Demand for dynaCERT clean technology drives company forward - InvestorIntel
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Demand for dynaCERT clean technology drives company forward Cashed up, ramped up production line, and senior listed Vehicle emissions are universally recognized as an environmental concern, especially diesel emissions which the WHO has linked with causing cancer. Governments all over the world are continually tightening their emission standards. In 2020 both Europe and China made significant moves to reduce vehicle emissions. Once company in particular has the potential to be winner from the huge trend to reduce diesel emissions. dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF) manufactures, distributes, and installs its Carbon Emission Reduction Technology (CERT) for use with diesel engines. Their flagship product is HydraGEN™, an electrolysis unit that produces H2 and O2 gases to optimize the diesel fuel burn, resulting in a 6-19% increase in fuel economy and a 50%+ reduction in emissions. Founded in 2004, dynaCERT has spent the last 16 years developing their patented technology and has only recently begun to commercialize it on a large scale. dynaCERT’s technology can be used in diesel engines in on-road vehicles, reefer trailers, off-road construction, power generation, mining and forestry equipment, marine vessels, heavy equipment, and railroad locomotives. dynaCERT’s HydraGEN™ unit installed on a semi to reduce emissions and boost efficiency
Source: Company investor presentation dynaCERT recently completed an oversubscribed equity raising at C$0.68 (included a half warrant per share raised, exercise price of $1.00 for a period of 24 months). Demand was such that the raise was upsized to $8,367,400. The funds will be used to finance raw materials and manufacturing and assembly costs to create and deliver finished goods as well as for working capital and general corporate purposes. Five major firms in the Canadian financial community participated in dynaCERT’s over-subscribed, over-night-marketed, equity financing. dynaCERT receives two stock market exchange upgrades in two months dynaCERT now trades on a market cap of C$218m. As a result of their success dynaCERT has recently been upgraded on not one,
but two exchanges. In July dynaCERT was upgraded from the TSX
Venture Exchange (TSXV) to the main board TSX in Canada. This
follows their June upgrade to the OTCQX from the OTCQB Venture
Market in the USA.
Commenting on the US upgrade, the company said:
“The OTCQX Market is designed for established, investor-
focused U.S. and international companies. To qualify for
OTCQX, companies must meet high financial standards, follow
best practice corporate governance, and demonstrate compliance
with applicable securities laws. Graduating to the OTCQX
Market from the OTCQB Market marks an important milestone for
companies, enabling them to demonstrate their qualifications
and build visibility among U.S. investors.”
Moving forward quickly: dynaCERT re-opens and upgrades their
HydraGEN™ assembly plant on August 4, 2020
In a July 30, 2020 dynaCERT announced that their assembly line
had been retrofitted with a new semi-automated assembly
system, “to provide improved high standards instate-of-the-art
technical specifications” able to maintain a capacity of 100
units per day or 2000 units per month with a single 8-hour
shift per day. dynaCERT said that their new capacity “is
expected to be capable of tripled production of 6,000 units
per month using three shifts per day.”
dynaCERT has the following global partners/dealers:
MOSOLF is one of the largest truck servicing companies
in Europe with installations & 23 showrooms throughout
Europe. They have distribution channels in Germany,
France, Netherlands, Belgium, Luxembourg, Poland, Czech
Republic.
Farhi Holdings – A distributor for Brazil & Israel.
H2 Tek – Has a focus on mining with mining projects in:
Canada, USA, Peru, Chile, Brazil, Paraguay, Uruguay,
Argentina, Russia, Mongolia, and Australia.
KarbonKleen was awarded the exclusive dealership rights
in the trucking industry in the USA until December 31,
2024 (subject to certain quotas of a minimum of 150,000
HydraGEN Technology units over a little more than 3
years). On May 9, 2020, it was announced that
KarbonKleen achieved a purchase order for 3,000
HydraGEN™ Technology units. KarbonKleen also has
financing for a Mexico assembly with an MOU for
1,000,000 units.
dynaCERT’s sales and revenue now have the ability to rise
rapidly boosted by added cash reserves, their upgraded
production facility, and a growing sales pipeline from their
large and growing network of dealers. dynaCERT now has ~40
dealers around the world selling their products to small and
large truck owners, fleets, and government organisations that
use diesel engines. With a billion diesel engines in the
world, dynaCERT’s green emission technology is in big demand.
