CBLU.V - Repriced.


Clear Blue Technologies Intl Inc. (CBLU.V) delivers clean, managed, “wireless power” to meet the global need for reliable, low-cost, off-grid power.

CBLU.V develops and sells "Smart Off-Grid" power solutions and management services to control, monitor, manage, and proactively service solar and hybrid-powered systems such as street lights, security systems, telecommunications systems, emergency power, and IoT devices.

The company offers a number of innovative products: Solar Controller, Solar and Wind Controller, Telecom Power Pack, Illuminence Cloud Control (Demo Video is worth a look), Nano-Grid Power Pack, and IOT solutions.


We initiated coverage on May 2019, below is an update.


May 9 - Collaborates with Mobismart On Robust Mobile Off-Grid Power: Mobismart to provide mobile, grid-free, robust power that displaces diesel generators on infrastructure and construction projects. Mobile off-grid power is going to replace diesel generators because the cost and inconvenience of refueling these generators is too great.


Mobismart’s mobile solar generating rugged, go-anywhere power trailers, called Mobisun, are used to power telecom tower systems, environmental testing equipment, communications, lighting, and security cameras in the construction, mining, oil and gas, renewable energy, and telecom industries.


The joint solution is already operational, powering wind farm environmental testing equipment for Renewable Energy Services Canada Inc. Clear Blue’s Illumience software remotely monitor but also to control the Mobisun unit.


May 16 - Announces Update on Delay in Filing Financial Statements.


May 22 - Launches Energy-as-a-Service for Wireless Power. New subscription-based service for clean, wireless power for critical systems such as off-grid street lights, telecommunications systems and Internet of Things (IoT) devices.


This innovative alternative to traditional, capital-intensive energy acquisition enables commercial and industrial customers (C&I) to pay an annual subscription for energy services. According to Navigant Research, the annual global market for commercial and industrial Energy-as-a-Service is estimated to reach $221.1 billion by 2026 .


May 31 - Announces Q1 2019 Financial Results.


June 3 - Announces 2018 Financial Results.


June 17 - Announces Management and Board Change. Departure of Chief Financial Officer, Lawrence Tjan, from the Company. Paul Kania, CPA, principal at PLK Accounting & Finance, will serve as the interim Chief Financial Officer.


Independent board member and audit committee chair Hugh Rogers has resigned.


Aug. 28 - Announces Q2 2019 Financial Results.


Sep. 13 - Announces RSU and Option Grants. Board of Directors has approved the grant of 487,002 incentive stock options. The options are exercisable into common shares of the Company at a price of $0.16 per share. Also granted an aggregate of 1,176,653 RSUs to officers, directors and key employees and consultants, with vesting on February 1, 2020.


Sep. 17 -9mobile’s Network Expansion: Raeanna and Clear Blue Technologies To Deliver Proof-of-Concept For 2G-3G Rollout in Nigeria. First two pilot sites to validate a planned rollout across 100 sites in 2020 to power new telecom systems in support of voice and data services from 9mobile, a fast-growing communications provider in Nigeria.


“Based on the success of our previous collaborations, Clear Blue was the only choice to be the power systems provider for this exciting new project,” said Tunji Alabi, Executive Director of Raeanna Nigeria Limited. “These new sites will add to 9mobile’s telecom infrastructure to meet the huge and growing demand for high speed data in Nigeria.” 


The two sites in southern Nigeria are proof-of-concepts for a planned much larger 2G/3G/4G project.


Sep. 25 - Launches Next Generation Of Smart Technology For Wireless Power. Smart controller and power devices improve efficiency and reliability for critical off-grid telecom and nano-grid infrastructure.


The new Smart Off-Grid VS controller, along with two new smart power products, raises the bar in delivering the key control and management technology required for mission-critical, large-scale rollouts in telecom, Smart City, and IoT nano-grid applications. Smart Communications Gateway, Smart DC/DC Converter to be available November 2019.


Oct. 4 - To Rollout Mobile Infrastructure with Nuran Wireless at 50 Locations in the Marshall Islands. The agreement includes Clear Blue’s Nano-Grid Power Packs, as well as Clear Blue’s Illumience cloud software, the industry’s most advanced off-grid control and management system. The agreement is the CBLU's first project in the Asia-Pacific region.


NuRAN Wireless is a leading supplier of mobile and broadband wireless infrastructure solutions worldwide, headquartered in Quebec, Canada. NuRAN will deliver and install complete cellular sites using its LiteRAN xG evolutive 2G-3G-4G multi-standard radio access network solution and its Nexus core network solution.


Oct. 22 - Announces Small Convertible Debenture Financing and Update on 2019 Outlook Guidance. Private placement offering in the aggregate principal amount of up to $600,000 of convertible unsecured subordinated debentures at a price of $100 per Debenture (the "Offering"); Conversion price of $0.20 per Unit and Warrant $0.35 cents.


Update on Q3 Outlook Guidance.

“Based on the prior 8 Proof of Concepts and 3 First Install sales, management provides guidance that we expect to win at least two more POC and one more First Install in 2019 for a total of 10 Proof of Concepts and 4 First Installs in 2018/2019.


There can be no assurance we will win a Rollout contract, however the bid processes currently underway are structured for a mid-2020 decision by the project operators.”


Oct. 23 - Ameresco Solar To Distribute Clear Blue Technologies’ Smart Off-Grid Systems in the North American market as a part of its off-grid solar solutions. Ameresco Solar is a division of Ameresco (NYSE:AMRC), a leading renewable energy company and energy efficiency company offering energy solutions for public and private organizations.


