EnerDynamic Hybrid Technologies (EHT.V) offers proprietary, turn-key energy solutions which are intelligent, bankable and sustainable. EHT's expertise includes the development of its ENERTEC module structures with full integration of smart energy solutions for application in modular homes, cold storage facilities, residential or commercial buildings, and emergency/temporary shelters amongst others.
We initiated coverage February 2017, with subsequent notes in August 2017, October 2017, April 2018, September 2018, and April 2019. Here's an update on the activities of the last nine months.
April 18 - Announces New Sales Division EHT AgTech Ltd. EHTAg is an off grid cultivation unit. It entails EHT's ENERTEC Skin technology, Alpha Outback's off grid solution, and Growratio's connected lighting and control systems.
This unique solution allows all facets of a crop's cultivation cycle to be precisely monitored and controlled in a superior environment to optimize efficiencies for cost savings and operation in under-serviced areas.
Apr. 22 - Updates On Its Two Ghanaian Projects. EHT is pleased to announce that the first project to supply up to 100,000 rooftop solar systems under the United Nations OPS program ("UNO"), in conjunction with the Government of Ghana and its Ministry of Works and Housing, has now been funded. The additional lands now being provided will help the group to add a stronger partner, which is necessary to secure the funding from Elevate Finance and EDC.
The second project, construction of up to 100,000 ENERTEC homes with EHT's joint venture partner, Unified Construction and Investments ("UCI"), has commenced site surveying following the transfer to the joint venture of ownership title to the full 2,000 acres of planned sites. The UNO program for EHT, being the supply of ENETEC solar systems, will start in the 3rd quarter of this year and is expected to continue for the next 5 years.
The UNO & UCI orders are both part of the Government of Ghana's Building of Social Green Housing initiative that is forefront in the Government's Solar program, and both orders are priority governmental infrastructure projects.
Apr. 23 - EHT AgTech Announces Research and Development on HOPS for Beverages/Brewing. Focused on optimizing the cultivation of HOPS in their newly launched specialty grow units.
Research will be conducted in Growratio's downtown Toronto laboratory, and will be focused on manipulating growth patterns and shortening harvest cycles using Growratio's precision lighting and control systems.
Apr. 25 - EHT AgTech Announces Application to Grow Medical Marijuana. In the final stages of completing an application for a federal cultivation licence for a state of the art medical cannabis production facility.
The license will allow for the cultivation of up to 15,000kg of cannabis per year, which will be rolled out in 3 phases of 5000kg each. EHTAg, once licenced with all units operational, will expect gross revenues of up to $75M per year at a price of $5000 per kg of premium medical cannabis.
Apr. 25 - Announces Partnership with Canadore College. EHTAg Tech (“EHTAg”) its JV with Growratio are pleased to announce the partnership with Canadore College of North Bay, Ont.
The partnership will enable the EHT and EHTAg to train students enrolled in skilled trades programming to take an active role in manufacturing the grow pods for the horticultural market. The opportunities available in North Bay also enable the company to work with a number of corporations who will be establishing vegetable and fruit growing facilities for export markets. We will be in a position to confirm orders once final negotiations are concluded (in May).
Apr. 29 - Updates on AGM: The shareholders decided not to authorize the plan for a share consolidation (1 for 5 basis).
Apr. 30 - Provides Update on Bahamas Jack's Bay Project (November 5, 2018). EHT will receive an initial deposit immediately for the first home and will receive another deposit on the second home in June.
The contract with Jack's Bay calls for two show homes to be constructed adjoining the "Playground", a 10-hole short course being designed by Tiger Woods. Thereafter, the joint venture plans to utilize the same products in Puerto Rico and hurricane/tornado prone US States to build sustainable, safe and affordable "Net-Zero" homes.
May 15 - EHT Ag Tech Attending Cleantech Forum Europe - Stockholm, Sweden May 21 to 23, 2019. Cleantech Forum Europe is being sponsored by the Canadian Government Cleantech Initiative.
May 17 - Announces Planned Securities for Debt Transactions and Closes Non-Brokered Private Placement. Settle up to $2.5M of debt with issuance of 50M shares at $0.05 (Warrant 0.075 cents). Also closed May 2 non-brokered private placement for $0.4M (8M shares) at 0.05 cents (Warrant at 0.07 cents).