Last week dynaCERT expressed that unlike many industries, they
were well positioned for growth even in these challenging
times:
“The Company has re-emerged from the global COVID-19 economic
slowdown with a cleaner and stronger balance sheet, having
more than adequate cash reserves, a very strong balance sheet
with approximately $18,000,000 in cash and virtually no
significant debt, a better Assembly Plant, an improved R&D
facility, significant Product improvements and a continued
backlog of previously announced purchase orders. The Sales
Department of the Company continues to maintain existing
dealer relationships and has added new dealers where global
marketing continues to be active.”
Added to this was a note that the Company’s products can now
be offered to numerous markets in Dubai and other parts of the
UAE and the Middle East.
Strong growth in dynaCERT’s revenue
Source: Yahoo Finance Closing remarks dynaCERT is making all the right moves in leveraging the increasing demand to reduce diesel emissions and to improve fuel economy. The Company is rapidly growing their distribution networks and achieving impressive sales, increasing revenues, successfully raising over C$8m in an oversubscribed/overnight equity raise, recently upgraded by two stock exchanges, and have upgraded their assembly plant to meet demand (full capacity is now a potential 6,000 units/month). Even legendary mining investor Eric Sprott is onboard and owns a 8.66% share of the Company. The trend is becoming very clear that dynaCERT is on track to become a much larger company as the demand for their emissions reducing technology is enormous. As economies of scale kick in so should profits. For investors, dynaCERT is still looking reasonably priced assuming the forecast future revenues are achieved.
Tesla set to lead this
decade’s renewable energy and
electric vehicle boom
Renewable energy and electric vehicles (EVs) are set to be
massive macro trends this decade. A raft of Government
support, combined with massive cost reductions, will propel
both sectors higher. In most locations globally solar is now
the cheapest form of electricity production (followed by
wind), and from about 2023 electric vehicles will be cheaper
to buy than conventional cars. Hundreds of millions of people
globally will make the move to solar and wind power, combined
with EVs simply because it will be the cheapest way to create
energy and to commute.
EV, solar, and wind stocks are already surging in anticipation
of this at least decade long boom as shown in the chart below.
Just take a look at these sizzling returns so far in 2020.
This is just the beginning of what lies ahead.
Tesla (NASDAQ: TSLA) – Up 258%
BYD Co. (HK: 1211) – Up 89%
SolarEdge Technologies Inc. (NASDAQ: SEDG) – Up 86%
Enphase Energy Inc. (NASDAQ: ENPH) – Up 133%
Vestas Wind Systems (GR: VWS) – Up 32%
2020 YTD returns for some leading EV, solar, and wind stocks
Source: Yahoo Finance
Government support for renewable energy and EVs announced in
July 2020
July 21, 2020 – The EU announced the biggest green
stimulus in history with a 500 billion Euros (US$572
billion) climate change plan as part of a 1.8 trillion
Euros stimulus plan over 7 years.
July 14, 2020 – In the USA, Joe Biden unveiled a US$2
trillion green infrastructure and jobs plan over 4
years, if elected. The plan aims for the U.S. to have a
carbon pollution-free power sector by 2035. The plan
includes US investments in new infrastructure, public
transit, clean electricity, the electric vehicle
industry (EV and battery production), buildings and
housing, and agriculture. Also to boost fuel economy
standards which encourages car makers to switch to EVs.
July 7, 2020 – The UK announced a GBP 3 billion ‘green’
plan to focus on energy efficiency and re-skilling for
‘green jobs’, which includes a housing retrofit scheme.
The UK Gov. already supports EVs.
Whilst the Government initiatives will help, the private
sector is also rapidly moving towards supporting renewable
energy. Global investment in new renewables capacity rose 5%
in H1 2020, despite the chaos of COVID-19. Offshore wind was
the star performer with $35 billion of new financing in H1
2020, up 319% YoY. This bodes well for the leading wind turbine manufacturers. Regarding electric vehicles, sales have been picking up rapidly and outperforming regular vehicles in terms of gaining market share, especially in Europe and China. For example, for Europe in June 2020, conventional car market sales fell 24% YoY, whereas electric car sales rose 95%. Electric car sales in Europe are surging and in June made up 8.2% market share. Germany has led the way where conventional car sales fell 32% but electric car sales rose a staggering 274%, growing to reach 8.6% market share in June 2020. EV sales forecast to really take off after 2022 as affordability kicks in Source BloombergNEF 2020 forecast for annual electric vehicle sales are:
10% share by 2025 (~9 million pa)
28% share by 2030 (~24 million pa)
58% share by 2040 (~54 million pa)
Investors would be wise to review some of the leading
companies for each of the three boom areas:
Solar – Tesla, SolarEdge Technologies Inc., Enphase Energy
Inc., First Solar, Inc. (NASDAQ: FSLR).
