EnerDynamic Hybrid Technologies (EHT.V) offers a number of products which combines solar, wind, and battery storage for pre-fabricated housing. We initiated coverage February 2017, with subsequent notes in August 2017, October 2017, and April 2018. Here's an update.
May 1 - Corporate Update: 1) Received certification of ENERTEC wall/roof panels manufactured in Ghana. 2) Completed Puerto Rico joint venture arrangement and received first order. 3) Completed Arizona joint venture. 4) Received Expert Preferred Vendor Status by De Sousa Costa International Inc. 5) Announced on patent protection (ENERTEC ultra-light solar panel), patent pending status granted.
May 2 - Announces Proposed Securities for Debt Transactions $1M via issuing 10M shares to five (5) creditors at $0.10/share - $0.15 cents warrant.
May 7 - Receives another order from Puerto Rico. This is the second order from the joint venture: CAT 5 Solar and Microgrids, LLC. ("CAT5").
May 14 - Updates on California Solar Initiative The U.S. residential solar market has increased more than six-fold to 10.4 gigawatts in the last five years. California Solar & Storage Association estimates that 20% of new home to include solar power.
June 11 - Announces Strategic Partnership with Financier Elevate Export Finance Corp. EHT can now provide its foreign customers with financing options that support its ENERTEC turn-key energy solutions products. Elevate, is a partner of the Canadian government's Export Development Canada ("EDC"), will offer EHT customers competitive rates, medium term loans of up to $10 million USD via a streamlined process.
June 28 - Corporate Update: Initiative in Ghana, Ivory Coast, USA (Net Zero Tiny Home), PWR Trailer, Tariff Exemptions discussed. Peel School Board assets expected end of July. PWR wagon demonstration and DIY shelter/storage unit also discussed.
Closing of School board asset sale is nearing completion. Documentary support for costing of all the rooftop solar systems are undergoing detailed financial analysis. Anticipated final cost review to be completed in early July with expected transaction closing by end of July.
July 17 - Provide an Update on California Solar Initiative with Custom Complex Structures - Net Zero Tiny House.
Also included is the completion of a non-brokered private placement of $1.6M which includes 33M units at a price of $0.05 per unit with warrant at $0.075 per share for a term of 36 months (the "Offering"). No finder's fee was paid in connection with this placement.
July 19 - Maple Leaf Holdings Announce Burkina Faso Housing Order to immediately start the construction of EHT ENERTEC housing to help satisfy the need to build up to 40,000 homes. EHT will target a rolling increase of 1,200 homes per year by late 2019.
Aug. 24 - EHT, CAT5 Solar and Microgrids Announce Strategic Partnership with Danosa Caribbean Inc (DCI). DCI does commercial roofing products throughout the Caribbean, will add CAT5 to their sales effort. EHT and CAT5 have started the required certifications on the ENERTEC housing solution to take advantage of the $18 Billion in US Government aid to build up to 120,000 homes in Puerto Rico.
Sep. 10 - Announces Contract to Build 100,000 Houses Unified Construction and Investments Limited ("UCI"), and in conjunction with the Government of Ghana and the Ministry of Works and Housing (Ghana), 100,000 affordable housing units in the country of Ghana. The final agreement, dated September 7, 2018, will see the units constructed over the next 10 years.
Similarly to the previous last six months, EHT.V has loss roughly half of its valuation. It has recently recovered but as yet to trade above $0.07 cents. Despite numerous announcements (Puerto Rico, California, Elevate Export Finance, Ivory Coast, Burkina Faso, Ghana), EHT.V stock price is stagnant. Again, the issues of contention remains the same.
Debt and Financing
Further re-negotiation of the debenture continues to have a negative effect on valuation. While the conversion from debt to equity is an achievement, additional rounds of financing activities were noted: May 14 ($0.085 cents - warrant $0.15 cents) and July 17 ($0.05 cents - warrant at $0.075 cents). Looking back it may have been evident that the May 14 announcement indicated possible subsequent financing needs which lead to the selling pressure to a 52 year low of $0.03 cents. However, the market was expecting an update.
Peel Asset Sale
Indeed, the sale closure of the Peel rooftops panels with Reliant First Nation Limited Partnership to a third party is still outstanding. The proceeds ($7M) is expected to have a significant impact on EHT.V's balance sheet. The original announcement is more than 2 years old (August 12, 2016). EHT.V has made multiple announcements on the matter and deadlines have come and gone.
There is no doubt that the revenue potential of EHT.V is large but the company needs to further clarify and/or settle the Peel Asset Sale with the market.
Once, that's complete and satisfactory, valuation will rise on credibility. For now, the wait is weighing on valuation.
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