May 21 - Updates Ghana Project With Unified Construction. Completed the site surveying following the transfer to the joint venture of ownership title to the full 2,000 acres of planned sites (announced April 9, 2019) in order to underpin the funding for Phase 1 and future phases. The additional lands provided will help the group to add a stronger partner, which is necessary to secure the funding from Elevate Finance and EDC.
UCI is finalizing arrangements with the subcontractors that EHT believes will satisfy the EDC credit requirements.
With the site surveying complete, the Government of Ghana can now finalize the contract to build the first 10,000 units. Anticipated to be completed in the next 30 days, EHT would then finalize financing with EDC and Elevate Finance.
May 27 - Provides Update on Puerto Rico and Bahamas. Bahamas;EHT confirms that Cat5's project to build the houses at Jacks Bay is proceeding as planned and EHT is awaiting receipt of the CAD files of the construction.
Jun. 7 - Provides Update on Puerto Rico: US Congress sign a $900M aid for Puerto Rico’s recovery efforts from hurricanes in 2017. EHT and our JV Partner BFA are ready to begin as we have reported over the last months.
Jun. 17 - Announce Modular Order with Northern Shield Development Corporation (NSDC). Announce the commencement of a modular construction initiative using EHT's Enertec panels and a co-developed steel modular frame technology. NSDC has funded projects in Ontario and Quebec requiring over 200 modules in 2019/2020.
The modules will be constructed at EHT's Niagara Falls plant and then shipped to the project sites. "The relationship with NSDC represents a multi-million dollar opportunity for EHT. The deal, which is structured very well for EHT, will provide us with significant deposits and production cash flow" according to EHT's CEO, John Gamble. Prototyping is currently underway with production expected to commence in mid-July.
Jun. 21 - EHT Closes Non-Brokered Private Placement; 10M units at a price of $0.05 per unit. Warrant at 0.06 cents.
Jun. 27 - Announce Controlled Environment Agriculture Centre of Excellence in North Bay, Ontario.
The Centre of Excellence will create a multi-disciplinary ecosystem of organizations focused on the future of controlled environment agriculture, including biotechnology and genomics, advanced cultivation technologies and information systems, advanced processing and manufacturing, as well as innovative renewable energy systems.
Jul. 15 - Provides Shareholder Update:
Current Projects
Brock University: Project completed last week. North Bay Project: Upon delivery of grow unit to North Bay, we have now started discussions with the Government of Canada regarding working with them and Canadore College on the Sustainable Food Initiative for the Northern Communities. Cannabis Grow Project: a test unit now (in its first grow cycle) on an approved medical marijuana grow facility. Pakistan House Project: Pilot House is ready to ship. To build first test house in Lahore, Pakistan in early October.
New Projects
Energia Power Solutions LLC: a distributor that we signed a distribution agreement with early this year, has placed their first PO for a special power wagon that will be utilized in emergency situations for backup power and water purification. Northern Shield: completed the engineering phase. To start next week to build the first unit. Anticipate 2 week duration. Once complete and approved, will start on the first 100 units.
Ongoing Projects
Bahamas - Jack's Bay: House design is now complete and we are preparing for production to build and ship the first house (August). Puerto Rico - We have received confirmation that the first 100 "Maria" houses will be ordered and deposits paid now the relief funds are moving from the US Government. We are told to expect this in August. Ghana: will meet next week with all the relevant Ghanaian government officials at the Ghana-Canada Summit taking place in Vancouver. Ivory Coast: Will be making a site visit in late August; we will update after that visit. Burkina Faso: we will have meetings with our partner in Ivory Coast when we visit Western Africa in late August.
Sep. 5 - Announce Modular Home Order with Northern Shield Development Corporation. (SEDAR) NSDC has now made the design changes necessary to utilize the EHT Enertec design in 4 of these projects, which represent approximately 50 modules at present. The prototyping has been completed with production expected to commence mid-September with the requisite deposits placed with the order at that time.