Wind – Vestas Wind Systems, Siemans, GE Wind/General Electric
(GE), Siemans AG (GR:SIE | OTC: SIEGY), Xinjiang Goldwind
Science & Technology Co. (HK:2208).
Electric Vehicles – Tesla, BMW, Volkswagen, BYD Co.
Investors could also look at some niche players that lead in
their area. Here are some examples.
dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF) – Emissions
reductions, and greater fuel efficiency.
Exro Technologies Inc. (CSE: XRO | OTCQB: EXROF) –
Making electric engines more efficient (like gears in a
car).
You can read more at InvestorIntel’s Cleantech coverage here.
Finally the other area to benefit will be the suppliers of
critical materials, especially the EV metal miners, the rare
earth miners, and the lightweight materials companies. Some
names we follow include Nano One Materials Corp. (TSXV: NNO),
Neo Performance Materials Inc. (TSX: NEO), Appia Energy Corp.
(CSE: API | OTCQB: APAAF), Avalon Advanced Materials Inc.
(TSX: AVL | OTCQB: AVLNF), Scandium International Mining Corp.
(TSX: SCY), Imperial Mining Group Ltd. (TSXV: IPG), and ZEN
Graphene Solutions Ltd. (TSXV: ZEN). You can review
InvestorIntel’s coverage on this sector here.
Closing remarks
The renewable energy and EV booms have already begun but are
still in the very early stages of what will be at least a
decade long boom. The opportunity for investors is enormous as
we have already started to see with Tesla as well as several
other EV, solar and wind stocks so far in 2020.
Picking the winners of any disruption is never easy, but a
good start is to go with the existing winners, and to
diversify across a few sectors and stocks. The 2020s decade
will see several disruptions combining as we see with solar,
wind, EVs, and energy storage. Later this decade we will
likely see a boom in Transport as a Service (TaaS), autonomous
vehicles, and even affordable point-to-point space travel.
Further reading
A look at some combined disruptions for the 2020s –
Searching for the next Amazon or Tesla
The Tesla led electric
vehicle boom will lead to a
tsunami of demand for the EV
metal miners
The recent electric vehicle (EV) stock prices surge is telling
a story. The story is one of change. The change is that
electric vehicles are coming much sooner than many think.
While EV manufacturer stocks have surged, battery
manufacturers have done well, the EV metal miners are yet to
jump. This presents one of the biggest investment
opportunities of the 2020s decade, as a tsunami of demand hitsthe EV metal miners. Tesla’s (NASDAQ: TSLA) stock is up over 8 fold the past 14 months (up 492% the past 1 year) and is now the world’s largest car company by market cap. Tesla is rapidly gaining market share and is severely production constrained, as shown by their over 650,000 Cybertruck orders, not to mention a backlog of orders for Model Y, Roadster 2 and Semi. In fact it was reported yesterday: “Later this year, we (Tesla) will be building three factories on three continents simultaneously.” This followed the Tesla Q2 earnings release with Tesla now achieving 4 quarters of consecutive profitability making them now eligible to join the S&P500, a move that would typically see a surge of Index funds buying the stock. Meanwhile other pure EV plays are also booming. Nikola Corporation (NASDAQ: NKLA) is up 285% in the past year and NIO Inc. (NYSE: NIO) is up 250%. Will Fisker (NYSE: SPAQ) be next? Lithium-ion battery megafactories are being built as fast as they can to meet the surging battery demand. There is currently over 115 Li-ion battery megafactories either built or in planning until 2029. This equates to enough capacity to make 39 million EVs per annum by 2029. This is a massive increase on the 2.2 million electric cars sold worldwide last year. As a result, shares of the leading battery manufacturers are flying higher. LG Chem is 57% higher the past year and Chinese giant Contemporary Amperex Technology Co., Limited (“CATL”) is 174% higher over the past year. The 2017 boom in EV metals was merely the entree. What is coming this decade is so much bigger. Nickel sulphate battery demand is set to lead the pack with a staggering 14x increase in demand from 2019 to 2030. Aluminum, phosphorous, and iron will also be needed to meet the EV production surge. Copper
demand for EVs is forecast to surge 10x due to its use in
electric motors, wiring, and charging infrastructure. Finally
the other battery metals are all set for a surge in demand.
