Sharc International Systems Inc. (SHRC) is a company focused on using sewage as a source of renewable energy. We initiated coverage on April 27, 2017, with a more recent note on September 9, 2017. Since our last update, a number of releases have been issued.
Oct. 4 - Listed on OTC-QB exchange. 1.4M stock options at $0.44 for a 1 year to SHRC's employee.
Oct. 19 - Provides corporate update on transition. Installed 14 systems providing heating and cooling to over 5 million square feet focus on equipment sales and Heat Purchase Agreements ("HPA"). Scotland Scottish Water, has established five initial projects. Construction has commenced and completion is expected by Q3 2018. California Alliances with Prospect Silicon Valley and RENEW Energy Partners LLC. will be shortly announcing an update on Title 24 Testing and UL Certification, prerequisite for completing sale.
Oct. 22 - Honorable Mike Harcourt joins the Board. Also announced is the issuance of 0.3M stock options at $0.60 for a period of 1 year.
Oct. 26 - Licensing agreement with Environmental Technology Solutions Pty. Ltd. (ETS) of Australia commercialization of its Piranha and Sharc systems in Australia and New Zealand. Receive royalties and an undisclosed payment on the manufacturing of the Piranha and Sharc systems.
Oct. 31 - Announces newest PIRANHA™ system designed for multi-unit residential (50-200 units) and stand-alone commercial applications.
Nov. 7 - To ship Sharc System to DC Water by January 2018. First US Building install in the US.
Nov. 15 - Entered sales rep agreements with Midwest Machinery Co. and and Johnson Barrow Inc (WA, OR, BC).
Nov. 20 - Green Gown Best Newcomer Award for the work Borders College - SHARC and Scottish Water Horizons.
Nov. 29 - Q3 Earnings: Revenue $0.3M vs. $1M YoY. (9 months). Loss of $2.8M vs. $1.9M YoY. Cash on hand $1.2M
Dec. 1 - SHARC Wins Top Award at Scottish Green Energy Awards.
Mar. 9 - Environmental Technology Solutions (ETS) to Launch Australia’s First Piranha System in Australia and New Zealand. PO to supply one of Australia’s largest hotel operators, Meriton Property Services Pty Ltd (“Meriton Suites”), with one Piranha.
Mar. 13 - Introduces Mass Market MAKO System for residential market. The system is currently undergoing testing at a single detached home in Vancouver, British Columbia. Heating, Cooling, and Hot Water and meets LEEDS Canada Certifications. The MAKO can also be tied to a home’s solar electric system allowing families to gain energy independence with an off-grid system.
Mar. 20 - SHARC Energy Systems UK and Scottish Water Horizons Launch Joint Venture: Bandwidth Energy Ltd. (“Bandwidth”) to manage the installation and maintenance of a number of key green energy projects in the advanced stages of planning. Scottish Water Horizons will provide commercial funding for the projects, with SHARC providing the design, build and operational expertise for the green energy installations.
Mar. 23 - Entered Sales Representative Agreements with Highmark NY, LLC. for the Greater New York City Metro Area, effective immediately.
In the past six months, SHRC has made some notable progress. The Scottish Water Horizons project has won some awards and cemented further into a Joint Venture (JV) agreement (Bandwith). SHRC also made head ways into the Australian and US Market. In Australia, the agreement with ETS has already beard fruits within six months of initiation. In the US, three new representation agreements were initiated; Midwest Machinery, Johnson and Barrow (WA, OR), and Highmark, NY. In addition, the DC Water project seems to be on schedule. On the product development front, the New Piranha and Mako shows that the company intends to go after multi-dwelling and single dwelling units which is synergistic to it's commercial focus.
However, earnings are still lagging and SHRC continues to be in a loss position. While a brief update on the RENEW Energy Partners LLC and Prospect Silicon Valley was provided six months ago, none on the Beijing Ruibaoli were received. For the California Alliance, details on Title 24 Testing and UL Certification are still outstanding or have are yet to be communicated to the market.
In an interview with SmallCap-Investor.de (June 27, 2017), the CEO (Lynn Mueller) reported that he believed that shareholders would be pleased of the company results in the next 6-12 months. He claimed that much of the work on the Scotland project will be done within 3 to 9 months as the project needs to be completed within 18 months. In addition, he specified that no financing would be required, the company should be able to leverage existing contract against their need for credit. He also reminded shareholders that the contract in Scotland were "guaranteed" and he believed that the company had "turned the corner..."
Well, looking at the trading activity reveals that SHRC is still unable to capitalize on the recent progress. The options granted at $0.44 and $0.60 cents definitely are good incentive. However, SHRC is trading well below the 52 week high of $0.96 cents and closer to the 52 week low of $0.305. Though, SHRC has improved communications with shareholders, it still have to work to gain back credibility with the market. Specifically, the recent stock consolidation, and the lack of progress on the RENEW Energy Partners LLC project are a factor. Nonetheless, SHRC does have a proven technology and its CEO holds a few patents to his credits. Below is the forecast this remainder of the week, perhaps SHRC is coming (a)round the corner.
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