| Ron Struthers is a friend of mine from the Toronto region whose judgement I trust. He has published an investment letter for many years – The Struther's Resource Stock Report – www.playstocks.net Ron like all of us lowly microcap newsletter writers, has had his share of duds. But he has also had some great picks over the years. Monday he had an interesting pick out on Greenbriar (see below) that he called: “one of the most under-valued and unknown stocks listed in Canada.” This is a very unusual comment for Ron so I thought there must be something to this company. I don’t own it but will dig further into them this week. I thought some of you may have a similar interest. I have included Ron’s write-up below (with permission)
__________________________________ Greenbriar Capital (GRB:TSXV $1.10)
https://www.greenbriarcapitalcorp.com Shares Outstanding: 17.8 Million Greenbriar is a developer of renewable energy, green technology and sustainable investment projects. They provide investors with exposure to Blockchain / Solar Power / Wind Power / California Real Estate / Smart Glass. Corporate Presentation:
https://www.greenbriarcapitalcorp.com/presentations/  REPORT COPY FROM RON Things are picking up speed with Greenbriar as they executed a $50-million (U.S.) mandate arrangement with a major U.S. investment fund to provide the essential project equity portion of the proposed $305-million (U.S.) Montalva project financing package. This occurred in early May and this $50-million (U.S.) equity financing will not dilute the issued common shares as this is a structured product at the project level. Last week, Greenbriar executed an additional $265-million (U.S.) mandate with Pegasus Renewable Energy and Sustainable Infrastructure Credit Advisors LP (RESIC) for the company's 100-megawatt AC Montalva solar project. Together with the previously disclosed $50-million mandate with Pegasus, the total under letter of intent is now $315-million, which covers the entire forecasted project cost. RESIC specializes in key mezzanine capital investments and is an affiliate of Pegasus Capital Advisors LP, an alternative asset management firm with approximately $1.9-billion in assets under management. Pegasus invests in companies within the sustainability and wellness sectors that are seeking strategic growth capital. As an incentive to RESIC, the company will issue upon certain conditions, two million common share purchase warrants exercisable for a period of five years at a price of $1 per share. The RESIC finance team for this $265-million LOI is led by Thomas Emmons. Mr. Emmons is an experienced financier in the U.S. renewable energy business, and has been involved in financing over $20-billion in wind and solar projects in the United States since 2008. One of the toughest hurdles to develop any resource or energy project is obtaining the financing for build out and Greenbriar now has this under wraps so a major risk factor has been removed. The project is on fast track as a critical energy and infrastructure project for Puerto Rico under the U.S. Financial Management and Oversight Board. I believe we are not far off from the day that this gets the green light to start construction. Not to repeat myself, but is important to remember that Montalva once built will generate revenue of US$58 million per year for 35 years to Greenbriar. That is over 3 times Greenbriar's current market cap. What is more, Greenbriar released news today on further developments of their 132 acre land tract in southern California. They have engaged Co-Create Living, it's founder Stuart Nacht has over 40 years experienced in real estate construction and development. Greenbriar's plan is to develop and sell over 1,000 residential town home units. The property had already received approval for a previous 688 unit plan so this will be revised by Co-Create Living. California is facing a severe housing shortage with median home prices about double the national average and rents about 50% higher. Greenbriar will be part of the solution and as per the new California law will equip their homes with solar panels from their solar division. Once fully built out, the property will yield over US$260 Million in gross sales. Again, more than 15 times Greenbriar's current market valuation. I believe this in one of the most under valued and unknown stocks listed in Canada.
Very interesting final sentence preceding!
Closed strong today after this article.
BR |