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Independent Reviews for Venture Investors

CBLU.V - Expedite it.


Clear Blue Technologies Intl Inc. (CBLU.V) delivers clean, managed, “wireless power” to meet the need for reliable, low-cost, solar and hybrid power for lighting, telecom, security, IoT devices, and other mission-critical systems.


The company offers a number of innovative products: Solar Controller, Solar and Wind Controller, Telecom Power Pack, Illuminence Cloud Control, Nano-Grid Power Pack, and IOT solutions. Clear Blue has thousands of systems under management across 37 countries, including the U.S. and Canada.


Previous coverage was issued on May 2019, February 2020, September 2020, May 2021, and February 2022.


News releases


Feb. 16 - Launches New Illumient Smart Off-Grid Lighting Solutions to Meet Growing Customer Demand: Two new cost-effective, highly reliable off-grid lighting solutions are now available (The Illumient STRADA Series and the Illumient CAMMI Series) with two more planned for release in 2022. Illumient systems are differentiated in the market by Clear Blue’s Energy-as-a-Service (EaaS). With EaaS, issues can be anticipated, detected and diagnosed over the Internet, resulting in 70% lower maintenance costs, and a longer life than traditional solutions


Feb. 25 - Miriam Tuerk Earns a Report on Business Magazine Changemakers Award from The Globe and Mail: The award’s intent is to showcase the emerging leaders transforming business today. Miriam Tuerk is one of 50 winners.


Mar. 1 - Signs a Memorandum of Understanding with Expected Total Contract Value Exceeding $2 Million CAD: with iSAT Africa, an integrated communications services provider serving Africa and the Middle East. iSAT Africa has also selected Clear Blue as its preferred partner for Smart, Solar Off-Grid power.


The MOU also calls for Clear Blue to provide a minimum of 300 off-grid, remote power systems for satellite and cell phone services in 4 countries in Africa, to be ordered by the end of Q1 2023. This order is worth an initial amount of C$2 million and has an estimated 5-year Life-Time Contract Value, which includes capacity upgrades and ongoing service management by Clear Blue, of C$3 million. The first 30 systems will ship in Q1 2022 and the remainder of the project is subject to iSAT successfully concluding financing for the remaining rollout.


Mar. 3 - Selected by Global Communications Extension Services Ltd. as their Preferred Partner to Supply Smart Off-Grid Power for Telecommunications: 120 Sites scheduled in 2022 - Nigeria Project to support 9Mobile and other MNOs with a 5-year target of 1,060 sites in GCES business plan. A memorandum of understanding (“MOU”), signed on March 2, 2022, with Global Communications Extension Services (“GCES”). The MOU also establishes Clear Blue as GCES’ preferred power provider over the next five years, starting on March 2, 2022 and ending on March 2, 2027.


Under the terms, Clear Blue will deliver approximately 120 Nano-Grid Smart Off-Grid power systems in 2022 with the remaining systems spread across the following four years. The first systems will ship in Q2 of 2022, across Nigeria.


Mar. 22 - Launches Smart Pico-Grid Product, Entering New Satellite Wi-Fi and IoT Markets; As a cost-effective, fully managed, and uniquely designed power product that’s specifically designed for the ultra-low-power requirements of satellite Wi-Fi and IoT applications, Pico-Grid establishes new verticals for Clear Blue.


The Company has already announced partnerships with two satellite service providers to drive connectivity services in Africa and this new product will enable additional partnerships and contracts with satellite service providers.


As every Pico-Grid product comes with Clear Blue’s ongoing EaaS service, Clear Blue eliminates the need for customers to become power management experts. Clear Blue has established a first-mover advantage in its markets and a clear market leadership position with this technology with more than 8 million operating days and 9,000 global smart off-grid controllers deployed in 37 countries. The Pico-Grid product begins shipping Q2, 2022.


Mar. 29 - Announces Record Revenue in F2021 and Guides for Strong Growth in F2022: FY2022 Financial Guidance and Outlook: Forward 2022 Fiscal Year guidance that revenues will be a minimum of $10 million for Fiscal 2022.


Apr. 12 - Selected to Provide Cloud-based, Smart Off-Grid Power Solutions to Viasat’s Community Internet Sites:

Clear Blue’s Nano-Grid and new Pico-Grid power products to provide reliable, low-cost, clean energy solutions and management services at Viasat’s satellite-based Community Internet locations in Nigeria.


