Green Equity - August 19, 2024
News about stocks involved in environmental markets.
Green Equity is a daily series dedicated to tracking emerging investment opportunities in environmental markets. Notable events include green investments, fundraising, M&A, and new public listings.
News From Public Companies
Kontrol Technologies (KNR) has been selected to deliver sustainability and net-zero emission solutions for multiple public sector buildings. The company plans to reorganize its building performance and engineering services under the "Efficiency Engineering" brand to streamline operations and reduce costs. Kontrol aims to grow through organic means and strategic acquisitions, mainly targeting companies with recurring revenues.
Altius Minerals (ALS) has renewed its Normal Course Issuer Bid (NCIB), allowing the company to repurchase up to 1,865,313 common shares, or about 4.01% of its outstanding shares, between August 22, 2024, and August 21, 2025. Under the current NCIB, Altius has repurchased 871,100 shares at an average price of $19.76. Altius has consistently maintained an active NCIB program since 2010.
Hyliion Holdings (HYLN) has signed a non-binding Memorandum of Understanding (MOU) with Jardine Engineering Corporation Limited (JEC) to explore deploying Hyliion's KARNO technology in power generation projects across Hong Kong, Macau, and other regions.
Electra Battery Materials (ELBM) has received a $20 million grant from the U.S. Department of Defense under the Defense Production Act to support the construction of North America's only cobalt sulfate refinery near Toronto. This facility, crucial for producing battery-grade materials for lithium-ion batteries, aims to reduce reliance on China, which currently dominates global cobalt production. The refinery, set to produce 6,500 tonnes of cobalt annually, has already secured significant commitments, including a deal with LG Energy Solution.
LanzaTech (LNZA) and LanzaJet have partnered with Wagner Sustainable Fuels to equip Wagner’s Brisbane Sustainable Aviation Fuel (SAF) Refinery with the CirculAir™ platform. This technology converts waste carbon and renewable power into SAF. Investments from The Boeing Company and the Queensland Government are supporting this project.
Price Targets & Reports
Alliance Global Partners lowered its price target for Electra Battery Materials (ELBM) from $1.50 to $1 but maintained a “Buy” rating on the stock. This adjustment follows Electra's Q2 results and an agreement with convertible noteholders to pay accrued interest in kind rather than cash, a move seen as crucial for preserving cash amidst capital constraints. While AGP acknowledges that cost overruns at the cobalt refinery and ongoing funding challenges may pressure the stock, they believe Electra is still positioned to become a key supplier of battery materials to North American markets once a funding package is secured.