was to pay 1888 a royalty of CAD $0.05 on every liter of fuel produced by Cielo (the “Royalty”) as well as an additional sum for each refinery beyond the initial refinery constructed by Cielo (the “Refinery Fees”); and
Certain rights for the termination of the Royalty and Refinery Fees were provided to Cielo.
Cielo, in accordance with its current business strategy, identified that the patents held by 1888 concerning the Technology and the terms of the Agreement were an impediment to attracting certain institutional investors. Cielo desired to eliminate any uncertainty as to its rights to the Technology and to obtain the improved earnings potential from the termination of all obligations concerning the Royalty and Refinery Fees. As such, Cielo requested to negotiate with 1888 on: i) terms for the termination of the Agreement, ii) assignment of the patents registered by 1888 to Cielo, and iii) assignment of all rights that 1888 might have to any technology or other intellectual property developed by 1888 to Cielo.
Negotiation Process
Negotiations on behalf of Cielo were managed by independent members of the Cielo executive team and the terms of the preliminary agreement were approved by Cielo’s Board of Directors. While the Agreement ceased to be a related party agreement upon Mr. Allan’s resignation as a director and officer of 1888 on November 10, 2021, Mr. Allan did not participate in negotiations and abstained from voting on the matter when considered by Cielo’s Board of Directors as Mr. Allan continues to be a minority shareholder of 1888.
Anticipated Benefits to Cielo Stakeholders
Cielo anticipates that its stakeholders will benefit from the termination of the Agreement in that it represents a simplified structure, elimination of any uncertainty as to Cielo’s right to the Technology, and the improved earnings potential from the termination of all obligations concerning the Royalty and Refinery Fees that would otherwise be payable by Cielo to 1888. The issuance of the Shares to 1888 does not impact Cielo’s capital which it is employing to achieve the milestones set out in the November 12, 2021 press release, including Cielo’s progress towards commercialization.
Cielo remains committed to providing updates to shareholders on a timely basis as the Company continues to meet its milestones, and as new key objectives are established.
Legal Disclaimer
We DO NOT own shares of this company 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: Hydrogenpro Ticker: HYPRO Listings: Norway Industry: Green Hydrogen and electrolyzer Share price: 20.4 NOK at time of publication Market cap: 1092 MNOK Comparable peers: Green hydrogen systems, Next hydrogen, Aker Clean hydrogen
ESGFIRE comments: Hydrogenpro is firing on all cylinders in order to deliver their goal of targeting hydrogen production costs of $1,20/ kg in 2022 with their core high-pressure alkaline electrolyzer product. Sales for the third quarter were 8.2 million NOK , in line with most expectations. The presentation speaks of a prospect sales pipeline between 6,9 GW to 8.2 GW. The report also states the number of active projects for the sales pipeline have gone from 55 to 66 vs end of Q2. 2021. The electrolyzer market is expected to have a CAGR growth of 121 % until 2030 according to the company report. The company reported a net loss of -11.4 MNOK for the quarter and sits on a healthy cash balance of 443,4 MNOK at the end of Q3 2021. Most financial expectations for Hydrogenpro is that the company will be profitable by 2023 with revenues of 659 MNOK and net profit of 45 MNOK . Press release in full below.
HydrogenPro AS (OSE: HYPRO) today published its third quarter 2021 report. The company significantly increased its sales pipeline, reported a key purchase order and advanced its global fabrication strategy, gaining control of key technology and IP and setting up a production facility in Tianjin, China.
“The recently announced investment in a 75 percent-owned technology and production facility in China is a major milestone. It means we have full control over IP and core technology and that we will be ready for volume production of our highly efficient large-scale electrolysers in the second quarter of 2022. Meanwhile, we’re actively pursuing several major business opportunities, as illustrated by an active sales pipeline, which has increased by almost 70 percent in half a year,” said Elling Nygaard, CEO of HydrogenPro.