Apr. 29 - Announces Closing of Initial Tranche of Unit Offering: Closed an initial tranche of a non-brokered unit offering (the “Offering”) for gross proceeds of approximately $989,834. The initial closing of the Offering resulted in the issuance of 5,822,554 units at C$0.17 (Warrants $0.22 cents). Proceeds from the Offering are anticipated to be used for sales, marketing, research and development, and working capital requirements.


May 30 - Announces Q1 2022 Financial Results:While we have not lost any significant contracts, certain large contracts we were expecting to close in Q1 2022 have transitioned into smaller, phased roll outs. Taking the current macro market pressures into consideration, we are comfortable with revenue guidance of around $10M..


Also announced closing of the second tranche of a non-brokered unit offering. Tranche 1 of this Unit Offering was completed and announced on April 29, 2022, for $989,834. Together the two Tranches totaled $1,643,277.


June 7 - Recognized in Corporate Knights' Inaugural Future 50:


June 28 - Announces $4-Million Government of Canada Financing: through the Federal Economic Development Agency for Southern Ontario (“FedDev Ontario”). This funding will allow Clear Blue to expand its production capacity, support the commercialization of its new Pico-Grid technology, and enhance its sales and marketing strategies.


The financing will be drawn upon over a 21-month period until March 2024. Repayment begins in 2025, continues to 2031, and carries 0% interest. The Company intends to use the proceeds for sales and business development, to expand its production capacity, and to support the commercialization of its new Pico-Grid technology.


June 30 - Announces Shares for Debt Transaction and Annual Incentive Compensation Awards: Settle aggregate indebtedness of $61,496 owing by the Company to the Creditors that will be converted into an aggregate of 439,255 common shares of the Company at a price per Common Share of $0.14 cents, thereby allowing the Company to preserve cash and improve its balance sheet. The Shares for Debt Transactions involving directors and officers of the Company will, in each case, constitute a "related party transaction" under Multilateral Instrument 61-101.


July 7 - Expands to Nigeria to Support Global Growth: To better capitalize on this market and support these growth initiatives locally. This expansion follows the opening of a satellite office in Nairobi, Kenya in 2020. The new Nigeria office will provide sales and business development and customer relationship management.


The Company is also pleased to announce the hiring of Mr. Adetunji Taiwo, Clear Blue Nigeria’s country manager.


Aug. 24 - Announces Q2 2022 Financial Results:


Sep. 6 - Avanti Communications Selects Clear Blue to Power eLearning Offering Across Sub-Saharan Africa: Clear Blue to be the exclusive off-grid power provider for Avanti’s eLearning services for 3,000-5,000 schools in Africa, with high volume rollouts expected from late 2023 through 2025.


Clear Blue’s Smart Off-Grid technology will also power the educational equipment and systems. With initial pilots beginning in Q4 2022, the rollout will continue from late 2023 through 2025.


Sep. 14 - Field Study Shows Smart Off-Grid Lowers Power Capex by 40% Over Solar Alternatives: The collaborative study with Meta Research and Mayu Telecomunicaciones (“Mayutel”) examined the effectiveness of Smart Off-Grid.


The results concluded that telecom sites powered by Clear Blue’s Smart Off-Grid power can deliver higher service levels at a 40% lower capital cost versus non-smart, solar off-grid power systems. This can result in an overall 10% reduction in the total telecom tower site costs.


Sep. 27 - Receives $5 Million Grant Funding from Sustainable Development Technology Canada (SDTC): Clear Blue Technologies is part of a cohort of six innovative Canadian companies who were selected to receive a cumulative $18.7 million in funding today, following a process that began at the beginning of 2022.


SDTC will release these funds to Clear Blue in equal installments over the next 3 years. Funding will allow Clear Blue to launch its recently announced Pico-Grid product line and accelerate the Company’s market leadership in smart analytics via the use of machine learning and artificial intelligence technologies. Pico-Grid, which was announced earlier in 2022, is expected to begin shipping in 2023.


