GREY:XEBEQ - Post by User
Post by
Ciaoon Dec 03, 2020 9:11am
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Post# 32024989
NP referenced Bloomberg article yesterday
NP referenced Bloomberg article yesterday The Bloomber Article that was posted here has been referenced by the Post.
2020-12-02 06:55 ET - In the News
The Financial Post reports in its Wednesday edition that Canadian banks are eager to gain exposure to growing momentum in the hydrogen industry, giving talks surrounding Xebec Adsorption's debt the characteristics of a "tender," said chairman Kurt Sorschak. A Bloomberg dispatch to the Post says that the provider of clean energy products is seeking to replace two of its credit facilities. Three Canadian banks have entered talks, and the new financing could be "almost 10 times larger" than those existing, Mr. Sorschak told Bloomberg. The company is looking to replace credit lines for a total of $4.5-million, currently provided by National Bank of Canada and Export Development Canada. The new deal is expected to be ready this month, Mr. Sorschak said. Xebec is bolstering its access to credit soon after reorganizing its partnership with Shenergy Group, a Chinese state-owned utility. Xebec closed Tuesday at $6.01, up two cents on the Toronto Stock Exchange.
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From the original Bloomberg article:
While the company is “sufficiently capitalized for the time being,” it could explore the issuance of equity and debt to finance a strategic acquisition, he said. In the medium-term, Xebec plans on getting a credit rating ahead of a potential sustainable debt transaction, Sorschak said.
Previous 2 XBC financings have been bought deals. Recently the appetitie for Clean Energy stocks has been huge with any share price discounts disappearing very quickly after closure (ie. PLUG, Ballard). With 3 banks entering talks it looks like XBC could have more leverage with terms vs. previous financings.