Financial highlights for the quarter (Q2 2021 in brackets): o Revenues of NOK 8.2 million (0.1 million) o Net profit of negative NOK 11.4 million (negative 13.1 million) o Cash position of NOK 443.4 million (471.2 million)
In August, Mitsubishi purchased the world’s largest single-stack high-pressure alkaline electrolyser system, to be installed at Herøya Industrial Park in Norway. HydrogenPro is also working with Mitsubishi on a second development site.
A number of other key contract opportunities are moving closer to final investment decision and contract award. HydrogenPro now has an active pipeline of 8.2GW, compared to 6.9 GW at the end of the second quarter. The average size per project is 124MW.
“The significant price increase of CO2 quotas has made clear the need to decarbonize the global hydrogen production. Also, increased energy prices means a growing advantage for efficient electrolysers, and our electrolysers are substantially more efficient that current technology. In order to reach IEA’s 2050 Net Zero Emission Scenario, global electrolyser capacity must expand rapidly in the near future, and our technology fits the bill perfectly,” said Mr. Nygaard.
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 advice 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: Hydrogenpro Ticker: HYPRO Listings: Norway Industry: Green Hydrogen and electrolyzer Share price: 21 NOK at time of publication Market cap: 1176 MNOK Comparable peers: Green hydrogen systems, Next hydrogen, Aker Clean hydrogen
ESGFIRE comment: Hydrogenpro is taking further steps to rollout their electrolyser production globally. This is an important step for the company and we look foward to closely following the development. An estimate from us is that the revenues from selling equipment to projects from this factory will at full capacity land at about 180 million USD and about 50 % of that would be fair to count from electrolyser sales originating from this specific factory.
17 November 2021: HydrogenPro AS (OSE: HYPRO) has reached an agreement with Tianjin HQY Hydrogen Machinery Co., Ltd. (“THM”) to create a joint venture, which will allow HydrogenPro to utilize THM’s electrolyser technology globally.
The first step of the joint venture is to set up a 300MW annual electrolyser production capacity in Tianjin, China, thereby completing the first major step of HydrogenPro’s global technology and fabrication plan. THM will transfer employees, fixed assets and intellectual property to the joint venture, which will be 75 percent owned by HydrogenPro and 25 percent by the current owners of THM. “
This transaction gives HydrogenPro full control over IP and core electrolyser technology that is key to our global fabrication plan. The joint venture will be very cost-effective and serve clients all over the world until our global fabrication set-up is completed, complying with all regulatory standards in the relevant locations. The next steps will be to establish footprints outside of China, based on technology and experience from the joint venture, to maintain cost leadership and to ensure high local activity in our end-markets,” says Elling Nygaard, CEO of HydrogenPro.
THM has a long-standing history of producing electrolyser components, parts and systems as a supplier to the electrolyser industry in China and has over the past years expanded into assembly and sales of complete electrolysers. HydrogenPro’s total investment cost is approximately NOK 48 million, whereof approximately NOK 8 million has been pre-paid and the remaining capital injection is approximately NOK 40 million (1 RMB = 1.35 NOK).
The board of the joint venture will consist of five representatives, with a majority appointed by HydrogenPro. HydrogenPro board member Jarle Dragvik will be chair of the joint venture board. The production facility will be located in Tianjin and will be equipped with new machines, which have already been purchased. It is expected to be ready for pilot production by the end of 2021.
When fully operational, the facility will have an annual electrolyser production capacity of 300MW, with substantial room for further expansion. “We are very happy that THM’s technology and the hard work we have put into developing it will now be utilized in the new joint venture. We look forward to working with HydrogenPro to reach a global market and further develop the most efficient and competitive electrolyser technology,” says Wang Zhou, CEO of THM. HydrogenPro will leverage its new, improved and cost-leading electrolyser technology for large industrial hydrogen installations, reducing power consumption by 14 percent, thus giving a significant cost advantage compared to other technologies. “
THM’s unique intellectual property and experience in the manufacturing of cost-competitive high-pressure alkaline electrolysers, makes them an ideal partner for HydrogenPro. When combined with our next-generation electrode technology from Denmark, we are able to significantly improve electrolyser efficiency, enabling hydrogen to be produced at the absolute lowest cost in the market for the time being. We regard this moderate investment in state-of-the-art production capacity to be in line with our asset light approach to developing a global supply chain,” Nygaard concludes.
