Company: Environmental waste international Listings :TSXV , US OTC Ticker: $EWS $YEWTF Market cap at time of publication: $82 MCD Stock price at time of publication: 0.33 CAD Business: Tyre and waste recycling through reverse polymerization TAM Market size: 158 billion $ Comparable peer : Scandinavian Enviro systems $SES Website: https://www.ewi.ca/
One of our biggest holdings , EWI, today announced that they have received an additional $600.000 investment from their Joint Venture partner Torreco Inc. The payment is part of the $7 million investment which has been agreed on with Torreco Inc.
The press release stated ” Torreco has now invested $1 million and owns 10% of Ellsin. It is committed to investing an additional $6 million over the next four months. After investing $7 million, Torreco will own 70% of Ellsin; EWS will retain 30%. The $7 million will be used to expand and modernize this state-of-the-art plant utilizing EWS’s latest technology. EWS will receive a royalty of 6% of revenues, and the facility will be available for demonstration to potential EWS customers throughout the world.”
The Joint Venture partner Torreco has in return to to this investment opportunity agreed to build three additional waste tire facilities in Ontario over the next five years and will retian exclusive rights for Ontario if they live up to this comittment.
ESG comment: It’s very positive and promising that Joint Venture partner Torreco inc has continued to show their serious comittment to the development of the first full scale plant of the unique and patented reverese polymerization technology of EWI. In my opinion this facility, when ready, will contribute massively towards a global rollout of EWI technology for tire recycling customers worldwide. In total there are now 5 EWI facilities planned to be built: 4 in Canada by Joint Venture partner Torreco Inc and one by the EWI customer Windspace/Elysium in Denmark, Europe.
I own shares in this company personally andthis is not to be considered financial advise neither are my opinions to be considered recommendations of any kind, always do your own research !
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Company: Environmental waste international Listings :TSXV , US OTC Ticker: $EWS $YEWTF Market cap at time of publication: $85 MCD Stock price at time of publication: 0.34 CAD Business: Tyre and waste recycling through reverse polymerization TAM Market size: 158 billion $ Comparable peer : Scandinavian Enviro systems $SES Website: https://www.ewi.ca/
The share price of Environmental Waste International dropped sharply ,and at first glance unexplainably, on 23/3 2021 despite great news on 22/3 2021 about a Joint Venture which would enable the company to gain its first commercial facility in Ontario by way of a 10 million CAD investment by Joint Venture partner Torreco. With 3 additional plants commited by Torreco, the commercial plant being finalized in Sault Ste Marie, Ontario and the Nyborg plant about to be built by Windspace in Denmark EWS as of now has 5 facilities planned.
I’ve read this article several times, and found that it is seriously imbalanced and selectively chooses information to report on. I verified some information which I would like to report:
-The article talks about the emissions from the factory and fails to report that the total Carbon Dioxide emission equivalent from the factory is the same as the CO2e generated from two typical households.
-The article mentions the noise pollution and fails to highlight that the factory is located in an industrial area that is close to Algoma Steel factory.
-The article bundles the EWS technology with thermal treatment of tires (including pyrolysis), which is not fair. As shown in a very good article from Seekingalpha , the technology here is far more environmentally friendly compared to other “thermal treatment of tires”.
-The article does not address the problems associated with not recycling the tires; an article about tire recycling that does not address these problems, IMHO, is not a balanced one.
-The article mentions the storage of the tires, and fails to confirm that the tires will be stored in shredded format, which is far more environmentally friendly than the traditional storage of tires.
-The article also fails to report that the emissions from producing the raw material from tires using the EWS technology is 70% less that the emissions of producing the same material in virgin form.
As a result of this I decided to add to my position after this drop. I believe EWS has a very very bright future with many announcements to come shortly as I also explained in my recent article on this company.
I own shares in this company personally andthis is not to be considered financial advise, always do your own research!
