CVW CleanTech Inc V.CVW

Wait, what?

[Arvid77]

Hmm, not sure what to make of this new venture. When CVW said it was looking to form partnerships with other clean tech firms, I had assumed this meant licensing our technology to them, not investing in theirs. Maybe this is good, but good enough to invoke a $15M private placement to fund it? I also notice that a trade halt was put on us, but the halt was well after the announcement. I guess we'll see tomorrow morning when the halt comes off what the market thinks of it. Anyone else have any insight?

[James72]

CVW technology is very specific to the oilsands so not really many opportunities to licence it. I thought it was always well understood that their were looking to acquire royalty flows. Anyhow, they have just published (Aug 8th) an updated strategy piece that covers both NorthStar investment and CVW core technology and how those plus others are expected to evolve. You might find the deck helpful.

[Arvid77]

Thanks James72 for the heads up on the latest corporate deck presentation. It looks very impressive, with the new duality which now includes a royalty platform. But without income from their proprietary technologies, where does the money come from? Will CVW do a PP for every agreement they enter into? That's what they did with this first one with Northstar. Are we now a private equity firm

[James72]

Bottom line is I don't know, but based on their deck they talk about a pipeline of deals as such I think additional issuance at some point is likely. On the positive side, Royalty vehicles tend to trade at higher multiples (likely 10 - 20x). Assuming the recieve somewhere between $1.8MM  - $3.0MM annually that would imply a Market Cap. pickup well above the $14MM invested. May be this