Legal Disclaimer
The stock price development above was calculated by taking the opening price at the first day of October and the closing price at the last day of October.
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 advice 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: Lion E-mobility Listings :German exchange Xetra and Frankfurt Ticker: $LMIA and $LMI Market cap at time of publication: 28 million Euro Stock price at time of publication: $3 Euro Business: Supplier of electrical energy storage and lithium-ion battery system technology Website: https://lionsmart.com/en/company-news/
ESGFIRE comment: We made an incorrect assessment recently where we sold our shares in Lion E-mobility at 2.5-2.75 Euros. We have today repurchased our shares at an average price of 3,82 Euros since the company revealed today that they have received a huge order from one of their Canadian clients worth close to 50 milion Euro for 2022. this is almost twice the market cap of the company before this news. Our incorrect assessment was that the company would be losing their canadian customers since Vicinity Motors had chosen a second supplier of batteries but as today’s order showed we were wrong in this assumption. Therefore Lion e-mobiity re-enters the ESGFIRE portfolio as of today 17/11 2021.Press release in full below.
Baar (CH), November 17, 2021 – LION Smart GmbH, a wholly owned subsidiary of LION E-Mobility AG and developer of electrical energy storage and lithium-ion battery system technology, has secured a major order for the supply of battery packs from one of its larger Canadian customers.
The sales volume of this order was agreed for 2022 and amounts to around €48.4 million. By winning this major order, LION Smart continues to successfully drive its battery pack integration business forward, confirming its ambitious growth targets for the coming years.
Winfried Buss, Managing Director of LION Smart GmbH, said: “Winning this major order confirms that we have chosen the right strategy around our important business of supplying battery packs. We are proud to set a new milestone for 2022 with this major increase compared to the previous year in sales and look forward to further successful cooperation with our customer in the future.”
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 advice or recommendations of any kind to either buy or sell any stocks.
New Strategic Partnerships with Optimal-EV and EAVX Build Foundation for Breakthrough FY2022, with Projected Revenues of at Least $140 Million
Company: Vicinity Motor Corp(formerly Grande West Transportation ) Listings :TSXV , NASDAQ Ticker: VMC.V & VEV Market cap at time of publication: $179 MCAD Stock price at time of publication: $5.20 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 : Lion Electric Market cap $2400 MCAD Website: https://vicinitymotorcorp.com/ ESGFIRE comment: We are pleased to see that the Year over year 9 month growth was 128 % ( 49,3 MCAD in 2021 compared to $21.6 million in 2020) . Although the quarterly sales dropped with 67% to $2.9 million for the three months ended September 30, 2021, as compared to $8.9 million in the three months ended September 30, 2020. This drop is not a big concern since the company has positioned themselves for massive growth in 2022 and they even seem confident that they may be able to exceed their own projections of 140 million CAD in sales for 2022!
VANCOUVER, BC,November 12, 2021 – Vicinity Motor Corp. (TSXV:VMC) (NASDAQ: VEV) (FRA:6LG)(“Vicinity Motor” or the “Company”), a North American supplier of commercial electric vehicles, today reported its financial and operational results for the third quarter of 2021.
