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Thermal Energy International Inc V.TMG

Alternate Symbol(s):  TMGEF

Thermal Energy International Inc. provides energy efficiency and emissions reduction solutions to the fortune 500 and other multinational companies. It operates primarily in North America and Europe but also sells its products and services through representative agents throughout the rest of the world. It markets, sells, engineers, fabricates, constructs, installs and supports two technology lines, such as heat recovery solutions, including direct contact heat recovery solutions (FLU-ACE), indirect contact heat recovery solutions (HEATSPONGE and SIDEKICK), and condensate return system solutions (GEMTM steam traps). It is also developing several other technology lines, including low temperature biomass drying systems (DRY-REX). Its solutions can recover up to 80% of energy lost in typical boiler plant and steam system operations. It has two primary operational bases of operation, one in Ottawa, Canada and the other in Bristol, United Kingdom, covering Europe and the rest of the world.


TSXV:TMG - Post by User

Comment by Mostlyseriouson Jan 12, 2024 10:08am
92 Views
Post# 35823437

RE:RE:RE:RE:RE:RE:RE:RE:RE:Chewing through it

RE:RE:RE:RE:RE:RE:RE:RE:RE:Chewing through it This gets brought up all the time with smaller but growing companies. 

The generic answer is that typically you have to grow to a certain size before the bigger players take notice and consider acquiring you, unless you have some incredible newly patented technology.  The figures I keep seeing are in the $50 - $100 million range.  Usually to get there, companies will likely have to make some acquisitions of their own like TEI is doing.  

I think BEI was stalled at around US$2M annual revenues when it was bought by TEI. Don't know where it stands now, but I think to make a bigger splash from an acquisition strategy perspective, TEI IMO has to acquire something with an already larger revenue base...minimally over $5M IMO that can be synergistically doubled within maximum 3 years. 

Significance of the SP plays a role.  The higher the SP the more leverage you have in terms of cost of financing.

Until then, continuing to land contracts that are north of $2M like over the last year and a bit, is what should keep us excited.  Throw in a couple of mega projects over a year, and will be continuing to go places and be pleased even without the prospect of being acquired.

After the long wait for so many of us, what's another couple of years, right? 
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