Sep. 9 - Hurricane Dorian Relief Efforts – “SOS Bahamas”. With partner Cat5 Solar and Microgrids (Bahamas) Ltd (Cat5) have developed a plan to help the citizens of the Bahamas; shipping EHT’s power wagons to produce power and drinking water to the two islands and raise donations to cover EHT’s manufacturing and shipping costs.
Sep. 23 - Announces Modular Order from Northern Shields. "EHT has received a PO for the first 6 modules, which will go to NSDC's project affordable multi-residential development in Orillia, Ontario and will be delivered in late 2019. EHT has also a second PO pending for a 10 plex unit in Nunavik, Quebec. This project requires 13 modules and will commence production in November with delivery for spring 2020.
EHT has received a deposit on the first project and will receive a deposit and progress payments on the second project as EHT builds the units over the winter once the PO is confirmed.
The combined value of the first 2 projects is approximately $1.5 million. EHT and NSDC are negotiating terms on the next two projects (3 &4), which have a combined value of over $4 million.
Sep. 24 - Announces Building of EHT Micro-Grow at Niagara Falls Facility. EHT today put shovels in the ground to start the building of their Micro-Grow facility. The facility will serve two purposes: (1) to showcase EHT’s technology for building Micro-Grow units for customers to come and view the merits and characteristics thereof; and (2) to allow EHT to grow up to 600Kg of medical grade cannabis for sale to customers.
Oct. 2 - EHT Closes Non-Brokered Private Placement and Announces Securities for Debt Transaction. Completed a non-brokered private placement of $485,000.00 that was conditionally accepted by the TSX Venture Exchange on September 24, 2019. The private placement, which closed today, is comprised of 9,700,00 units at a price of $0.05 per unit (each a “Unit” and collectively, the “Units”). Each Unit consists of one common share and one common share purchase warrant, with each whole warrant being exercisable at a price of $0.06 per share.
Oct. 11 - Sale of Controlled Environment Growing Units to Canadore College in the Support of Food Security for Northern Communities. Slated for delivery in November, the units will initially be used for research and academic training for existing and new programs including Functional Genomics and Health Care Administration - Indigenous.
The College in partnership with EHT is currently in talks with five First Nation communities who have expressed interest in the opportunity to use this technology and create a more economical way to produce and sell food.
Oct. 21 - Announces Co-Operation Agreement with Scattered Gold Biotechnology Inc. SGB is interested in the generation of a GMP-compliant facility and the process of production for select recombinant proteins, including potential biopharmaceuticals for human use.
SGB and EHT believe once a production model of a GMP-compliant facility is completed, the process design will generate valuable IP, opening opportunities for other companies to licence the technology from SGB and EHT
Oct. 23 - Announces Purchase Order and Letter of Intent from Lighthouse Growers for Up To 20 Micro Grow Units. Purchase Order for 2 Micro Grow Units and a binding Letter of Intent to purchase up to 20 Micro Grow Units.
With a price of $0.75M for each Units and a deposit of $0.25M with the order, progress payments will be made as the units are built over the next few months; Delivery in April 2020. Future units delivery for fall 2020 and spring 2021.
Oct. 29 - Updates Ghana Project With Unified Construction. Completed the site surveying following the transfer to the joint venture of ownership title to the full 2,000 acres of planned sites (announced April 9, 2019) in order to underpin the funding for Phase1. The JV reported the site plan is now complete and approved by the Government of Ghana.
With the site plan complete, the Government of Ghana has now finalized the contract to build the first 10,000 units. The JV has now sourced financing to start the first 500 homes on the site. Construction of the first units will begin in late January 2020. Once complete (in approximately 90 days as the first units will take longer) the JV will start the second tranche of 500 which are slated to take 60 days or less.
The UCI order is part of the Government of Ghana's Building of Social Green Housing initiative that is at the forefront in the Government's Housing program, which oversees these priority governmental infrastructure projects.
Nov.1 - Announce Sale of Micro Grow Unit with Option of 2 Additional Units. Sale to La Huerta Imports ("La Huerta") with an option to purchase 2 more Units over the next two years. La Huerta and EHT and GR have signed an agreement for La Huerta to purchase the first Micro-Grow Unit (to grow specific rare tropical berries utilizing EHT and GR technologies) at a cost of $1,200,000 with a deposit of $100,000 plus progress payments as the Unit is built.