Third Quarter 2021 and Subsequent Operational Highlights
Management Commentary
“The third quarter of 2021 was instrumental in our foundation building for 2022, having secured exciting new lines of business – namely EV chassis sales alongside EAVX and low-floor electric shuttle bus sales through our new partner Optimal-EV,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “While revenues from our transit bus business are at times irregular and see some periods of lower deliveries as illustrated this quarter, per the financial guidance we’ve released, we are on a trajectory to realize over $140 million in revenue next year – marking what will be a record-breaking year for Vicinity by any measure. Our entry into the high demand electric truck and electric shuttle bus market is expected to fill in the gaps for periods of lower transit bus deliveries in the future.
“We made significant moves towards fortifying our balance sheet in recent months as well to support some of these exciting new growth initiatives, supplementing our $20 million line of credit with a $10.3 million debt financing and the proceeds from a US$17 million underwritten public offering.
“Our near-term sales momentum is beginning to accelerate and given the inherent delay between a customer placing a purchase order today and the revenue realized from vehicle deliveries months later, I firmly believe that we are lining ourselves up for a strong 2022. This creates the potential to notably exceed our financial guidance – helping to generate sustainable, long-term value for our shareholders,” concluded Trainer.
Third Quarter 2021 Financial Results
Revenue decreased 67% to $2.9 million for the three months ended September 30, 2021, as compared to $8.9 million in the three months ended September 30, 2020. The decreased revenue was primarily driven by the delivery of six buses in the quarter, as compared to 20 buses in the third quarter of 2020 – reflecting low order intake during the first nine months of the pandemic and delivery delays related to shipping delays and the global supply chain challenges for certain parts currently experienced in the industry. Revenue grew 128% to $49.3 million for the nine months ended September 30, 2021, as compared to $21.6 million in the nine months ended September 30, 2020. The Company delivered 119 buses for the nine months ended September 30, 2021, as compared to 49 buses for the nine months ended September 30, 2020.
Gross loss totaled $(0.7) million, or (24.9%) of revenue, in the third quarter of 2021, as compared to a gross profit of $0.6 million, or 6.3% of revenue, in the same year-ago quarter. Gross profit increased to $5.7 million, or 11.6% of revenue for the nine months ended September 30, 2021, as compared to gross profit of $1.2 million, or 5.3% of revenue for the nine months ended September 30, 2020. The margins for the three months ended September 30, 2021, were negatively affected by sales of higher than average cost buses in inventory and the sales of fewer buses compared to the prior year period. The gross profit in the nine months ended September 30, 2021, was positively affected by sales mix with 2021 deliveries generally having higher margins than those realized in 2020.
Net loss for the third quarter of 2021 was $4.8 million, or ($0.16) per share, as compared to a net loss of $1.3 million, or ($0.05) per share, in the same year-ago quarter. Net loss for the nine months ended September 30, 2021, was $3.1 million, as compared to a net loss of $3.8 million for the nine months ended September 30, 2020.
Adjusted EBITDA loss for the third quarter of 2021 was $3.5 million, as compared to an adjusted EBITDA loss of $0.7 million in the same year-ago quarter. Adjusted EBITDA loss for the nine months ended September 30, 2021 was $0.5 million, as compared to an adjusted EBITDA loss of $2.4 million for the nine months ended September 30, 2020.
Cash and cash equivalents as of September 30, 2021 totaled $5.0 million, further fortified through the addition of $10.3 million in debt financing and the proceeds from a US$17 million public offering subsequent to quarter end. Working capital as at September 30, 2021, totaled $16.4 million, as compared to $16.7 million as of December 31, 2020.
Please dial in at least 10 minutes before the start of the call to ensure timely participation.
A playback of the call will be available through Sunday, December 12, 2021. To listen, call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally. Please use the replay pin number 10161722. A webcast will also be available by clicking here: Vicinity Q3 2021 Webcast.
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 advice or recommendations of any kind to either buy or sell any stocks.
