Aduro Uplisting and Financials 11/2024
A review of Aduro's position as it uplists to the NasdaqCM.
Aduro Clean Technologies (ADUR), developer of novel plastic recycling technology, has now uplisted to the NasdaqCM.
In connection with that uplisting, Aduro is raising approximately US$4 million by issuing 941,177 shares at US$4.25 in its IPO. The funding round is expected to close tomorrow.
The hope is that uplisting to the NasdaqCM will make it easier for Aduro to raise funds and offers potential for higher access to institutional investors.
Additionally, the company recently released new interim financials and MD&A…
Let’s review.
Financials Review
As of August 31st, Aduro had nearly US$4.3 million in the bank. With this raise of an additional US$4 million, the company should be fully funded to build out its final plastic recycling pilot plant.
The Next Generation Process (NGP) unit is expected to recycle 5-10 tons of plastic waste per day and cost an estimated US$3.5 million to US$5 million. This pilot unit is set to be built in 2025, and Aduro is working on designing the system right now.
Issuing nearly 1 million shares in connection with the IPO raise, combined with the August 31st share count of 27,225,729, puts us at over 28 million shares outstanding.
On July 30th, TotalEnergies announced it was advancing in Aduro’s recycling customer engagement program. As you can see, this hasn’t brought in any additional revenues, at least not yet. We don’t know what the terms of their agreement are.
Revenues are expected to remain low until they reach commercialization in the 2026-2027 timeframe.
Expenses are generally rising, specifically R&D and G&A, as the company grows its employee count and pours more capital into furthering its technology. This is to be expected.
Outstanding stock options and warrants account for an additional nearly 4.7 million shares if they’re all exercised. Most are years out from expiring, though. Approximately 575,000 warrants (April 2023) are set to expire this year.
As the company has been in a blackout period in connection with the uplisting… there hasn’t been much news coming out of the company recently.
With the uplisting complete, I’m hoping we see some more news soon, but who knows.
We can expect volatility and potentially even some targeted shorting as the stock is moving onto a more liquid exchange with little revenues to speak of right now.
I’ve seen no signs to cause nervousness around the long-term vision of the company, though.
As far as we know, testing is ongoing with four unnamed multi-billion dollar firms. Shell and TotalEnergies are still involved as well. We’re just waiting for these partnerships to progress and a continuation of commercialization efforts.
Disclaimer: I’m long Aduro Clean Technologies. I hold an equity position that was acquired at an average share price of $2.25. I was not compensated by the company to create this post.
The owner of Green Investing is not a licensed investment professional. Nothing produced under the Green Investing brand should be construed as investment advice. My content is made for entertainment and educational purposes. Do your own research.
Quality analysis, as always. Thank you