The Units will be located in Niagara Falls and operated by EHT and GR, with the production to begin immediately.
Nov. 4 - Announces Appointment of Dr. Pritesh Kumar as Advisor to the Board of Directors.
Nov. 13 - Announces Delivery of Mobile Power and Water Filtration to Energia Power Solutions. First mobile solar power unit (MSPU) with water purification systems, built using EHT's leading ENERTEC technology and products
The MSPU which is an Off-Grid Mobile Power & Water Purification/Desalination unit for Disaster/Emergency Response for NGOs, Military, and Governmental agencies, will provide Power and Water to remote locations.
Dec. 6 - Updates Ghana Project With Unified Construction. Please see link below to the contract signed by UCI and the Government of Ghana. Part two of the link will show the agreement between EHT and UCI.
With the site plan complete, the Government of Ghana has finalized the contract to build the first 10,000 units. The JV has now sourced financing to start the first 500 unit homes on the site. Construction will begin in late January 2020.
Dec. 10 - Provides Solar Technology Update - EHT has been able to use a back contact solar back sheet and integrate its ENERTEC fiberglass material to achieve a solar module that can provide over 25 watts per sq. foot of roof space.
This breakthrough, which has been over a year in the works, allows EHT to power all its integrated solutions, homes, shelters, power wagons, and most importantly its micro-grow units more efficiently and demand less battery storage.
EHT will have the new equipment up and running at its Niagara Falls facility by the second quarter of 2020.
Dec. 23 - Completes building microgrow cannabis plant. Completed new microgrow cannabis facility at its Niagara Falls location, as previously announced on Sept. 24, 2019. The facility will serve two purposes: (1) to showcase EHT's technology for building microgrow units for customers to come and view the merits and characteristics thereof; and (2) to allow EHT to grow up to 600 kilograms (kg) of medical-grade cannabis for sale to customers.
EHT will now apply for a microgrow licence from the government of Canada to initiate the growing process. EHT anticipates the licence will take from 90 to 120 days to receive. Revenues expected in the Q2 or Q3 of 2020.
Dec. 31 - Closed Non-Brokered Private Placement: completed a non-brokered private placement of $1,030,400. The company issued 20M units at a price of $0.05 cents per unit (share and warrant). The net proceeds from the offering will be used by the company for general working capital purposes. Insider Participation of 50% plus; $530,400.
Jan. 6 - Axia Materials Announce Strategic Partnership. Axia Materials has been in the composite materials business for over 20 years and has built and developed a number of housing projects with their specific composite. EHT and AXIA have now signed a partnership agreement whereby EHT will supply its ENERTEC solar panels to AXIA for use in a number of projects that AXIA currently has ongoing throughout the world. Over the next few weeks, EHT will be completing supply contracts for delivery starting in the 2nd quarter of 2020.
Summary
There were thirty-three news release for the period (9 Months)! During which the stock traded as high as $0.05 and as low as $0.02 cents. There were seven insider purchases from one insider (totaling over $50,000) and no insider sales.
Ghana
Of the two projects (Apr 22 release), JV with UCI had a site survey completed (May 21) and it was reported: "UCI was finalizing arrangement with the subcontractors that EHT believes will satisfy the EDC credit requirements and expected. Government of Ghana can now finalize the contract to build the first 10,000 units, expected next 30 days". On Oct. 29, EHT stated: "construction of the first units will begin in late January 2020. Once complete (in approximately 90 days as the first units will take longer) the JV will start the second tranche of 500 slated to take 60 days or less".
Burkina Faso and Ivory Coast
Last update via news release on July 15 Corporate Update issued by EHT. At the time, meetings were scheduled.
Pakistan
As per July 15 2019, Pilot House is ready to ship. To build first test house in Lahore, Pakistan in early October.