Ticker: CMC.V / CWSFF Listings: TSX Venture Exchange / US OTC / Frankfurt Website:https://www.cielows.com/ Market Cap: 219 MCAD at time of publication Share price: 0.335 CAD at time of publication Industry: Converting waste to renewable fuel
VANCOUVER, BC / ACCESSWIRE / November 12, 2021 / Cielo Waste Solutions Corp. (TSXV:CMC; OTCQB:CWSFF) (“Cielo” or the “Company”) is pleased to provide an operational update and production forecast including project timelines, corporate goals and objectives associated with its operating demonstration facility at Aldersyde, Alberta, (the “Aldersyde Facility”) as well as Cielo’s planned research and development facility at Fort Saskatchewan, Alberta (the “R&D Facility”).
The Company’s business strategy is focused on converting waste to fuel through proprietary technology centred on a thermal catalytic depolymerization process. Today’s update builds upon the Company’s press release dated September 27, 2021, in which Cielo confirmed that engineering design enhancements and system modifications were underway at the Aldersyde Facility, in order to resolve the System Issues (defined below) and achieve steady-state production. Within that same press release, the Company announced its plans for the development of the R&D Facility.
Aldersyde Demonstration Facility Overview
The objectives of the Aldersyde Facility are focused on demonstrating the steady-state production of distillate for the sale of diesel and naphtha derived from wood waste utilizing used motor oil (“UMO”) as the carrier fluid. The facility will also serve the purposes of generating revenue, product yield and control systems optimization, operations training, maintenance planning, and establishing best practices. Operational experience and philosophy from the Aldersyde Facility will translate to larger full-scale facilities.
Improving the Aldersyde Facility
Cielo is focused on increasing production rates at the Aldersyde Facility to a commercial level that supports revenue generation. Earlier this year, the Company implemented various process modifications which resulted in an improvement in production performance and enabled Cielo to achieve continuous production. However, these process modifications created unintended system bottlenecks and plugging issues which resulted in decreased operational run times (the “System Issues”). Immediate efforts to rectify the System Issues proved unsuccessful. In August 2021, Cielo commenced a comprehensive analysis of the Aldersyde Facility by utilizing an internal engineering team, with the support of third-party engineering consultants and technical experts.
Utilizing the findings from this comprehensive analysis, the engineering design work at the Aldersyde Facility has continued since August 2021, with the focus on reducing downtime to achieve steady-state production. Engineering modification and design are being undertaken on three elements of the existing process: (i) the process infeed mixing system, (ii) reactor modifications and improvements, and (iii) the biomass waste system management (together, the “Aldersyde Project”). The Company is pleased to announce that it is on schedule to execute the following planned work for the Aldersyde Project:
Engineering design – commenced – August 2021
Initiation of equipment procurement – to commence – December 2021
Construction initiation – to commence – January 2022
Commissioning and start-up – forecast – April 2022
Benefits of Aldersyde Facility Improvements
By completing the planned work for the Aldersyde Project, Cielo anticipates realizing the following benefits at the Aldersyde Facility:
Improved Reliability – system constraints, process plugging issues and system deficiencies will be addressed.
Steady-State Production – once current design modifications are implemented, commissioned and optimized, the Aldersyde Facility’s maximum throughput level can be established, enabling Cielo to better assess the economics associated with anticipated increases in production rates.
Potential Production Increases – as steady-state production is stabilized, Cielo can explore production improvements related to limitations of the Aldersyde Facility’s physical area and any equipment upgrade requirements needed to support investing in an expansion of the Aldersyde Facility.
Revenue Generation – as the Aldersyde Facility achieves steady-state production, Cielo will be able to produce both high sulphur content diesel and low sulphur content diesel from distillate and be in a position to generate revenue and report on product sales, volumes and revenue, along with clarity on operating costs plus revenue per litre.
Historical and Forecasted Production
Based upon the historic production level realized at the Aldersyde Facility and the expected outcomes from the Aldersyde Project, Cielo is in a position to predict the cumulative volumes of distillate production at the Aldersyde Facility during 2022 and 2023 with base, mid-case, and high-case scenarios.
