Aduro Completed Work on Its First Milestone and Submitted a Report for Third-Party Evaluation, a Critical Step Towards Commercialization of Their Innovative Chemical Conversion Technologies

Company: Aduro Clean Technologies
Listings: CSE, OCTQB, FSE
Tickers: ACT, ACTHF, 95DO
Market cap at time of publication: 26.3 $ MCAD / 20.54 MUSD
Stock price at time of publication: $0.76 CAD / $0,59 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:
Aduro today (2/12 2021) released much anticipated news that they have completed their work in support of their first milestone which is a part of the third party validation for validating the commercial scalability of their HTC technology. The details of this work have been summarized in a report and submitted for third-party evaluation. The release states “These results form the foundation for HCT scaleup to pilot plants, precommercial deployments, and and full-scale commercial systems.” ESGFIRE views it as extremely bullish that CTO of Aduro , Mark Trygstad,thinks the results of thecontinuous-flow R2 pre-pilot reactor are even more promising than anticipated. Furthermore CTO Marc Trygstad stated “This significantly strengthens our projections regarding lower operating costs in commercial applications, along with improved scoring on environmental factors, such as reduced emissions and energy consumption,”.

The implications of these promising results cannot be stressed enough since these results derisks the whole investment case of Aduro and it will be easier to attract both partners and clients with a fully validated technology which has already been proven to work in continous flow. As previously stated Aduro’s technology is expected to be able to process plastics types that today are not possible to recycle such as polyethylene and polypropylene. ESGFIRE looks forward to hearing more positive news from the company !

Full press release available below:

SARNIA, ON / ACCESSWIRE / December 2, 2021 / Aduro Clean Technologies Inc. (“Aduro“, or the “Company“) (CSE:ACT)(OTCQB:ACTHF)(FSE:9D50), is a Canadian developer of patented water-based technologies to chemically recycle plastics, and to transform heavy crude and renewable oils into new-era resources and higher-value fuels.

Aduro is pleased to announce that the Company’s scientists have completed their work in support of the First Milestone as set out in the Share Exchange Agreement dated October 22, 2021, and as amended in the Share Exchange Agreement. The details of this work have been summarized in a report and submitted for third-party evaluation.

The independent third-party evaluator named in the Share Exchange Agreement is Dr. Paul Charpentier, who will shortly report on his findings. His role is to:

  1. Examine the methodology used by the Aduro scientists and the results obtained in view of the objectives defined in the Share Exchange Agreement, and then
  2. Certify if those objectives were met.

The results of the completed work of the First Milestone demonstrates that the patented Aduro Hydrochemolytic™ technology (HCT), developed and proven by Aduro in small batch R1 reactors, is viable for use in the types of continuous-flow reactors commonly used in commercial applications. In this case, HCT was applied to improve the properties of bitumen, but the technology has other important applications. For the demonstration, bitumen feedstock with an “API gravity” (density) of 14.6 ºAPI was upgraded to lighter petroleum with a density of 19.1 ºAPI. (Higher ºAPI values mean lower density and higher market value.)

“Results achieved with the continuous-flow R2 pre-pilot reactor exceeded expectations. Compared to batch mode, it delivered equivalent upgrading results more quickly and at lower temperatures, and with lower catalyst loading,” says Marc Trygstad, CTO of Aduro. “We had already proven HCT in small-scale R1 batch reactors, but the efficiency of HCT in R2 increased by a factor far greater than 10. This significantly strengthens our projections regarding lower operating costs in commercial applications, along with improved scoring on environmental factors, such as reduced emissions and energy consumption,” adds Trygstad.

These results form the foundation for HCT scaleup to pilot plants, precommercial deployments, and full-scale commercial systems. They also create the context required for Aduro to further optimize its processes, and to engage potential partners and customers through demonstration projects. For example, the R2-scale work on bitumen supports the next-phase design of the pilot-scale R3 reactor system to process barrels-per-day of bitumen, which was begun in June 2021. Furthermore, lessons learned from bitumen processing are also being applied to accelerate design of an R2-scale demonstration system optimized for upcycling of plastics, like polyethylene and polypropylene.

“My thanks to the Aduro technology team for supporting this critical milestone and exceeding our expectations. Having delivered on this key commitment to our investors, the knowledge gained allows us to now advance and accelerate our efforts on the next phase, which is the pilot-scale demonstration of HCT,” says Ofer Vicus, CEO of Aduro.

