Into The Teeth Of The Bear
Dear Friend,
I spent some time this week reviewing our portfolio.
And it reinforced an old truism about investing. You can do all the research in the world, but timing matters too.
Our timing couldn’t have been much worse for the launch. We jumped right into the teeth of the first major bear market in 12 years.
I mean, for crying out loud!
That said, we are steadily climbing out of the hole we jumped in. Shares of NexGen Energy (NYSE: NXE) and Fusion Green Fuel (Nasdaq: HTOO) have yet to recover, but everything else is rallying.
And you should’ve gotten a bonus special report in your email yesterday. We put that together as a special “thank you” to all of you who took the leap and became early members of Mangrove Investor.
It’s called “Urban Mining is the New Frontier for Battery Metals.”
We think recycling start-up Li-Cycle (LICY) will be one of the giant companies to emerge from this trend.
It has all the hallmarks of a great company – dynamic leadership, strong purpose, useful products, and a huge first-mover advantage.
Another recommendation with a bright future is solar glass maker Canadian Premier Sand (TSX V: CPS). The company just announced an $8.5 million capital raise. That means the company will issue 28.5 million new units of the company to a select group of investors, at $0.30 per unit. Each unit holds a share and a warrant.
A warrant gives the holder the right (but not the obligation) to buy another share of the company at a fixed price over a fixed period. Canadian Premier Sand’s warrants allow holders to buy a share for $0.40 any time in the next two years. That’s why the current share price slipped down to $0.30 right now.
According to its press release, the company raised the money to do the following:
- Complete detailed engineering and designs to enhance the capital cost estimate of the [Manitoba solar glass] project to a 95% confidence interval (up from 80% currently).
- Secure a land parcel in Selkirk, Manitoba, along with the building permits associated with the facility.
- Secure environmental and regulatory permits needed to commence construction.
- Enhance the sand resource estimate to help establish construction financing and future growth phases.
- Generate sample pieces of solar glass for product testing and quality control.
- Advance commercial offtake agreements.
Those are critical milestones that will add value to the company. Management says the Manitoba solar glass manufactory will be ready for construction by the end of March 2023. That’s just seven months from now.
It’s aggressive, but they now have the capital to pull it off. As they meet their milestones, we’ll keep you updated.
Have a great weekend!
Matt Badiali