The graph below illustrates the historical distillate production that Cielo produced into its storage tanks over the period from Q4 2020 to the date of this press release. The graph also illustrates the forecasted range of cumulative distillate production for 2022 and 2023 calendar years.
2020 and 2021 Actual and Forecast – The 2020 production was realized while operating the facility in a batch mode. Modifications to the Aldersyde Facility were made in early Q1 2021 where continuous production was attained but not sustained due to operational bottlenecks and plugging issues. Currently the facility continues to operate at a reduced rate as the Company addresses the System Issues.
2022 Forecast – The Q1 2021 production forecast reflects the Aldersyde Facility downtime associated with the construction activities for the Aldersyde Project. Upon completion and successful commissioning of the Aldersyde Project, a range of forecasted cumulative distillate production volumes are presented for the balance of 2022 as the Aldersyde Facility is anticipated to perform in a steady-state mode with significantly reduced downtime.
2023 Forecast – The 2023 full year forecast reflects a range of cumulative distillate production with increased volumes compared to 2022, as a result of the anticipated continuous operational and systems improvements.
Further Aldersyde Facility Enhancements
Following completion of the Aldersyde Project, Cielo will undertake a third phase of enhancements at the Aldersyde Facility, targeting upgrades to existing instrumentation, measurement and process system controls that are needed to improve production run time, reduce operating costs and optimize process management.
Cielo also anticipates completing engineering feasibility reviews for the following:
Design of a distillate fractionation system to improve the quality and value of the diesel and naphtha produced at the Aldersyde Facility and enable the production of kerosene in commercial volumes.
Design of UMO pre-treating and pre-conditioning to drive a more consistent carrier fluid for utilization in the conversion of wood waste into distillate, as well as potentially generating an additional revenue stream by flashing off the light ends of the UMO which could be captured as diesel.
Following commissioning and start-up of the Aldersyde Facility, the Company’s strategy is to generate revenue streams that can assist in funding future projects and apply the operational experience and philosophy from the Aldersyde Facility to larger full-scale facilities.
Fort Saskatchewan R&D Facility Overview
Cielo previously announced the purchase of a 60-acre land and an approximately 32,000 square feet industrial building at Fort Saskatchewan, Alberta (the “Site”). Cielo intends to build a R&D Facility with a capacity of 60 litres per hour (“lph”) at the Site, which will guide the planning and design for its full-scale waste-to-fuel facility to be located at Fort Saskatchewan, Alberta (the “Full-Scale Facility”). The R&D Facility will consist of a scaled-down version of a full-scale facility, equipped with the latest process control technology for data trending, system automation, remote monitoring and process analytics. The objectives of the R&D Facility will be to determine optimal reactor design for various biomass inputs and catalyst combinations in order to maximize distillate production, improve carbon intensity score, and determine the best operational practices (collectively, the “Data”). Given the size of the Aldersyde Facility, the Data cannot be obtained in a cost-efficient manner from the Aldersyde Facility.
Cielo previously estimated a full-scale facility would have a capacity of approximately 4,000-lph; however, the Company intends to assess the economics of establishing an even larger full-scale facility given the significant footprint offered by the Site. Since the R&D Facility has a smaller 60-lph capacity, it will be fabricated and constructed within the warehouse, while the Full-Scale Facility will be constructed on the currently vacant land.
Engineering output data from the R&D Facility will provide critical information to fully understand material balance, energy balance, thermodynamics and fluid mechanics for the system which is required for modelling and scale-up calculations. These calculations would then be provided to a qualified Engineering, Procurement and Construction (“EPC”) firm capable of fabricating a full-scale, state-of-the-art, commercial waste-to-fuel facility.