About Dr. Charpentier

Dr. Paul Charpentier is a Professor of Chemical & Biochemical Engineering at Western University in London, Ontario, where he has served as a faculty member for over 20 years. He holds a Master of Science degree in Polymer Chemistry from the University of Waterloo, and a PhD degree in Chemical Engineering from McMaster University.

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.

Legal Disclaimer

We 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 website.

Solarvest Web Site Launched in Hong Kong to Service South East Asia massive sales potential!

Company: Solarvest Bioenergy Inc.
Listing : TSX Venture,Frankfurt
Ticker: SVS.V , 0ZJ:FRA
Market cap at time of publication: $6.64 MCAD
Stock price at time of publication: $0.12 CAD
Business: Patented plant based pharmaceuticals from algaes and Clean Energy Hydrogen production
Comparable peers: Else Nutrition market cap : 306 MCAD
Website:http://www.solarvest.ca/ and for the omega 3 products: https://eversea.ca/

ESGFIRE comment: Less than 2 months ago Solarvest announced they would be launching products in Asia and the United states through their partner OrgHive which have 23 million users online they have now announced that their products have been launched on OrgHive’s e-commerce platform for customers in Southeast Asia. Details about the partnership have been described before. Solarvest describes the launch as follows ” The OrgHive/Eversea site has also been translated to Chinese for the convenience of OrgHive’s 23 million unique organic-oriented customers.  Customers in China can now access detailed information on the world’s first organic certified DHA product along with the chemical-free, clean label messaging. The e-commerce portal has also been configured and implemented. “

The press release states further” In addition, OrgHive and Eversea have developed a messaging program to promote/educate customers, on popular Chinese social media platforms, about the advantages of organic certified algae Omega-3. Fish oil is an established category and until now there has been no alternative that provides the assurance of product(s) that avoid environmental contamination and industrial chemical processing. The messages are designed to promote organic algae as a superior source of Omega-3, the importance of Omega-3 for brain health/growth, and general education on the types of Omega-3 with emphasis on the superior nature of long-chain Omega-3 (e.g. ALA vs. DHA). “

The sales potential on the OrghHive platform is clearly massive. A previous calculation by ESGFIRE has shown that if Solarvest attracts ONLY 0.1 % of the customer base (23000 customers buying 12 bottles a year at 20 USD per bottle) this could equal 5.5 million USD in annual sales.The company has clearly been working fast in order to get this product launch going as fast as possible and it will be very exciting to follow the progress which could have immense implications for the evaluation of Solarvest which is currently sitting on a market cap of just 6.64 MCAD!

Link to website:  https://eversea.orghive.com/

About OrgHive

The OrgHive organic community has garnered 23 million unique users since inception last year. They provide organic related content to consumers online and have developed a blockchain-based verification system for organic products that are purchased throughout mainland China. Furthermore, the platform developed by OrgHive will reach organic consumers beyond China, including those located in other parts of Asia. There are no commercial or regulatory barriers for Ever-sea to sell its products to Chinese consumers through OrgHive’s online platform.

 OrgHive will promote Eversea’s algae-based, certified organic Omega-3 DHA, the first of its kind in the world, to millions of its registered subscribers. OrgHive will be responsible for logistics, fulfillment and all digital marketing activities, including social media.

About Solarvest

Solarvest BioEnergy Inc. is an algae biologics company whose production platform provides it with an extremely flexible system capable of producing numerous products from Omega 3 fatty acids to human therapeutic proteins. The Company has successfully developed, patented and produced the world’s only plant-based organic certified Omega-3 to satisfy the substantial demand for this essential nutrient.  The Company has also initiated a program for the expression of CBD and THC to be produced in GMP fermentation facilities.

Legal Disclaimer

We 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 website.

Newlox gold provides update on financials !