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Company: Environmental waste international Listings :TSXV , US OTC Ticker: $EWS $YEWTF Market cap at time of publication: $85 MCD Stock price at time of publication: 0.34 CAD Business: Tyre and waste recycling through reverse polymerization TAM Market size: 158 billion $ Comparable peer : Scandinavian Enviro systems $SES Website: https://www.ewi.ca/
My analysis is that the market has seriously misjudged the Joint Venture partnership just announced as if EWS had negotitated from a position of weakness and is selling their test plant for pennies on the dollar. The actual situation as I interpret it could not be further from the truth.
The EWS business model is clearly built around reccuring revenues. Their plan is is of course to make money on each plant sold but the real and long term revenue is from a never ending royalty streams from each plant.With 3 additional plants commited by Torreco, the commercial plant being finalized in Sault Ste Marie, Ontario and the Nyborg plant about to be built by Windspace in Denmark EWS as of now has 5 facilities planned. Ongoing client discussions with other clients in are likely to be announced by the company sooner rather than later judging by the latest management discussion ” EWI is currently working on a number of plant sales with both public and private entities in Canada, Australia, the UK, Nepal, India, Denmark and Italy. The Company is also evaluating a number of potential partners in China.”
Joint venture with Torreco
In the press release you can read between the lines that the price of 7 million CAD is lower than it normally woud have been due to the fact that Torreco is committing to building three additonal plants. If instead EWS had raised the 7 million CAD which is now being invested by their Joint Venture partner Torreco it would first of all have been time consuming and secondly it would have caused a large dilution. I strongly beleive that EWS will have a lot easier time selling and signing more multi million dollar contracts by having a commercial facility in the own backyard built by their own engineers. What can also be read between the lines of the press release in the Joint Venture agreement is that EWS will be able to use the facility as a demonstration point for new prospective customers and clients
The first commercial facility will also be operational a lot sooner than the plant being built by EWS customer Windspace in Nyborg. My estimate is that EWS by choosing to sell their test plant at a reduced price to Torreco will save between 12-18 months of time and will have the Sault Ste Marie, Ontario commercial facility up and running in between 8-12 months. So instead of having to fly over to Europe for customer demonstrations EWS will now have a working commercial demonstration facility which they will still own 30 % in and get royalty payments withi driving distance of their main office.
Current debt situation of EWI Thanks to the joint venture Torreco will be consolidating all the debt of the subsidiary Ellsin Environmental Ltd . I expect that this should substantially improve the EWS balance sheet and This will put the company in a very strong financial situation.
ESG conclusion: EWS has a very exciting time ahead and the current pressure on the share price is a good entry point for anyone contemplating of taking a position in the company. I’m also expecting an update from the company shortly about ongoing customer and prospect activities. EWS is a 15 year in the making overnight success (ironically speaking) and has its most exciting growth in the near future.
I own shares in this company personally andthis is not to be considered financial advise, always do your own research!
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Cielo Waste Solutions Ticker: CMC.CN / CWSFF Listings: Canadian Securitites Exchange / US OTC Website:https://www.cielows.com/ Market Cap: 340 MCAD at time of posting Share price: 0.99 CAD at time of posting
Our biggest portfolio holding Cielo Waste Solutions today (3/3 2021) announced that they have acquired an interest FREE loan of 10 million CAD which will be used to buy a site near Edmonton Alberta for Cielo’s planned 100 % owned waste to high grade renewable fuel facility (“Edmonton Facility”). The factory will be able to generate annual revenues of 55 million CAD once completed. Cielo writes the following in the press release:
“This marks the beginning of Cielo’s expansion plans which is ahead of its previous schedule. Cielo will have the discretion to use the balance of the funds as needed, for working capital purposes, and to repay in whole or in part Cielo’s largest secured lender, which is currently owed approximately CDN$3.8 Million. “
The terms for the 12 month loan are impressive for a company of Cielos size, no interest is payed and the loan may only be converted into shares at a price per share of 1.02 CAD . Also Cielo has the right to repay the loan at any time during the 12 month agreement. The only drawback is that Cielo is required to pay a transaction fee of 700 000 CAD and also commission to a third party amounting to 800 000 CAD.
Cielo comments on this transaction in the press release: “Cielo believes these fees and commissions are well in line with industry standards and eliminate high interest payments and saves Cielo millions in debt payments without significant dilution of the company shares with an exceptional conversion strike price.”