On Apr 18, EHT launched a new product/sale and marketing division; an off grid cultivation unit with Growratio and Alpha Outback, Subsequently, EHT announced multiple initiatives with HOPS (Apr. 23), Medical Marijuana (Apr 25), and Canadore College (Apr 25, Jun 27, and Jul 15). In the Jun 27 release, A Center of Excellence was announced along with multiple projects with Growratio (and a 10,000 sq. ft. lighting assembly and controls development plant, A 100,00 sq ft. plant for a newly-created beverage company. and a 25,000 sq. ft. building for the processing of biological materials to supply the pharmaceuticals sector). In addition, it was stated: A fourth plant is also on the books for construction in spring 2020 in collaboration with EHT. A 50,000 sq. ft. factory for manufacturing agricultural grow units and modular housing for the northern Ontario market. On Oct 11. Canadore College ordered four Controlled Environment Growing Units (CEGU) for food production which were slated for delivery in November 2019.
Northern Shield Development Corporation (NSDC)
On Jun 17, EHT made an announcement (modular construction initiative) with updates on Jul 15, Sept 5, Sept 23, 2019. The last release stated: commencement of production of their modular construction initiative using EHT's Enertec panels and a co-developed steel modular frame technology, EHT has received a PO for the first 6 modules, which will go to NSDC's project affordable multi-residential development in Orillia, Ontario and will be delivered in late 2019.
Also stated: EHT has received a deposit on the first project and will receive a deposit and progress payments on the second project as EHT builds the units over the winter once the PO is confirmed.
Micro-Grow Building
In the Sept. 24 release, EHT announced breaking ground on the facility will serve dual purposes: (1) to showcase EHT’s technology for building Micro-Grow units for customers to come and view the merits and characteristics thereof; and (2) to allow EHT to grow up to 600Kg of medical grade cannabis for sale to customers. On Dec. 23, EHT announced completion.
During that time, EHT announced a Cooperation Agreement with Scattered Gold Biotechnology (Oct. 21) : developing customized cultivation units to form the basis of a Good Manufacturing Practice (GMP)-compliant facility in North Bay, Ontario. With the assistance of Canadore College, as well as, a PO and LOI (2 Micro Grow Unit) with Lighthouse Growers (Oct. 23). The release stated: Initially they have placed a firm purchase order for 2 Micro Grow Units at a price of $750,000 each with a deposit of $250,000 with the order and will make progress payments as the units are built over the next few months with delivery in April 2020; future units to be delivered fall 2020 and spring 2021. Finally, on November in collaboration with Growratio ("GR") the sale of a Micro-Grow Unit to La Huerta Imports ("La Huerta"). at a cost of $1,200,000 with a deposit of $100,000 plus progress payments as the Unit is built.
Bahamas -JackBay
EHT was making progress (Apr 30, May 27, Jul 15) with an anticipation to ship unit in first week of August but with the occurrence of Hurricane Dorion was limited to a relief effort (Sept, 9).
Misc.
Energia Power solutions; a distributor that EHT signed a distribution agreement in early 2019, placed their first PO for a mobile solar power unit (MSPU) used for emergency situations for backup power and water purification which was delivered on November 2019. On Jan 6, EHT announced a strategic partnership with Axia Materials to supply its ENERTEC solar panels to AXIA for use in a number of projects that AXIA currently has ongoing throughout the world.
Financing and Debentures
For 2019 there were five rounds of financing (private placements) and one round of debt settlement. In total there were 107M shared issued at 0.05 cents; roughly half attributed for debt settlement. Price trend in warrant is noted.
Conclusion
In addition to Housing, EHT has diversified its business in 2019 by launching a new unit (AgTech) while creating a new lines of business (Indoor Agriculture; Micro Grower). Partnership with Growratio and Canadore College were instrumental catalyst. The key will be the ability to convert these opportunities into revenues in a timely manner.
While the JV with UCI in Ghana is slated to begin in late January 2020, longtime shareholder will know that its been a long time coming and that further delays are possible. However, the announcement of Axia Material had an impact on valuation this week which may suggest a form of progress on other fronts. In the last two days, EHT broke R1 and R2.
EHT has ruled out share consolidations in 2019 and successfully raised fund multiple times above its valuations ($0.05 cents) in multiple non-brokered placements with insider participation. However, investors still need to consider the number of shares introduced to the float (107M), as well as, the number of possible warrants.
Indeed, 2020 may indeed be a "breakout year", but the last few days perhaps a breakout week?
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.
