We recently highlighted three green tech stocks on March 24th, 2020 in our recent publication titled “3 Green Tech Stocks to watch When Markets Rebound”. Since our publication shares of Greenlane Renewables (TSX-V: GRN) have surged 62% from $.215 cents to a high of $.35 cents, Kontrol Energy (CSE: KNR) have rallied 52% from $.25 cents to a high of $.38 cents in two days and Xebec Absorption Inc. (TSX-V: XBC) have seen their shares increase 50.7% from $1.99 to a high of $3.00 on March 26th 2020.
Since Monday Greenlane has updated the market regarding its operations during Covid-19, and its business as usual for GRN. Although many businesses have slowed down operations due to Covid-19, Greenlane has stated that the company saw a short-lived manufacturing distribution in China and operations have continued. The CEO of GRN stated “Greenlane incorporates an asset-light business model that allows for operational flexibility and, as such, we outsource much of our equipment manufacturing to a number of trusted supply chain partners based strategically around the world,”.
GRN raised capital at a very opportunistic time right before the market turmoil and should be more then enough to weather the storm and the GRN has seen an increase in business due to isolations. The CFO Lynda Freeman stated “We continue to prudently manage our liquidity position during these uncertain times to react to the changing business climate. Interestingly, our business development activities have increased due primarily to the fact that customers are now isolated in front of their computers and progressing potential projects.”
We expect Greenlane Renewables will have more significant news in the near term and should help the stock reach its previous funding levels of $.50 cents which represent an increase of another 66.6% from the closing price of $.31 cents.
Shares of Kontrol Energy (CSE: KNR) have rallied since our previous article on Tuesday as shares increased 52% from $.25 cents to an intraday high of $.38 cents. On March 24th 2020 KNR posted on its website that the company has been deemed as an “essential service” in Ontario and is business as usual however safety precautions are being taken to insure the ultimate safety of both its staff and clientele.
KNR has recently completed an investor webinar at this year’s spring Investor summit hosted in New York City. The company further stated in its presentation that the company will be announcing developments in the coming weeks and months in regards to its planned dividend which was previously announced on January 22nd 2020. Kontrol intends on issuing the dividend as a means to drive shareholder value as investors would receive .7 shares in Efficiency Engineering Inc. (EEI) a wholly owned subsidiary of Kontrol Energy. Along with the dividend we anticipate that KNR will update investors on several planned projects which includes additional pilots with Toyota, Beyond Meat, expansion in the US and Saudi Arabia through their partnership with Zedan Group and solid year end financials.
Xebec Absorption (TSX-V: XBC) has seen a huge rally in its stock as the company was dubbed an essential business by the province of Québec. We highlighted shares of XBC on March 24th at $1.99 and since the company’s shares have soared 50% in two days to a hitting a high of $3.00 on Thursday. The company stated in its press release that XBC will continue its business in regular course of operations and manufacturing facility located in Blainville, Québec. The company also stated that it has supplied over 10,000 pieces of equipment to organizations who are at the forefront of combatting the deadly virus Covid-19. An example of why XBC is deemed an essential service in Quebec is due to the fact that the company is a leading supplier of medical air systems with over 100 installations in Québec and is qualified as an essential business as a supplier of equipment which services the healthcare, energy and pharmaceutical industry.
Not only have operations at XBC’s facilities resumed 3 ½ weeks ago but has since expanded its operations. With an order backlog to the tune of $95.1 million, $20 million of cash on hand and $18 million worth of warrants exercisable in the range of $1.05 to $1.85, XBC is well positioned to weather the storm and investors should expect more developments in regards to the backlog of orders as the company may announce some big news in the coming weeks.
Forward Looking Statements: This article may contain "forward-looking information" (as defined in applicable Canadian securities legislation) that is based on expectations, estimates and projections as of the date of the content is published on this website. Wherever possible, words such as "anticipate", "believe", "expects", "intend" and similar expressions have been used to identify these forward- looking statements. Information in this article has been furnished for your information only, is accurate at the time of posting, and may be superseded by more current information. Except as required by law, we do not undertake any obligation to update the information, whether as a result of new information, future events or otherwise. This article should not be considered as personal financial advice. Full Disclosure: None of the companies mentioned in the article are not clients of The parent company of EquityInsight.ca Directors of the parent company of Equity Insight may buy, hold or sell the securities before during or after this publication.