Nov. 4 - Closing of Convertible Debenture Financing. Closed its private placement offering (the "Offering") of convertible unsecured subordinate debentures (the "Debentures") for gross proceeds of $811,000.


Certain directors, officers and other insiders of the Company purchased or acquired direction and control over a total of $172,000 worth of Debentures under the Offering. The net proceeds will be used for general working capital.


Nov. 5 - Announces Town of Eckville, Alberta Saves Money and Goes Solar with Smart Off-Grid Lights.

Town of Eckville, Alberta has purchased Illumient solar-powered lighting systems.


Nov. 14 - To Power Vodafone Ghana Project in Ghana. It will provide its Smart Off-Grid solutions and services for seven greenfield sites in Ghana to power a telecom network for Vodafone Ghana. The consortium delivering the project will be led by NuRAN Wireless (CSE: NUR). The GSMA, an organization representing the interests of 750 mobile operators and nearly 400 companies, is championing the project in partnership with Vodafone Ghana.


The project was awarded by an independent panel of industry experts to three consortiums, one of which was led by NuRAN including Clear Blue, and will be completed over 18 months. Under the project plan, the NuRAN and Clear Blue consortium will deliver the telecom solution for seven greenfield sites in the following six months and the host mobile operator, Vodafone Ghana, will use the remaining 12 months to integrate the sites into their network.

Nov. 15 - Announces Transition of Auditors Board of Directors has accepted the resignation of the Company’s auditor (the “Former Auditor”).  The Board expects to announce its new auditor within the coming weeks.


There were no reservations in the Former Auditor's reports on the Company's financial statements during period that the Former Auditor acted as the Company's auditor.  There are no reportable events including disagreements, consultations or unresolved issues as defined in National Instrument 51-102 – Continuous Disclosure Obligations ("I 51-102").


Nov. 19 - Announces First Million Dollar Order. Largest single order to date for the Smart Solar Off-Grid system, for an amount which exceeds $1.2 million CAD. CBLU.V will provide solar off-grid lighting to an area of key infrastructure to a customer in the Middle East and Africa region. It is expected to ship in Q4 2019 and the customer will install in 2020. The project will provide lighting to multiple locations where high reliability and security are a key requirement.

Nov. 26 - Announces Q3 2019 Financial Results.


Jan. 23 - Receives Patent for its Smart Off-Grid Dynamic Charging Technology. Received its U.S. Patent for its Smart Off-Grid Dynamic Charging algorithms. This patented intellectual property enables CBLU.V to optimize battery charging based on specific application, differences in battery chemistry, energy sources, and other factors.



Summary

In the past six months, CBLU has traded between $0.105 and $0.25 cents. The company has been active in many fronts including, Financing, Partnership, Distribution. Product Developments and Projects but first, a look at earnings:


As indicated in the table above, earnings have been down from Q4 2018. However, a resurgence in Revenues and Gross Profits can be seen along with a decline in Net Loss from Q1 to Q3 2019. Note that a) CBLU RTO and IPO ($2.7M) has impacted expenses in 2018, and b) CBLU's quarterly revenue can be irregular ("lumpy") due to the nature of its business.


Also, although the Cash reported in Q3 2019 was low, a number of announcements were made thereafter including an order for $1.2M for solar off-grid lighting in Middle East and Africa.

Financing

CBLU completed an oversubscribed (33%) convertible debenture of $0.8M ($0.6M announced) at $0.20 cents with warrants at $0.35 cents. Overall, Insiders contributed $0.17M (21%).


Partnerships

On May 9 2019, CBLU partnered Mobismart (Mobile Off Grid Power) to power telecom tower systems, environmental testing equipment, communications, lighting in a number of verticals.


Distribution

CBLU enlisted Ameresco Solar (NYSE:AMRC) to distribute its Smart Off-Grid systems including the Illumient Smart Off-Grid lighting systems, the Smart Off-Grid Controller, the Nano-Grid Power Packs, and Energy-as-a-Service (EaaS).


Product

The launch of Energy-as-a- Services (EaaS) for Wireless Power is noteworthy. Using EaaS, a subscription fees as opposed to the traditional high Capex alternative, CBLU aims to shorten the sales cycle and increase its revenues.


In addition, the launch of a new Smart Off-Grid VS controller, along with a Smart Communications Gateway and Smart DC/DC Converter were noted. These are reportedly needed for mission-critical, large-scale rollouts in telecom, Smart City, and IoT nano-grid applications. More details on each products can be found here.


Finally, the recent a US Patent announcements definitely seems to have an impact on valuation.

10483790 - System and method for charging autonomously powered devices using variable power source.

10411495 - System for the monitoring and maintenance of remote autonomously powered lighting installations.


Projects

In collaboration with Raeanna (POC 2G,3G), CBLU announced 9mobile network expansion roll-out in Nigeria for 2 pilot sites for validation and planned rollout for 100 sites in 2020. Again, CBLU received quotable recognition:


Based on the success of our previous collaborations, Clear Blue was the only choice to be the power systems provider for this exciting new project,” said Tunji Alabi, Executive Director of Raeanna Nigeria Limited.


A project with Vodafone Ghana (off-grid solution for seven sites) was also announced. This is another win for the company for a project that needs to be completed in the next 16-18 months.


Finally, the $1.2M purchase order (largest single order to date) for a project in Middle East and Africa region along with another project with Nuran Wireless in the Marshall Island (50 locations) were noted. These are in addition to a number of multiple Proof of Concept (12) and installs (5) awaiting a decision for roll out by mid 2020.


Conclusion

While FY 2019 has not materialized financially as FY 2018, CBLU has made a progress on multiple fronts which finally appear to be in the process of being reflected in valuation. As such, it is accordingly being repriced.


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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