Source: Ron Struthers for Streetwise Reports 06/04/2018
Ron Struthers of Struthers Resource Stock Report profiles four green tech and tech companies that have seen new developments.
In this issue an update of significant developments on some of my green tech and tech companies I follow. A lot of new developments in the past week.
Greenbriar
TSXV:GRB OTC : GEBRF Recent Price C$1.15
Things are picking up speed with Greenbriar Capital Corp. (GRB:TSX.V; GEBRF:OTC) as the company executed a $50-million (U.S.) mandate arrangement with a major U.S. investment fund to provide the essential project equity portion of the proposed $305-million (U.S.) Montalva project financing package. This occurred in early May and this $50-million (U.S.) equity financing will not dilute the issued common shares as this is a structured product at the project level.
Last week, Greenbriar executed an additional $265-million (U.S.) mandate with Pegasus Renewable Energy and Sustainable Infrastructure Credit Advisors LP (RESIC) for the company’s 100-megawatt AC Montalva solar project. Together with the previously disclosed $50-million mandate with Pegasus, the total under letter of intent is now $315 million, which covers the entire forecasted project cost.
RESIC specializes in key mezzanine capital investments and is an affiliate of Pegasus Capital Advisors LP, an alternative asset management firm with approximately $1.9 billion in assets under management. Pegasus invests in companies within the sustainability and wellness sectors that are seeking strategic growth capital.
As an incentive to RESIC, the company will issue upon certain conditions, two million common share purchase warrants exercisable for a period of five years at a price of $1 per share. The RESIC finance team for this $265-million LOI is led by Thomas Emmons. Mr. Emmons is an experienced financier in the U.S. renewable energy business and has been involved in financing over $20 billion in wind and solar projects in the United States since 2008.
One of the toughest hurdles to develop any resource or energy project is obtaining the financing for build out and Greenbriar now has this all wrapped up, so a major risk factor has been removed.
The project is on fast track as a critical energy and infrastructure project for Puerto Rico under the U.S. Financial Management and Oversight Board. I believe we are not far off from the day that this gets the green light to start construction. Not to repeat myself, but is important to remember that Montalva once built will generate revenue of US$58 million per year for 35 years to Greenbriar. That is over three times Greenbriar’s current market cap.
What is more, Greenbriar released news today on further developments of its 132-acre land tract in southern California. The company has engaged Co-Create Living; it’s founder Stuart Nacht has over 40 years of experience in real estate construction and development. Greenbriar’s plan is to develop and sell over 1,000 residential town home units. The property had already received approval for a previous 688 unit plan so this will be revised by Co-Create Living.
California is facing a severe housing shortage with median home prices about double the national average and rents about 50% higher. Greenbriar will be part of the solution and as per the new California law will equip their homes with solar panels from its solar division.
Once fully built out, the property will yield over US$260 million in gross sales, more than 15 times Greenbriar’s current market valuation. I believe this in one of the most undervalued and unknown stocks listed in Canada.
There are some interesting observations on the chart. I see a rising up trend with higher lows and the 200 Day MA still moving up, although flat the past month. The top or resistance is around $1.55. The trading volume on this stock is light but you can see an increase since last November. It reminds me of a pot on slow boil with the lid on tight and you know it will eventually blow off. I believe this is what we will see here, a pop and quick sharp move through $1.55 and it really there is no resistance above that so it will launch into some higher trading range.
I would be using the current market weakness to accumulate stock
Smartcool TSXV:SSC OTC:SSCFF Recent Price C$0.055
Smartcool Systems Inc. (SSC:TSX.; SSCFF:OTC; R3W:Frankfurt) released Q1 2018 results on Friday with revenue of $314,363 up 265% over Q1 2017. This is good news, although the revenue growth has been slower to gain momentum than I expected. In 2017 revenue came in at $774,279 for the year and by Q1 2018 I was expecting a revenue run rate of several million and at the current pace we are only around $1.2 million.
I believe they have some momentum to continue to grow revenue but there are two short-term factors we need to watch that could make a big impact for 2018.
Early March SSC announced and LOI to acquire Total Energy Concepts (TEC), based in the U.S. state of Minnesota.TEC is a distributor of Smartcool products but more importantly has its own line of energy efficient products and has been in business since 2003. SSC needs to close on this acquisition and then we could see the stock react better as it would add significantly to revenues.
The second catalyst will be Smartcool’s agreement with Mike Holmes and The Holmes Group to partner and promote the company’s ECOHome products internationally. They are first focused in the southern U.S. states and if sales get traction for this new home product, it could add significantly to revenues.
I don’t believe the stock is going to take off at least until they close a $800,000 financing at 5 cents.
The stock remains in the wedge pattern I pointed out a couple months back and the 200 Day MA is still in an uptrend but leveling off. The range has been tight between 5 and 6 cents. A close …read more
From:: The Energy Report