These can perform the best as they are often smaller markets
with supply constraints as most investors know with cobalt in
particular highly reliant on the volatile and corrupt DRC.
Graphite – A 10x increase in battery demand from 2019 to
2030.
Lithium – A 9x increase in battery demand from 2019 to
2030.
Cobalt – A 3x increase in battery demand from 2019 to
2030.
Manganese – A 3x increase in battery demand from 2019 to
2030.
Note: Rare earths will also see a surge in demand as they are
needed for powerful magnets in EV motors and wind turbines.
Bloomberg forecasts a tsunami of demand coming for EV battery
metals this decadeWhen have you ever heard of a car manufacturer publically saying this? Elon Musk’s plea yesterday for mining companies is quoted below: “Please mine more nickel……Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.” Closing remarks The EV boom is about to take off as EV prices become purchase price competitive with conventional cars by ~2022. The battery factory build out is well underway. What is lacking is investment into the EV miners to supply what will be the much needed raw materials, hence Elon Musk’s plea to miners. Many investors don’t understand to bring on a new mine to full production can take 5-10 years, compared to 1-2 years for an EV or battery factory. EV metals supply constraints will be the biggest obstacle that the EV boom will face this next decade. For investors the opportunity is now clearer than ever. Buy EV metal miners with quality assets in safe jurisdictions and with ability to scale rapidly to meet surging demand. While current producers are the safest and preferred way, the near term junior producers (developers) can offer tremendous returns, albeit with higher risk. —————————– Disclaimer: The InvestorIntel Sr Editor Matthew Bohlsen currently owns shares in Tesla. The information in this article is general in nature and should not be relied upon as personal financial advice. For more information, contact Tracy Weslosky at info@investorintel.com.
Surge in electric vehicle sales, has investors eyeing Exro Technologies With the electric vehicle (EV) boom picking up pace recently investors are looking at EV related stocks that can benefit from the forecast surge in electric vehicle sales. Below I discuss a unique EV technology company that may well be at the center of the boom. BloombergNEF 2020 forecast for annual electric vehicle sales give investors an idea of the tsunami that is on the way. BNEF forecasts annual electric car sales to rise from 2.2 million in 2019 (2.5% market share) to ~9 million by 2025 (10% share), 24 million by 2030 (28% share), and to a massive 54 million by 2040 (58% share). Added to this will be hundreds of millions of combined sales when including e-bikes, e-buses, e-semis, e- boats, e-trains, and some e-planes. The opportunity is enormous as shown in the chart below. Global electric-car revolution set to take off – BNEF forecast
Source
Exro Technologies Inc. (CSE: XRO | OTCQB: EXROF) is a software
design technology and smart energy company that creates an
electric program module that uses Artificial Intelligence to
make electric motors function better. The module integrates
into the power electronics adjusting the output of the
electric motor when needed, just like gears in a conventional
car.
Exro’s patented technology allows for multiple power settings
in a single motor. This helps maximize the motors performance
in terms of output and efficiency, thereby boosting a motors
output and thereby performance and range. The technology
enables 2 separate torque profiles within a single motor,
hence the comparison with ‘gears’ on a conventional car. All
this is done using a software module.
Exro’s coil driver technology – ‘Software with hardware
solutions’Following a string of new partnerships across a range of
different types of EVs over the past 2 years, Exro has
recently succeeded again with a partnership to enhance
electric powertrain technology for heavy-duty trucks and
delivery vehicles. The partnership is with Australia’s SEA
Electric Pty Ltd. SEA Electric is recognized as a global
leader in the electrification of commercial vehicles.
The news release states: “SEA Electric products are now
deployed in 5 countries, with collectively more than 1.6
million kms (1 million miles) of independently OEM tested and
in-service operation, making it widely recognised as the
market leader in the electrification of commercial vehicles.”