Oct. 13 - Announces Proposed Amendments to Outstanding 10% Unsecured Convertible Debentures: i) Extending the maturity date of the Debentures from November 1, 2022, to November 1, 2024; ii) Increasing the interest rate under the Debentures from 10% to 12% per annum; and iii) Decreasing the exercise price of the common share purchase warrants forming part of the units issuable on conversion of the Debentures from $0.35 to $0.32 cents per common share; provided, however, that this amendment will not apply to Debentures held by insiders of the Company.


Nov 7 - Telia Cameroon Selects Clear Blue to Power Telecom Services for MTN: First order from Telia Cameroon (“Telia”) on October 18, 2022, for initial systems as part of its telecommunications service rollout in Cameroon for MTN.


Following successful pilot validation, the initial rollout of 50 systems is expected in early 2023. Clear Blue will supply its Nano-Grid Smart Off-Grid power solution and will be Telia Cameroon’s preferred Solar power provider.


These 50 sites have an estimated 5-year lifetime contract value of $1M CAD for Clear Blue.


Nov. 14 - Parallel Wireless Partnership Expands with Three Additional Orders for Smart Off-Grid Power: Corporate update on its projects with Parallel Wireless, first announced on June 23, 2021: i) Following a successful Phase 1 deployment of Clear Blue’s Smart Off-Grid power, two additional phases were procured and shipped in 2021 and 2022; ii) A fourth phase was awarded on November 9th, 2022 and is planned for deployment in 2023, which will bring the total number of sites to 147; iii) The 5-year lifetime contract value (all phases) is estimated over $4M CAD.


The majority of the project consists of large backhaul transmission and medium-sized cell tower systems. The project is entirely powered through either grid-solar hybrid systems or solar-only solutions.


Nov. 16 - Named One of Canada’s Clean Technology winners in Deloitte’s Technology Fast 50™ Program


Summary


Product Launch

Two product launches took place in the last nine months:


Two new Illuminent Smart Off-Grid Lighting: The Illumient STRADA Series and the Illumient CAMMI Series were announced in February 2022. At the time, the company reported that two more products were planned for release in 2022. As a reminder, Illumient systems are differentiated in the market by Clear Blue’s Energy-as-a-Service (EaaS)


In March 2022, the Smart Pico-Grid initiative was released: These products are specifically designed for the ultra-low-power requirements of satellite Wi-Fi and IoT applications in essence providing entry in these new markets.


Partners Update

Results from the three partnerships (Parrallel Wireless, Avanti Communications, & Facebook Research + Mayu Telecom) made in the previous note were delivered in this period. .


With Parallel Wireless (an Open RAN provider), an expansion on the original agreement (June 2021), was made in November 2022. Parallel provided three additional orders for Smart Off-Grid Power ($4M for 5 years; 147 sites)


With Avanti Communications (a Satellite Capacity Provider), an evolution from the original partnership (July 2021) was

delivered in September 2022. Clear Blue was selected to power an E-learning initiative in Africa (300-500 Schools) with a deployment scheduled in late 2023 to 2025.


As per initial release regarding Avanti: Within the next three to five years, the partnership is expected to deliver mobile network coverage to 400 million people that cannot access mobile broadband services.


With Facebook Research + Mayu Telecom on Project SEISMIC (Smart Energy Infrastructure for Mobile Internet Connectivity, August 2021), Clear Blue's aim to validate that telecom sites powered by smart off-grid power can yield significantly lower capital expenditures, site power consumption, minimize operating costs. Results delivered in September 2022, confirmed that Smart Off Grid lowers Power CapEx by 40% over other solar alternatives.


Engagements

In addition to the development of the partnerships. Four new engagements were announced in the last period.


An MOU with iSAT Africa ($2.0M over 5 years) for 300 off-grid, remote power systems for satellite and cell phone services in 4 countries in Africa was completed in March 2022. At the time, it was also indicated that Clear Blue was selected as a preferred partner for Off Grid power. Also mentioned was that the First 30 system shipped in Q1 2022.


Next, Global Communications Extension Services Ltd. (GCES) selected Clear Blue as their Preferred Partner to supply Smart Off-Grid Power for telecom services (March 2022). Overall, 120 site were scheduled for 2022 but a 5-year target of 1,060 sites with an anticipated initial shipment in Q2 2022 in Nigeria was scoped.