CEO of Cielo Don Allan Comments on the transaction:
“To be able to purchase this land for cash and no mortgage allows Cielo the ability to choose numerous options to raise the $50 million for the construction of this facility and the extra money required to prepare the land. The plant will initially be engineered to produce annually approximately 33 million liters of high-grade renewable diesel which at todays prices is approximately CDN$55 million in annual revenues. The land is large enough to allow for multiple expansions. Cielo is having an amazing start to 2021 and is poised to continue strong growth on all fronts.” I certainly agree with the statement from CEO Don Allan And Cielo confidently remains our largest portfolio position by a far. Cielo is one step closer to becoming a multi million dollar business.
Company: Environmental waste international Ticker: $EWS Listing :TSXV MCAP: 47 M$ Business: Tyre and waste recycling through reverse polymerization TAM Market size: 158 billion $ Comparable peer : Scandinavian Enviro systems $SES Upside to peer evaluation: 429 % Website: https://www.ewi.ca/ Stock price at time of writing: 0.24 CAD
Upcoming catalysts: -EWS is currently working on a number of plant sales with both public and private entities in Canada, Australia, the UK, Nepal, India, Denmark and Italy. The Company is also evaluating a number of potential partners in China. ( see sources below) -Improved investment relations strategy
Environmental Waste International (EWI)has developed a patented ground breaking recycling technology for the latest 15 years which is now about to become commercially viable. I have written about this company before on my twitter page but I wanted to give a brief introduction to the company here for you fellow blog readers.
EWS develops environmentally friendly products for waste treatment and disposal. Its predominant focus is on recycling waste rubber, primarily tires, into valuable by-products which can be sold and reused.The Company has built a full-scale Pilot Plant Tire System.
The system breaks the molecular bonds in tires and other rubber products, reducing them to their base components of carbon black, steel and hydrocarbon vapors. An off- gas system processes the vapors to recover the oil, the remaining gas is used as fuel for the plant .Governments and industries worldwide recognize the need for technology to deal with the processing, treatment and eventual disposal or recycling of tires and other waste rubber products in a environmentally safe manner. EWS provides unique and effective solutions this problem. EWS business model is to both sell plants and earn royalty on the commodities that these plants produce . This will make way for a very good mix of both one off sales and reoccurring revenue streams .
In addition to tires, EWS has designed solutions for the safe disposal, recycling and/or recapture of useable byproducts for the following waste streams: •Liquid Biological Waste Systems; •Food Waste •Medical Waste •Animal Waste
Conclusion
EWS has a ridiculously low market cap for a company which already has an order of 100 million dollars . EWS has crossed the barrier towards becoming commercially viable and the risk is considerably lower than for its competitor $SES. $SES does not have any real revenues yet. I beleive this is a REAL ESG investment which mutual funds and other institutional actors will race to become shareholders in once the market cap becomes big enough which we believe is only a matter of time . Hence I’ve made EWS our TOP 3 BIGGEST investment along with Cielo waste solutions.
EWS has recently won an order worth 100 million USD from Windspace in Denmark which will build the first large commercial plant for EWS in europe. EWS is on the verge of commercialization breakthrough but this has yet to be reflected in the stock price . When comparing with $SES Scandinavian enviro systems my insight is that there could be a 400 % upside from current levels.
The EWI customer Windspace has already gained environmental permits and financing for its first factory in Denmark with construction beginning in 2021 . This news has yet to be acknowledged by the stock market. Windspace has also invested in EWS as a shareholder . Windspace has even said in a podcast that they chose EWS technology over Scandinavian enviro systems because the technology is BETTER. Windspace were originally going to partner with Scandinavian enviro systems!
Tire recycling plants using EWS’ technology do not require tipping fees, carbon credits or other government support to generate a compelling ROI which makes it standout from its competitors.
Markets sub Categories 90 billion- Liquid waste 50 billion USD -Food and animal waste, 9.5 billion USD- Tires 9 billion USD – Medical waste
This is an introductional post. Further detailed analysis will be done coming up. I wanted to share this NOW with you readers since the technical chart looks like the EWS stock might be poised for a breakout. As always do your own research and this is not to be considered financial advice.