Company: Newlox Gold Ventures Corp
Listings : Canadian Securities Exchange, Frankfurt, US OTC
Tickers: LUX , NGO, NWLXF
Market cap at time of publication: $ 33 MCAD
Stock price at time of publication: $0.25 CAD

Business: Environmentally friendly and socially responsible gold mining
Market Size: US$180bn 
Website: https://newloxgold.com/

ESGFIRE comment: Newlox Gold today gave a welcomed update on their latest financials. There was alot of turbulence in their stock yesterday (nov 30th) due to lacking explanation of their revenues that were a lot lower than anticipated. The company states they have had supply issues with reagent and also some construction issues for the boston plant. The company however seems confident that they soon will be up to full production at plant 1 with 6500 ounces of gold being extracted per year (this equals revenues before any cost deductions of $11,6 MUSD).
The cash cost target is approximately $600 per ounce, and the all-in cost target is sub $700 per ounce, including royalties.

For the Boston plant management expects to process 150 tonnes per day with a feed grade of +- 15 grams per tonne gold with an anticipated gold recovery of 90%. Newlox Gold expects to recover approximately 20,000 ounces of gold per year from the Boston Project. The revenues for the Boston project (before any cost deductions or royalty fees) could be as high as 28,2 million USD per year ; assuming 150 tonnes per day and 15 grams per tonne equalling 2250 grams / 72 oz per day and 200 days of productions per year (conservative estimate) .To give you as a reader an idea of the revenue potential based on a full production year with these projects alone the company could be looking at revenues .of 39,8 MUSD (however cost deductions for both plants and royalties for plant 2 are not included in this.) The first processing plant is soon ramping up to full scale, and Boston will begin commercial operations in early 2022.

Full press release below:

Vancouver, BC – TheNewswire – 1 December 2021 – Newlox Gold Ventures Corp. (“Newlox” or the “Company”) (CNSX:LUX.CN) (Frankfurt/Stuttgart:NGO) (OTC:NWLXF) is pleased to announce it has filed its quarterly unaudited financial statements and management discussion and analysis on SEDAR (www.sedar.com), and to provide an update on operations.

During the period, the Company has been ramping-up operations at its first ESG-focused artisanal tailings remediation and precious metals recovery plant (Plant 1) while also undertaking the construction of its second processing plant, the Boston Project. Newlox Gold is pleased with progress at both projects and is in a strong cash position with growing quarterly earnings.

At Plant 1, revenues have increased each month in 2021 as throughput and productivity continue to advance towards the Company’s goals. However, growing monthly productivity has not accelerated as quickly as management intended. Slower than targeted growth has primarily resulted from supply chain interruptions, which have not allowed the operations team to fully implement operational circuit adjustments inherent to the ramp-up process as quickly as would usually be possible.

The processing plant has operated at a throughput level as high as 50 tonnes per day, representing a significant increase from previous operations. However, the processing plant’s efficiency decreased at that level of throughout, requiring some adjustments to the milling procedure and changes to reagent types.

After considerable analysis, the Company’s engineers have developed new procedures to maintain efficiency at higher levels of throughput, but the availability of the necessary supplies has slowed implementation. Typical reagent suppliers in Asia have not adequately supplied the domestic market in Central America. The Company has now successfully found alternate sources of the required reagents in South America.

Although throughput growth at Plant 1 has progressed slower than expected, the operations team has made consistent monthly progress this year and operations management remain confident they will achieve the Company’s goals. Plant 1 will process 80 tonnes per day of artisanal tailings feedstock at base-case full-scale, with gold recovery expected to exceed 6,500 ounces per year.

At the Boston Project, the Company has navigated the hurdles of the pandemic and the associated global supply chain disruptions to procure the crushing infrastructure, conveyor systems, and a large ball mill. Construction activities have accelerated since the end of the wet season in November, and Company’s construction contractors anticipate project completion at approximately the end of the year.

Newlox plans to operate the new Boston mill at 150 tonnes per day with a feed grade of +- 15 grams per tonne gold with an anticipated gold recovery of 90%. All feedstock is to be provided by Newlox’s mining partners, with profits to be split evenly between the parties. The Boston Project is expected to significantly contribute to the Company’s growing productivity in 2022.

In Brazil, the Company continues to make progress on its planned expansion following the successful application of recovery and rehabilitation procedures in Costa Rica. Further information on Newlox Gold’s regional growth strategy will be provided in upcoming news releases.

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.

MASSIVE oversubscription for our IPO case in Chargepanel!

