earnings call transcript -development capital
...encouraging discussion on the deployment of development capital...
Greenlane Renewables Inc.'s (GRNWF) CEO Brad Douville on Q3 2021 Results - Earnings Call Transcript
David Quezada
..."That’s great color. Thanks for that, Brad. And maybe just one last one, I think, it’s been over the past couple quarters, you’ve been talking about maybe deploying some development capital. I’m just curious if you have any comment on potential timing for that going forward and maybe status of the kind of conversations you’ve been having on that front?
Brad Douville
Yeah. I’d be happy to comment on that. It’s an exciting new part of the business. We did start talking about this a couple quarters ago. And this was a consequence large -- in large part of the financing that we did earlier this year in January.
And what we said was that the fundamental premise here is that there is a bit of a scarcity of development capital with developers who are in the preconstruction phase to help accelerate those projects to the ready for construction phase or FID and we can be helpful by deploying this at risk capital.
And so they -- we’ve had a number of discussions since we launched that a couple quarters ago. We have several ongoing. It’s actually -- we initially thought that we would focus in North America, it’s turned out --we’re having conversations not only in North America, but around the world, which is great. That’s supportive of our business.
We are biased in this and that we are looking to have the Greenlane equipment secured into the project and that decision baked in prior to the project financing decisions being made. And that’s why we’re deploying Greenlane capital towards this. We also vet the projects. So we’re in that process right now with a number of leading candidates.
The other key feature of this is that, we’re trying to as much as possible focus on programs, not just single project. So what that means is, looking to those developers who have a pipeline of projects that whereby we get going on the first one and then we structure a series of tranches that we can help them with the next projects in their development pipeline.
So, so far, so good. To answer your question around timing, all things going well. I think, we’re not too far away from making our first announcement in this area. It does take a bit of time to structure these. But so far the strategy is working and we are able to take a look at our sales pipeline, the opportunities there and that’s a great conversation starter on this deployment of development capital model." ...