Prior to this latest success, Exro has also achieved the
following partnerships:
Electric motorcycles and bikes – In June 2020 Exro
announced a collaboration agreement (the “Agreement”)
with Zero Motorcycles (“Zero”) to evaluate Exro’s
patented coil drive technology using Zero’s SR/S
powertrain platform. Zero are a big name in electricmotorbikes. Last year in December, Exro partnered with
Motorino Electric. Exro’s engineered technology provided
a torque and acceleration increase of 25% for the
Motorino e-bike.
Electric boats – Exro has a pilot project running with
Templar Marine’s water taxis. The marine sector is a
multi-billion dollar industry that can stand to benefit
enormously from Exro’s technology as they increasingly
switch across to electric motors for a cleaner
environment.
Electric snow mobiles – Exro has partnered with Aurora
Powertrains to improve the Aurora’s e-sled all-electric
snowmobile.
Electric motors/generators – Exro has contracts with
Potencia Industrial who design and manufacture special
application, high efficiency, electrical motors and
generators. One of their projects involves converting
internal combustion engines in Mexico City’s taxis to
electric motors, as part of a city initiative to green
the city’s 250,000 taxi fleet. Exro jointly works to
integrate its hardware and software technology into
Potencia’s motor drives.
Electric farm equipment – On April 28, 2020, Exro
announced it has signed a collaboration and supply
agreement with Clean Seed Capital Group Ltd. (TSXV: CSX)
to integrate Exro’s technology into Clean Seed’s high-
tech agricultural seeder and planter platforms,
advancing the electrification of the world’s heavy-farm
equipment.
Exro Technologies growing list of partnersSource: Exro Technologies Company presentation Exro states: “Exro is set to close on 8 strategic partnerships and licencing agreements in 2020 that will position it for high volume manufacturing in the future. Currently, Exro has capacity for a low volume of manufacturing projects…..The Company’s commercialization and licensing strategy is centered around its Partner Development Phase, which incorporates partnerships with leading innovative motor companies in the industry.” Exro recently raised C$8 million of new capital at C$0.70 per share (plus a warrant exercisable at C$0.90). The capital will be used for further research and development of the Company’s coil switching technology for commercialization in the mobility segment including micro, light and commercial electric vehicle programs; marketing; capital investments and general working capital requirements. Closing remarks Exro Technologies has a tremendous opportunity ahead boosted by the impending EV boom led by Tesla. BNEF forecasts annual passenger electric sales to increase to 24 million by 2030,
which would be a ~11 fold increase on 2019 sales. What’s even better for Exro is that they focus on improving the electric motor output and performance, so their technology is applicable across the entire range of EVs that will be coming. Exro already has numerous agreements and contracts in place in electric motorcycles & bikes, electric boats, electric snow mobiles, electric motors/generators (being used for electric cars including e-taxis), electric farm equipment, and now electric heavy-duty trucks and delivery vehicles. As these partnerships mature, investors can reasonably expect Exro’s revenues to rapidly increase. Their soon to open Calgary Innovation Centre should also boost future partnerships and sales. Exro is now fully funded following an C$8 million raise, so things can really speed up from here towards mass commercialization and revenues across all of the above sectors. Exro is still trading cheaply given their massive potential with a market cap of just C$74 million. Stay tuned to Exro Technologies Inc. Dan Blondal on Nano One’s breakthrough in lithium-ion cathode materials and the ‘million mile battery’ “The idea of a single crystal cathode has been around for a while but the conventional methods for making them are very expensive. You want to spend as little time in the furnace as possible and we have developed a way to do that. Our crystals
form very readily in the furnace and they self coat in the furnace so you don’t have to have a secondary coating process. We have simplified the process. It is less complex and because the crystals form quickly we get an inexpensive way of making them that doesn’t have the downside of spending too long in the furnace.” States Dan Blondal, CEO, Director & Founder of Nano One Materials Corp. (TSXV: NNO), in an interview with InvestorIntel’s Tracy Weslosky. Dan went on to say that even with single crystal there is degradation but if you coat that single crystal the cathode material lasts four times longer. Dan further added, “by making the material more durable you can get many more charges out of it. The electric battery that goes into a car is somewhat restricted by the durability of the materials. If the material is not very durable then you have to make the battery a bit bigger. A more durable battery allows you to either drive a million miles which is important for taxi drivers, buses and utilities, or charge is much faster because as the battery is more durable it can take more aggressive charge or drive a little bit further everyday.” To access the complete interview, click here Disclaimer: Nano One Materials Corp. is an advertorial member of InvestorIntel Corp. A breakthrough in longer lasting lithium-ion cathode
