Stifel reinstated coverage of ANRG with a buy, PT of $.60 Key catalysts: We are primarily focused on three catalysts. First, completion of the strategic
review announced during Q223. On July 18, 2023 the company announced it approved a
motion to engage financial advisors to conduct a strategic review of options to maximize
stakeholder value. The options include but are not limited to raising additional financing, sale
of certain assets, and the privatization, reorganization or restructuring of Anaergia. Second, the
advancement of organics diversion legislation globally. Anaergia highlighted current regulations
already in place in numerous US states and landfill reduction targets for Europe that could open
new markets for the company. As countries seek to address GHG emissions and pursue a more
circular economy, Anaergia can offer a comprehensive end-to-end solution to harness harmful
emissions for beneficial use. Third, the resolution of the voluntary Chapter 11 restructuring
proceedings by one of the company’s subsidiaries, Rialto Bioenergy Facility, LLC. We view the
restructuring as a necessary way to address regulatory-driven underperformance (feedstock
availability) that has been weighing on the stock.
Model updates: We have updated our model for the announced strategic investment. We now
estimate Anaergia will exit 2024 with a cash balance of C$70mm.