With the growing trend towards green, sustainable initiatives we have identified four Canadian green tech stocks with the potential to profit from these trends
SmallCapPower | July 12, 2019: Climate change is an issue that many countries are starting to take more seriously. Agreements such as the Paris Accord, which to date has been ratified by 185 parties, are helping to initiate the change to a cleaner world. With about 72% of Generation Z in 2015 saying they are willing to pay more for products and services offered by companies committed to a positive environmental impact, green technology stocks have the potential to be lucrative for investors. Today we have uncovered four Canadian green tech stocks that investors should keep on their watch lists.
*Share prices as at close July 10, 2019, data obtained from S&P Capital IQ
SHARC International Systems Inc. (CSE:SHRC) – $0.15
Green Energy
SHARC International Systems is a “Green Energy” company specializing in heat extraction from wastewater for water heating and space conditioning, which results in increased carbon savings, contributing to reduced carbon emissions globally. The Company’s core focus is to considerably cut carbon emissions and offer the most cost-efficient technology, thereby trimming down current and future energy costs for its customers. Heat energy accounts for over 50% of all energy consumption in buildings, and by recycling this excess energy individuals and corporations can lower their energy expenses while reducing their carbon footprint. SHARC Technologies’ mandate is to achieve savings of one million tonnes of carbon emissions by 2025 to help reduce the global carbon footprint left from wasted heat water. On July 3, 2019, the Company announced the closing of its second tranche of private placement of convertible debenture units for gross proceeds of $550,000.
- Market Cap: $5.6 Million
- YTD Return: – 51.7%
- 30-Day Average Daily Volume (1,000): 87
- 90-Day Average Daily Volume (1,000s): 80
good natured Products Inc. (TSXV:GDNP) – $0.18
Bioplastics
good natured Products produces and distributes one of North America’s largest assortment of consumer products and packaging that is composed of the highest possible percentage of renewable, plant-based materials and no BPAs or additional chemical concerns. The Company has over 100 plant-based food packaging applications, 10 grades of bioplastic roll stock sheets and 30 home & business organizational products. On June 11, 2019, the Company announced the closing of US$10M financing from Business Development Bank of Canada. The financing will be given in three tranches: the first tranche will be for US$5M and is expected to be given to the Company upon receiving TSX Venture Exchange approval and related amendments to the Company’s outstanding convertible debentures. On May 28, 2019, the Company announced it had achieved record quarterly revenue, with Q1 FY19 increasing 84% to $2.1M compared to $1.1M during the same period in 2018.
- Market Cap: $17.5 Million
- YTD Return: 75.0%
- 30-Day Average Daily Volume (1,000): 262
- 90-Day Average Daily Volume (1,000s): 161
Pond Technologies Holdings Inc. (TSXV:POND) – $0.68
Green Energy
Pond Technologies has developed proprietary systems that allows it to convert CO2 into valuable products. The Company grows algae in large containers, which regulate the inflow of CO2 or nutrients with minimal manual supervision. After a few days the Company then harvests and processes the algae into marketable products. Algae can be used as a protein for animal feed and in nutraceuticals for human consumption. These systems can also be used for sensor-supported farming of terrestrial plants in greenhouses, or bioremediation of contaminated water.
- Market Cap: $15.4 Million
- YTD Return: – 15.0%
- 30-Day Average Daily Volume (1,000): 7
- 90-Day Average Daily Volume (1,000s): 13
Boralex Inc. (TSX:BLX) – $19.92
Renewable Energy
Boralex focuses on developing, building and operating renewable energy power facilities located in Canada, France, UK and U.S. The Company has experience in four power generation types: 1) wind; 2) hydroelectric; 3) thermal; and 4) solar. On June 13, 2019, the Company announced that three projects with a total of 68.2 MW, which it submitted during the third period of the national call for tenders that was held by the Ministry for the Ecological and Inclusive Transition of France, have been selected: 1) Bois des Fontaines (25.2 MW); 2) Helfaut (20 MW); and 3) the Caumont Chériennes (23 MW) wind projects. On June 6, 2019, the Company announced the commercial commissioning of the 10MW installed capacity Catesis wind farm in France’s Nord department. This will increase Boralex’s capacity to 951 MW in France a total of 1,987 MW worldwide.
- Market Cap: $1,777.9 Million
- YTD Return: 18.8%
- 30-Day Average Daily Volume (1,000): 243
- 90-Day Average Daily Volume (1,000s): 224
Ubika Research/SmallCapPower has received compensation from Sharc International Systems Inc.(CSE:SHRC) to provide analyst research coverage. For full disclosure please visit here >>
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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