Company: ChargePanel
Ticker: $CHARGE
Website:https://www.chargepanel.com/
Industry:
ChargePanel specializes in the management, operation and usage of Electric Vehicle Charge Points.
We provide adaptable solutions for charge point owners, resellers and organizations.
Pre money valuation: 7,78 MUSD or 71 MSEK
IPO offering size: 2,73 MUSD or 24,9 MSEK
IPO signup period: 16-30th of November.
IPO date: The first trading day is anticipated to be 9th of december 2021 at First North
Prospectus
https://www.chargepanel.com/sv/ir/detaljer-ipo/
IPO price: 0,65 USD or 5,9 SEK
Target price: Analyst group has put a (what ESGFIRE thinks is a conservative) target price of 0.94 – 1,13 USD or 8,5-10.2 SEK in a Base / bull Scenario.

ESG Comments: Chargepanel today announces that they have received an interest of 365 % for their IPO financing. This constitutes subscription of 10,11 MUSD / 91.25 million SEK of the 2,77 MUSD / 25 Million sek IPO. The company will be getting approximately 1100 new shareholders through the IPO. CEO of Chargepanel Jan Berggren commented “I am very happy and grateful for the big interest in our company and that we will be getting approximately 1100 new shareholders in Chargepanel. We look forward with joy towards an exciting future!”

We have previously written an analysis explaining why we are signing up for this IPO and we will also be buying shares on the day of the IPO despite possibly higher evaluation with this in mind. The first trading day will be 9th of december on Nasdaq First North.

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.

Vicinity Motor Corp. to Participate in Upcoming Investor Conferences in December

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)

Registration: https://cleantech21.mysequire.com/

SNN Network Canada Virtual Event 2021

Date: Wednesday, December 8th, 2021

Time: 11:30 a.m. Eastern Time (8:30 a.m. Pacific Time)

Registration: https://canada.snn.network/

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.

Why we are signing up for the Chargepanel IPO !


Company:
 ChargePanel
Ticker: $CHARGE
Website:https://www.chargepanel.com/
Industry:
ChargePanel specializes in the management, operation and usage of Electric Vehicle Charge Points.
We provide adaptable solutions for charge point owners, resellers and organizations.
Pre money valuation: 7,78 MUSD or 71 MSEK
IPO offering size: 2,73 MUSD or 24,9 MSEK
IPO signup period: 16-30th of November.
IPO date: The first trading day is anticipated to be 9th of december 2021 at First North
Prospectus
https://www.chargepanel.com/sv/ir/detaljer-ipo/
IPO price: 0,65 USD or 5,9 SEK
Target price: Analyst group has put a (what ESGFIRE thinks is a conservative) target price of 0.94 – 1,13 USD or 8,5-10.2 SEK in a Base / bull Scenario.


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.

Background and 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.

Scalability, profit and evaluation.

Since the company uses a SaaS-business (Software-as-a-Service) model they can grow their business exponentially and with high scalability without radically increasing their costs. The research firm Analyst Group projects the company will reach break even by 2023 and an EBIT margin of 15 % by 2024. For 2022 the company is valued at a Price to sales of 6.3 . Analyst Group states that Chargepanel based on 2023 figures is , based on their IPO evaluation, considerably lower valued at EV/Sales of 2,3 compared to a 9.3 multiple for their peer group.

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 price of 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.

The winter slaughter of Microcaps and the inflation ghost

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.

What is being debated right now is if the current spike in inflation is temporary ( due to bottle necks in production caused by COVID) or if higher inflation is here to stay. Both sides of the debate have valid points and there is no crystal ball.

Our thoughts

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.

Cielo Announces Improved Earnings Potential by Eliminating Royalty and Refinery Fees

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:

  1. 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”);
  2. 1888 provided and Cielo accessed capital for the development of the Technology owned by Cielo;
  3. 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;
  4. Cielo had the right to develop and improve the Technology and did continue and will continue to develop the Technology to commercialization and beyond;
  5. 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
  6. 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.

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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.

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Hydrogenpro reports third quarter 2021 results + ESGFIRE comments

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.

The third quarter 2021 report and presentation are enclosed and available
through http://www.newsweb.no (OSE: HYPRO) and http://www.hydrogen-pro.com. A live streamed
webcast presentation will be held by CEO Elling Nygaard and CFO Martin T. Holtet
at 10:00 CET today. Link to webcast:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20211122_1

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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.

HydrogenPro sets up joint venture as basis for global fabrication plan

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.

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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.