Jade Power Trust Sale!
Big news from Jade Power Trust (TSX V: JPWR-UN).
On September 1, 2022, the company announced that it was being acquired by Enery Power Holding GmbH. Enery Power Holdings is an Austrian renewable energy company.
Jade Power agreed to a sale price of C$93.7 million in cash. The trust will distribute that to shareholders in two special distributions totaling C$3.40 per unit. We bought Jade Power for C$2.25 per unit. If we hold on for the full C$3.40 payment, we will make 51% on our position.
That happened quickly, considering we just bought Jade Power in August. But that’s the speed of things in this new energy environment.
We have another company making waves in our portfolio right now. Canadian Premium Sand (TSX V: CPS) raised C$9.5 million in August 2022 and put that money to work at once. It struck a deal with the city of Selkirk for 121 acres to build its plant.
And CEO Glenn Leroux went on BNN Bloomberg to talk about the company’s project. It’s worth watching.
We see Canadian Premium Sand as a great “picks and shovels” play on solar power.
That’s a reference to buying the companies that supply a boom, rather than buying the companies in the boom directly. A great “picks and shovels” success story is Levi Strauss.
The iconic jeans brand goes all the way back to the gold rush in 1850. Levi Strauss was a Bavarian immigrant who went to San Francisco to sell dry goods to miners. A big problem for the miners were the durability of the pants. Strauss designed pants out of tent canvas and the rest is history.
Canadian Premium Sand will make and sell solar panels into a similar boom. According to a Solar Energy Industries Association and Wood Mackenzie report, solar panel installations will jump 40% from earlier forecasts over the next five years.
The new target is 215 gigawatts of solar panels over the next five years. And the boost comes directly from the Inflation Reduction Act recently signed into law by President Biden. The biggest issue for the solar industry right now is getting the panels from Asia. Canadian Premium Sand’s production should arrive at the perfect time.
The market reacted well to the company’s recent press. We are up 52.4% on our position since July 2022. That’s another impressive performance in this terrible market.
P.S.: If you have any questions or just want to say “Hi”, drop us a line at firstname.lastname@example.org. I’ll respond to questions in next week’s update.