materials brings ‘the million mile battery’ dream closer to reality The biggest new trend in the electric vehicle (EV) and battery industry right now is ‘the million mile battery’. The significance for the industry is huge. Imagine owning an electric car that can last for one million miles, or 1.6 million kilometers. This is a lifespan several fold longer than what current cars can offer. Owners will no longer need to worry about replacing their EV battery after 8-10 years. Even bigger is that fleet owners can own just one EV and run it for over 1 million miles. The taxi and trucking industry will be lining up for million mile EVs as it would be economic suicide not to own one. The EV industry is set to celebrate the breakthrough of longer lasting more durable cathodes that lead to better batteries capable of fast charging and a million miles lifetime Nano One Materials Corp. (TSXV: NNO) (NNOMF) has just announced a breakthrough in ‘longer lasting’ lithium-ion cathode materials. The Company has developed a coated single nanocrystal cathode material which provides protection against undesirable side reactions and the stresses of repeated charge and discharge cycling. Nano One’s patented One-Pot process combines all input components – lithium, metals, additives and coatings – in a single reaction to produce a precursor that, when dried and fired, forms quickly into a single crystal cathode material simultaneously with its protective coating. Nano One’s patented method to produce a single crystal cathode material with a protective coating
Source Dr. Stephen Campbell, Chief Technology Officer of Nano One Materials Corp. stated: “We are focused on optimizing this for NMC811 and I am pleased to present recent results that show how protective coatings on a robust crystal structure can make cathode powders more durable and longer lasting. Increased durability is critical in enabling extended range, faster charging and even million mile batteries for electric vehicles……By forming protective coatings on individual nanocrystals, Nano One eliminates process steps and is engineering new materials with enhanced durability for various applications including electric vehicles. These are positive results and we are optimizing the materials for third party evaluation on the path to commercializing this technology.” The issues of range, charging times, and battery longevity are
all critical to electric vehicles. This highly significant breakthrough, along with others, will lead to longer range, fast charging with less damage, and million mile batteries for EVs. The technology is really game changing in so many ways and should help pave the way for wider spread adoption of EVs in future years, especially for fleet operators such as taxis, buses, trucks, and other EVs that require heavy use. Nano One is already very well partnered into the EV/battery supply chain via partnerships with industry giants such as Volkswagen, Pulead, Saint-Gobain and other undisclosed global automotive interests. Added to this recent raisings and government support means Nano One has about $16 million of cash to further their patents, research and business plans & co-development activities. Cathode manufacturers can enjoy increased margins even after paying Nano One a royalty Source
Closing remarks Nano One is leading the cathode industry with innovative and critical technological breakthroughs to make batteries better. The battery cathode market is forecast to be worth $23 billion in revenues by 2025, and Nano One’s goal is to achieve up to $1 billion in licensing fees revenue for their patented cathode technologies. Given their progress so far that is looking like a highly achievable goal. Nano One also works on the development of processing technology for the production of nano-structured materials. The Company is focused on building a portfolio of intellectual property and technology know-how for applications in markets that include energy storage, specialty ceramics, pharmaceutical, semiconductors, aerospace, dental, catalysts, and communications. On a current market cap of only C$110 million it is not too late for investors to get onboard. These are truly very exciting times for Nano One, and for the EV/battery industry as a whole. The big winner will also be the consumers of fast charging EVs with batteries that can charge faster and last a million miles or more. I can’t wait to buy one myself. [Publisher’s Note: Special thanks for the rights to publish the above artwork from Brendon Grunewald of the Polar Conservation Organisation] Exro stock has powered 177%
higher YTD, as investors see the potential I last wrote on Exro Technologies Inc. (CSE: XRO | OTCQB: EXROF) here on InvestorIntel only 6 weeks ago, and I hope readers got onboard the stock. That is because the stock has since risen from C$0.465 to C$0.93 for an impressive 100% gain, in just 6 weeks. But wait, there’s more! Exro Technologies stock price in 2020 has risen from C$0.335 to C$0.93 for a staggering YTD gain of 177%, all while COVID-19 disruptions have caused many small stocks to fall. Investors who read the November 2019 Exro article and bought Exro Technologies at C$0.275 would be sitting on an incredible 238% gain. Exro Technologies stock price is up a staggering 177% so far in 2020 The closing remarks of my May 1, 2020 InvestorIntel article stated: “Exro Technologies is a small company going places. Their
technology fills an enormous niche demand, especially in the
growing world of better electric motors, notably for EVs. The
momentum of contracts in multiple sectors related to electric
motors and the new innovation center opening soon will surely
boost awareness and further contracts. With a market cap of
just C$35 million, investors should not wait too long.”
