Greenlane Renewables Inc.
Back in March we put shares of Greenlane Renewables (TSX-V: GRN) on alert for investors when shares dipped down to $.21 cents and since then GRN has rallied to a high of $.425 cents for an increase of 102%. In late May, GRN announced that it has generated $2.9M for its first quarter and a gross profit of $1.3M or 44% of revenue. GRN states that its sales order backlog (note one) has increased 40% from 16.2 million in December 31st 2019 to $22.6 million and sales pipeline has grown 3% from $670 million to $700 million during the same period. Despite the Covid-19 pandemic shaking operations for many companies around the world, GRN continues to operate fully staffed and is working with its partner SWEN Capital Partners in France to accelerate the distribution of Greenlane’s biogas upgrading systems under an newly formed joint venture company.
More recently, on May 29th Greenlane has announced that it has appointed Dale Goudie as Vice President, Technology and Product Management and the company has also appointed Jim Bornholdt as Vice President, Purchasing, Project Management and Quality, Health, Safety and Environment. CEO of GRN Brad Douville stated “Since both joining the team in 2018, Dale and Jim have been instrumental in strengthening Greenlane’s position as an industry leader, by bringing technical and supply chain excellence to our business operations,”.
We will be paying close attention to GRN’s strategic growth both here and internationally as the company converts its sales pipeline into contracts which will add revenues to the company’s bottom line.
Xebec Adsorption Inc.
Xebec Adsorption Inc. (TSX: XBC) (OTCQX: XEBEF) is a green tech company that we also put on alert for investors in March when shares of XBC traded at $1.99 and since then, shares of XBC have rallied 119% and shares reached $4.36 as on June 1st 2020.
XBC announced on May 27th its first quarter results and XBC reported revenues of $12.2 million, an increase of 24% when compared to the same time period in 2019 of $9.8 million in revenue. Xebec Adsorption has increased its backlog $17.9 million to $89.8 million on May 28th, 2020 from $71.9 million when compared to May 27th, 2019. Due to the order backlog, XBC anticipates annual revenues of 2020 to be in the range of $$80 - $90 million and XBC expects gross margins to increase approximately 10% from 30% to 40%.
On June 5th 2020, XBC announced that it has increased its previously announced bought deal on June 4th from $21 million to $25 million with Desjardins Capital Markets as underwriters. XBC intends to invest the proceeds in new renewable gas projects, strategic growth and general corporate purposes. The bought deal of $25 million is expected to close on June 26th, and it will be interesting to see other developments after the capital raise is completed.
Investors should keep their eye on XBC for the second half of 2020 as analysts have a target of $7.00 per share and would represent an increase of 76% from the close of $3.96.
Kontrol Energy Corp.
A great technology company we have been tracking for quite sometime which has recovered quite well since the Corona crash is Kontrol Energy Corp (CSE: KNR) (OTCQB: KNRLF). Kontrol Energy has dipped to a 52-week low of $.22 cents due to the global pandemic that shock markets, and KNR has since risen 104% to $.45 cents. On June 1st 2020, KNR announced that it has generated CAD $2.8 million in revenue for its fourth quarter results along with an improvement in gross margins of 61%, up 10% from 51% when compared to the same time period last year. Paul Ghezzi CEO of KNR was quoted "We have been operating as an essential service provider, through the COVID-19 crisis, meeting the needs of our existing customers and expanding into new markets. We have been very focused on managing our costs and ensuring fiscal discipline across our operating platform and are pleased that we have been able to deliver positive EBITDA in Q1”.
In addition to recent developments, KNR has also signed a definitive share purchase agreement for a planned acquisition of a building energy and equipment monitoring company. KNR anticipates completing the acquisition of the unnamed energy company by the third week of June 2020. The acquisition will provide investors a great catalyst which could drive share of KNR higher.
Zoomd Technologies Ltd.
Zoomd Technologies (TSX-V: ZOMD) (OTC: ZMDTF) is a new advertising company from Israel we recently wrote about in our article titled “From Start up to Blue Chip Clients”. We highlighted ZOMD as what we believe to be a great company as the company has recently announced that it has generated over CAD $36 million in annual revenues and currently sits at a valuation of CAD $51 million. ZOMD operates in two segments, both on the publisher side and the advertiser side. For publishers, ZOMD implements its own search engine for publishers in order to generate more income, and on the advertisers’ side, it enables companies to better utilize traffic data and analytics for better conversion to purchases. The conversion to a higher purchase rate helps advertisers increase their revenues through improved conversion rates and reduces the media spend due to the data analytics ZOMD offers its clients.
Since our recent publication at $.32 cents, shares of ZOMD have increased 71% to $.55 cents on no news however investors are starting to take notice and conduct their due diligence on this hidden advertising company. Insiders and angel investors hold a majority of the stock representing 88% of the float which leaves approximately 11.5 million shares that are available, making it possibly one of the tightest floats we have come across and should be placed on HIGH alert for investors as more developments on additional contracts and strategic growth which may be on the horizon.
Sona Nanotech Inc.
Sona Nanotech (CSE: SONA) (OTCQB: SNANF) is a Corona virus stock which we put on high alert as one of our top covid-19 stocks back in march at around $.51cents, and since then, shares of SONA have rocketed to a high of $3.80 for a return of 645%. Shares of SONA rallied to a high of $3.80 on rumors that the company had received validation of the company’s Covid-19 test kit and is preparing for mass manufacturing. On May 22nd 2020 announce that it has engaged MRIGlobal, a leading scientific research organization to assist SONA in conduct clinical validation studies and analytics for its Covid-19 rapid testing kits. These studies will be used for a submission to Health Canada for regulatory approval and Emergency Use Authorization (EUA) with the Food and Drug Administration (FDA). CEO of SONA Darren Rowles was quoted "We are delighted to be moving into the final validation process and looking forward to the potential of a test that can tangibly advance the safety and quality of life for our communities. Our lab team, in particular, deserves credit for their tremendous work in significantly progressing our antigen test prototype in a short period of time”.
We remain bullish on SONA as one of the few small cap Covid stocks and investors should continue to keep a close eye as positive developments from Health Canada and the FDA could propel shares of SONA significantly higher.
Geomega Resources Inc
Geomega Resources Inc. (TSX-V: GMA) (OTC: GOMRF) is a new rare earth company that we have been tracking as of late due to an increase in volume. Geomega aims to reduce and recycle the waste that is produced from rare earth magnet manufacturers. Recently, GMA has temporarily shifted its pilot project located in the National Research Council facility in Boucherville Quebec to manufacture hand sanitizers for the province. GMA is currently able to produce 675 liters of hand sanitizers and the company intends to supply old age retirement homes and hospitals in the province. It is important to note that these changes are not a shift of business but rather to capitalize on an opportunity that has an infrastructure already in place to generate revenue in the immediate term. Geomega also announced recently that it has added Matt Silvestro, the president and owner of Jobmaster Magnets Canada Inc. to its board of directors.
Jobmaster Magnets Canada is a partner of GMA, as Geomega entered into a partnership with Jobmaster back in February to assist with suppling waste feed to Geomega. CEO of GMA Kiril Mugerman stated “Matt's experience in operation management, setting up the required ISO Quality management programs and internal audits will be vital in the starting up of the first rare earths recycling plant”.
With possible supply agreements for the company’s new hand sanitizer with hospitals and nursing homes in Quebec and the further development of its facility to convert rare earth waste later this year, GMA is an under the radar stock that may break out of the $.20 cent range with substantial developments.
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