April 2022, Clear Blue reported that it had been selected to Provide Cloud-based, Smart Off-Grid Power Solutions to Viasat’s Community Internet Sites (Nano and Pico Grid). Recently, (November 2021), Telia Cameroon selected Clear Blue to Power Telecom Services for MTN. A $1M engagement for 5 years; 50 sites)


These four initiatives build on the previous engagement reported with NuRan Wireless and YahClick. The NuRAN engagement had an estimated value of $8M-$10M CAD over the next three years (roughly $2.5M per annum)


Appointments

As part of the expansion effort announced in July 2022, Clear Blue appointed Mr. Adetunji Taiwo as Country Head in Nigeria. Note the opening of the Nigeria office follows the creation of a head office in Nairobi, Kenya.


Financing

First, a Non-Brokered Private Placement was disclosed in April 2022. First tranche raised $0.98M consisting of 5.8M units at $0.17 cents (Warrant 0.22 cents). In May 2022, the financing closed for a combined total $1.64M.


October 2022, an amendment to Outstanding 10% Unsecured Convertible Debenture were filed. The maturity was extended to 2024, the interest rate was increased from 10 to 12%, and the exercise price lowered to $0.32 cents


Otherwise, in June 2022 a $4M (0% interest) Financing from Government of Canada (FedDev Ontario) was reported along with a Shares for Debt deal (0.06M). Finally, September 2022 a $5 Million Grant Funding from Sustainable Development Technology Canada (SDTC) was received.


Restricted Shared Units (RSU)

Restricted Shared Units were granted in June 2022.


Granted 1,664,148 restricted share units (RSU) to certain directors, officers, contractors, and senior executives of the Company in satisfaction of the Company’s short-term and long-term incentive goals. Each RSU entitles the holder to acquire one Common Share of the Company, or a cash payment equal to the equivalent of one Common Share on vesting, or a combination of both. Each such RSU bears a grant date of June 30, 2022. 1,164,148 RSUs will vest in full on June 30, 2023, and 500,000 RSUs will vest in full on January 2, 2024.


Back in September 2021, a grant of 1,239,053 RSUs was also made.


Earnings

Despite record revenues in FY2021 ($8.14M), the start to FY2022 has been very weak. YTD 2022 revenues are $2M in revenue which is 53% lower than have been reported in FY2022. At Q1 2022, Clear Blue issued a guidance of $10M revenue for FY 2022. At Q2 2022, this number has been revised down with a range ($5.5M - $9.5M) for FY2022. Due to supply chain issues and inflationary pressures larger project transitioned into smaller, phased roll outs.


Also worth a mention are the Net Losses numbers which are significantly higher than FY 2021.

YTD 2022 Bookings has been steady but unfortunately not growing from FY2021. Perhaps, Q3 2022 will be different.


Awards

A total of three awards were reported. In February 2022, Clear Blue's CEO earned the ROB Change Maker Award from the Globe and Mail. In June 2022, Clear Blue was recognized by Corporate Knights. Recently (November 2022), it was Named One of Canada’s Clean Technology winners in Deloitte’s Technology Fast 50™ Program.


In short

Thus far, Clear Blue (CBLU.V) is off to a slow start in FY 2022 but Q3 2022 earnings may change that story.


CBLU.V has continued to expand its eco-system of partners. Building on NuRan Wireless and YahClick, Clear Blue announced milestones with Parallel Wireless, Avanti Communication, and Facebook Research+ Mayu Telecom.


The company also announced new engagements with iSAT Africa, Global Communications Extension Services Ltd. (GCES), Viasat’s and Telia Cameroon for MTN. Overall, $7M in contract (over 5 years) have been reported.


In addition, Clear Blue has secured more than $9M in funding from the government ($4 FedDev Ontario; $5M from Sustainable Development Technology Canada (SDTC which suggest great potential.


However, recent financing has changed the warrant profile adding 10.1M between $0.17 and $0.22 cents.



Otherwise, the amount of Restricted Share Unit (RSU) granted by the company is something to watch for. A total of 1.6M were granted in FY2022 to date which surpassed FY2021 (1.2M). At issue, there is no set exercise price for these which does not seems to be in alignment with current shareholders (i.e. those who purchase at the open market).


Despite the numerous award earned, Clear Blue revenue trajectory remain unknown for FY 2022. Thus far organic growth have taken the company this far. It remains to be seen to which extent new product launches expedite it.


DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.

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