Indeed I am guilty of not focusing to buy Exro Technologies. I
believed in the story but never made time to buy the stock.
But the good news is that the EV boom is only just beginning
and any price pullbacks should be a great opportunity to buy
into this exciting innovative company.
Exro Technologies Inc. is a software design company that
creates an electric program module, effectively a computer
chip, which communicates directly with an electric motor and
powertrain. The module uses a machine learning algorithm that
integrates into the power electronics and essentially acts as
the ‘brains’ of the system, adjusting the output of the
electric motor when needed. Or in layman’s terms the module
acts as the gears for the EV. This is needed to optimize the
performance of an electric motor’s output, similar to how
gears work in a conventional vehicle.
Exro has been rapidly gaining industry acceptance. This will
only increase with their soon to open Calgary Innovation
Centre, where Exro can demonstrate their technology directly
to potential customers.
Exro Technologies is leading an ‘intelligent revolution’, here
are some contracts won by Exro Technologies:
Electric boats – Exro has a pilot project running with
Templar Marine’s water taxis. The marine sector is a
multi-billion dollar industry that can stand to benefit
enormously from Exro’s technology as they increasing
switch across to electric motors for a cleaner
environment.Electric bikes – Exro has partnered with Motorino
Electric. Exro’s engineered technology provided a torque
and acceleration increase of 25% for the Motorino e-
bike. Motorino is now performing extensive field tests
on the Exro-enhanced e-bike to confirm Exro’s
preliminary results. Josh Sobil, Chief Commercial
Officer of Exro, stated: “Our goal is to revolutionize
the performance of electric motors around the world with
Exro: To make them operate faster, stronger and last
longer.”
Snow mobiles – Exro has partnered with Aurora
Powertrains to improve the Aurora’s e-sled all-electric
snowmobile.
Electric motors/generators – Exro has contracts with
Potencia Industrial who design and manufacture special
application, high efficiency, electrical motors and
generators. One of their projects involves converting
internal combustion engines in Mexico City’s taxis to
electric motors, as part of a city initiative to green
the city’s 250,000 taxi fleet. Exro jointly works to
integrate its hardware and software technology into
Potencia’s motor drives.
Electric farm equipment – On April 28, 2020, Exro
announced it has signed a collaboration and supply
agreement with Clean Seed Capital Group Ltd. (TSX-V:
CSX) to integrate Exro’s technology into Clean Seed’s
high-tech agricultural seeder and planter platforms,
advancing the electrification of the world’s heavy-farm
equipment.
In a recent exclusive InvestorIntel interview with Exro
Technologies CEO Sue Ozdemir stated:
“I think what we bring to the table that is really different
from anybody else is that we are looking at how we control
efficiency through the power electronics, but working with the
motor. We are looking at that complete system optimization. Bydoing that we have got this huge market that is interested in what we are doing. It doesn’t matter if you are into green technology or motors or power electronics. We are kind of covering all three of it.” As Exro grows the Company has been bringing on new expertise including ex Siemens engineer Josh Sobil in the role of Chief Commercial Officer. Near term catalysts for Exro will be the Potencia final testing and delivery to customers, including the first ‘proof of concept’ of Exro Technology in an electric vehicle. Beyond that Exro hopes to win further contracts from a number of clients that they are currently in discussions with. Closing remarks Once again investors should take note of this highly innovative company that is making tremendous progress in the world of optimizing the performance of electric motors. Just as regular cars need a gear box, EVs need a ‘software gearbox’. This is in essence what Exro Technologies provides. After a staggering 177% run up in the stock price investors could see if the stock cools off a bit. But with a growing suite of contracts, a new innovation center about to open, and a market cap of just C$77 million in the multi-billion dollar growth sector of EVs; once again I would not be waiting too long to buy. Of course this is not advice, but rather an information service, so investors should do their own research and due diligence. It will be most interesting to see where Exro Technologies goes from here in 2020.
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