R&D Facility Activities and Milestones
Current work at the Company’s Fort Saskatchewan location is focused on the design, procurement and construction of the R&D Facility. The primary objective is to produce high quality engineering data for the front-end engineering design of a full-scale waste-to-fuel facility. Thereafter, the R&D Facility will undertake continuous testing of plastics, organics, railway ties, and other waste products. In 2021 the Company has made progress on meeting milestones related to construction and commissioning of the R&D Facility as follows:
Engineering design and document approval – commenced – August 2021
Detailed engineering – expected completion – November 2021
Equipment procurement – expected completion – November 2021
Construction – to commence – November 2021
Vessel and equipment fabrication – to commence – January 2022
Structural fabrication – to commence – February 2022
Commissioning and start-up – forecast – August 2022
Pilot testing and control experimentation start-up – forecast – August 2022
Expected Outcomes from the R&D Facility Testing
Immediately following commissioning of the R&D Facility, the system will be put into operation and Cielo intends to realize the following outcomes:
Testing and data collection of using wood waste as the biomass infeed will commence following the engineering testing conditions and parameters;
Obtaining a full energy balance and material balance for the conversion of wood waste to fuel;
Identification of optimum reactor design, reactor configuration, catalyst combination, product loading and operational philosophy for wood waste;
Inputting of all testing results and experiment data for process simulation modelling, calibration and tuning that is required for system scale up calculations to predict optimum process system flow and product quality; and
Data provided to the EPC firm will enable preparation of cost estimates for the fabrication of a full-scale facility and allow Cielo to provide economic metrics on a per litre basis.
R&D Facility Next Steps
Following completion of process testing with wood waste and the acquisition of sufficient data, Cielo will begin a controlled engineering approach to experiment, test and analyze plastics as the biomass infeed to produce distillate at a commercial scale. This work will include engineering design for front end process modifications and tuning of the reactor waste management system to achieve maximum yields and optimal product quality. Following testing and studies of using plastics as biomass infeed, the Company will commence additional research on commercial quantities of fuel production utilizing organic materials, railway ties, and other waste.
Full-Scale Facility Design at Fort Saskatchewan
Once testing and engineering data analysis from the R&D Facility concludes, the Company plans to commence concept work and front-end engineering design for the Full-Scale Facility. Cielo then intends to construct the Full-Scale Facility with specific capacity design, production rates, product revenue streams, operating costs, capital costs and overall economic metrics determined based on data from the R&D Facility as well as the operational characteristics observed at the Aldersyde Facility. Contemplation of the design engineering of the Full-Scale Facility is expected to commence in early 2023.
Details and timing of the Company’s plans for the Aldersyde Facility, the R&D Facility and Cielo’s future larger full-scale facilities are dependent on funding, which the Company anticipates obtaining through future revenues and financing as needed from time to time. Cielo remains committed to providing updates to shareholders on a timely basis as the Company continues to meet its milestones, and as new key objectives are established.
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Company: Aduro Clean Technologies Listings: CSE, OCTQB, FSE Tickers: ACT, ACTHF, 95DO Market cap at time of publication: 30 $ MCAD / 22 MUSD Stock price at time of publication: $0.89 CAD / $0,72 USD Business: Plastic recycling, bitumen upgrading, Renewable diesel & Aviation fuel Website: https://adurocleantech.com/ Comparable Peer evaluations: Purecycle 1,66 BUSD Clean Energy fuels 1,93 BUSD Agilyx 235 MUSD
ESGFIRE comment:
As we have previously stated Aduro’s plastics recycling technology (HCT) is versatile enough to be applied both on smaller and larger scale projects. This quote from the press release below is very reassuring “their HCT-based solution is a superior solution compared to alternatives. Their technology operates at low temperatures, has no issue dealing with high concentration levels of moisture, and is versatile enough to process other types of plastics and contaminates”.
We are impressed with the speed that Aduro is moving to secure a second potential partner in plastics recycling following initiated discussions in Europe recently with the well renowned Brightlands Chemelot Campus.
