RE:RE:RE:RE:RE:RE:RE:RE:RE:What a earnings reportSolar Brokers is a mystery to me. Here's a snippet from the PR that was released upon the original Grenville purchase:
Grenville CEO Steve Parry commented: "Our team has a profitable track record of investing in consumer-facing energy sales companies, with over USD $100M of exit value yielded from investments made prior to the inception of Grenville. We can identify the winning teams and business models. Grenville is thrilled to have the opportunity to fuel Solar Brokers’ continued expansion with our capital and relationships.”
I remember being struck by the hubris of this PR, and being concerned that they were investing in an industry that depends on fickle government support. It seemed likely at the time that Doug Ford would become premier of Ontario, and he essentially promised to kill all green energy rebate programs. He got in power and did just that, cooking the Ontario residential solar industry.
I imagine (hope) that Solar Brokers saw the writing on the wall and wanted to expand out of Ontario to mitigate this risk. They needed capital to do so. Fine. But the royalty funding model just doesn't make much sense IMO. Clearly revs were going to go down considerably. It would take far more than a year to ramp up revs on the prairies to compensate for the losses in Ontario. And even then they're exposed to changing gov't policies.
So they're now into Solar Brokers for $2M. The last $1M is a secured line of credit, but even still --sure feels like good money after bad. If you do some searching online it's pretty clear this company has issues. Flow also now owns 33% of the equity and is more involved in operations, but I don't think they have the manpower/expertise to do much. I also see that Solar Brokers is currently advertising for a new VP Finance. Lots of emphasis in the ad on deal making, fundraising, equity sales etc. They're looking for a CPA with a bunch of experience and are willing to pay $90-100k. Good luck!