Primer for newer KNR followersFolks,
Looks like there are (excitingly) a few newer people following KNR who are looking for info. Here's a primer, apologies if not new for some on here.
Backstory: - Historically a smart buildings and air monitoring company with a strong inside ownership and a compelling leadership team - check out some of Paul Ghezzi's interviews for more
- Developed BioCloud fast during the last 4-5 months of the pandemic - it's a 'safe space technology' that monitors air quality and can detect a variety of airborne impurities, pathogens and the like - will sell for $12k per unit initially and then there is x-sell and upsell revenue from chamber replacements and into further smart building enhancements (core business)
- Got an exploration grant from the Canadian gov't to further test the technology
- Gained external validation that it detects COVID in the air (as well as other things, this is not a 1 trick pony).
- Technology awaiting CSA electrical approval - they've achieved this with other tech and have expressed confidence
- Are also pursuing manufacturing partners with a view to create capacity to produce ~20k units per month going forward
CEO v.firm about a few things: - Wants a big initial marquee order to validate the tech (likely gov't) and will serve Canada initially but Global potential and enquiries have already happened at smaller order levels internationally
- Main high potential applications include schools, long term care facilities and enclosed spaces of ~1000sqft with re-circulated air where 3 or more people gather - not looking at an individual residential/retail strategy at this stage
- Looking to create shareholder value, not looking to dilute and take external funding - balance sheet strong, will use major initial order to finance expansion
Milestones to look for (my supposition): Next 30-60 days: - Secures CSA approval, manufacturing partner(s), secure big initial contract and visible financial support from the Canadian Gov’t for deployment in schools initially (most likely use case) as part of their $3bn safe schools program that is already funded
- Progress made on patenting the chamber part of the technology to protect it
Next 120 days: - Secures multiple institutional contracts, likely from long term care facilities, hotel chains, commercial office buyers of scale and so on
- Production goes off without too many hitches, competitors are slow to receive approvals and stories of the safe air becomes a viral phenomenon and builds credibility around the world
Next 180 days: - Further contracts and use cases show promise as well as major scaling of production and distribution internationally
Next 365 days: - Recurring revenue, cross-sell and upsell from existing customers as well as a plethora of new customers and smaller format orders as well as individual home / dwelling deployments become mainstream
- Air quality and air safety becomes a national agenda issue in North America, Canada and more broadly
Next 2 years: - Bought by Honeywell, GE or similar
If all of this and more happens then this is an $5bn+ business with a solid margin and a tech, innovation and healthcare multiplier applied to forward earnings without breaking sweat. That should leave the share price at $50 and an exit premium if they sell at even more than that.
Hope helpful