SARNIA, ON / ACCESSWIRE / November 9, 2021 / Aduro Clean Technologies (“Aduro” or the “Company”) (CSE:ACT)(OTCQB:ACTHF)(FSE:9D50), a Canadian developer of patented water-based technologies to chemically recycle plastics and transform heavy crude and renewable oils into new-era resources and higher-value fuels, has entered into discussions with Switch Energy(“Switch Energy”), a recycler and operator participating in Canada’s agricultural & industrial film recycling program by owning and operating the largest collection program for agricultural waste in the province of Ontario. The goal of these discussions is to develop a framework whereby the two companies can work together to design, build, install, and operate a pilot plant to process waste polyethylene and other types of waste plastics, such as polypropylene.
Canadian farms generate an estimated 60,000 tonnes of plastic every year. Farmers and their local communities would like to recycle agricultural plastics like bale/silage wrap, twine, and greenhouse film to keep their farms clean and prevent these materials from ending in landfills. But until now, there has not been a way to locally process this waste plastic in a cost-effective and environmentally friendly manner.
This is because most plastic recycling technologies and projects require large-scale installations to achieve economic feasibility, putting them out of reach for many recyclers. To address this and other issues, Aduro aims to deploy modular, smaller-scale facilities that can be co-located at or near waste streams. In the case of Switch Energy, the pilot plant will accommodate the need for farmers to economically divert their agricultural waste plastics from landfills. Successful implementation could result in similar projects across North America.
Switch Energy has over a decade of experience with the collection of agricultural waste, design and development of plastic washing, mechanical shredding, feed systems setup, and product offtake sales and marketing. This experience makes Switch Energy the ideal partner for this pilot plant. Aduro will provide expertise in the Hydrochemolytic™ technology (HCT) process design, including identifying optimal finished product specifications and engagement with the chemical and petrochemicals industry for long-term offtake engagement. The pilot plant will be scaled for tonnes per day capacity.
“Our discussions with Aduro over the past few months, along with an in-depth review of their technology, has convinced us that their HCT-based solution is a superior solution compared to alternatives. Their technology operates at low temperatures, has no issue dealing with high concentration levels of moisture, and is versatile enough to process other types of plastics and contaminates. Therefore, we are very excited about working with Aduro to advance this important technology to a commercial scale. As a farmer, I see the need for solutions, and not just regulations, so we don’t have to send agricultural waste to landfills,” says Don Nott, founder and CEO of Switch Energy.
The project enables Aduro to demonstrate the unique capability of the HCT technology, and it represents a natural progression for Aduro following its imminent attainment of the First Milestone. “Achieving the First Milestone remains a main goal for us, which means demonstrating that our technology works well in the continuous-flow mode needed for commercial systems. Our data supports new discussion regarding pilots for different applications, such as waste plastics,” explains Ofer Vicus, CEO of Aduro.
Both Nott and Vicus agree that the possibility of a similar project across the provinces of Canada, and all of North America, is very exciting, as it can eliminate the cost of landfill disposal by increasing the value of waste plastic. Aduro anticipates the proposed project will further demonstrate the economic feasibility of small-scale plastics processing using its HCT.
About Aduro Clean Technologies
Aduro Clean Technologies is a developer of patented water-based technologies to chemically recycle waste plastics; convert heavy crude and bitumen into lighter, more valuable oil; and transform renewable oils into higher-value fuels or renewable chemicals. The Company’s Hydrochemolytic™ technology activates unique properties of water in a chemistry platform that operates at relatively low temperatures and cost, a game-changing approach that converts low-value feedstocks into 21st-century resources. With funding and support from Bioindustrial Innovation Canada, the company has developed a pre-pilot reactor system to upgrade heavy petroleum into lighter oil.
About Switch Energy
Switch Energy is an Ontario-based company with 10 years of experience in recycling polyethylene and polypropylene waste plastic. Operating across Southwestern Ontario, the company collects materials directly from agricultural, horticultural, and marine business operations. Switch Energy has extensive experience shredding, washing, and recycling waste plastic into resin used in various plastics applications.
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 advice 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.
