There is a substantial demand for industrial wholesale power but getting access to low-cost sustainable energy is posing quite a challenge for many operators. One Company with an offering in the Stockhouse DealRoom is promoting a clean, low-cost natural gas solution while also supplementing its income in cryptocurrency mining.
Based out of Alberta, Plexus Technology Corp. (TSX-V:CSTL.P, Forum) utilizes local natural gas to generate electricity for various wholly owned enterprises. Using the province’s low-cost clean natural gas, the Company boasts equipment to create electricity. Its power division sells roughly 70% of its electricity to third parties through multi-year Power Purchase Agreements. Meanwhile, its technology division uses the remaining 30% of its electricity to power its own data centres and crypto mining operations.
Operating in a stable jurisdiction with low energy costs, coupled with mild year-round temperatures and fast internet with solid infrastructure, Plexus’ strategy combines a balanced approach to power infrastructure.
Plexus also has a distinct competitive advantage, as its stakeholder relationships have led to partnerships with energy producers that improve production netbacks for its partners. This provides wholesale priced electricity to off-take partners and to Plexus’ wholly owned enterprises.
The Company is offering up to 4,375,000 subscription receipts at $0.80 (CAD) per receipt for up to $3.5 million. Each of these receipts will be exchanged into common share and share purchase warrant of the Company.
Each Warrant shall be convertible into one Resulting Issuer common share, upon payment of $1.20 per share from the date of conversion. Subscription Receipts will be automatically exchanged upon the escrow release conditions having been satisfied in full and no further action will be required by subscribers. This offer is expected to close by the end of September 2019.
Operations:
Plexus Technology Corp. is well funded with $2 million cash on hand $250,000 in available credit. Its mining operation is also robust with more than 200 megawatts available for partnership.
The demand for energy is only going to grow more intense and the applications for Plexus’ business is endless; from data centres to greenhouse modules, cloud storage and artificial intelligence, numerous businesses will likely seek out their services.
Capital Structure:
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FULL DISCLOSURE: Plexus Technology Corp. is a paid client of Stockhouse Publishing. Stockhouse Publishing Ltd. (Stockhouse) is not registered as a broker, dealer, exempt market dealer, or any other registrant in any securities regulatory jurisdiction and will not be performing any registerable activity as defined by the applicable regulatory bodies. This deal room is for informational purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that contain important information about risks, fees, and expenses. The information contained in this deal room is selective and does not purport to contain all the information relating to Plexus Technology Corp. In all cases, parties should conduct their own investigation and due diligence, not rely solely on the data provided herein and are encouraged to consult with a financial adviser, lawyer, accountant, and any other professional that can help to understand and assess the risks associated with any investment opportunity.