Canaccord Genuity Releases Sustainability and Special Situations Watch List

Canaccord Genuity has released the second edition of its Sustainability and Special Situations Watch List, featuring five companies in the sustainability sector.

Analyst Raveel Afzaal of Canaccord Genuity profiles five companies that he believes should be on investors’ radar.

The first company is Pioneering Technology Corp. (PTE:TSX.V), which designs and produces fire prevention products. Its SmartBurner helps prevent cooking fires, the number one cause of fires in the home. “Smart burners incorporate thermostats to regulate the temperature of the burners within a safe range. In 2016, it expanded its multi-residential sales channels to strengthen its first-mover advantage in this market and realized EBITDA of $1.7M (up143% Y/Y). Management expects continued strong revenue growth of ~50% in 2017,” writes Afzaal.

UGE International Ltd. (UGE:TSX; UGEIF:OTC) is also profiled on the Watch List. The firm offers cheaper solar energy with no upfront costs to commercial customers. “UGE prereleased Q4/16 revenues of US$3.5M compared to cumulative revenues of US$2.5M over prior four quarters as it digested the acquisition of Endura (an EPC [Engineering, Procurement & Construction] firm). With integration complete, UGE is forecasting sharp revenue growth in 2017 based on its 12 to 18 months contracted backlog of US$35M,” comments Afzaal.

Ecosynthetix Inc. (ECO:TSX) made the Watch List for the second time. The company uses a bio-based polymer to replace formaldehyde in wood composites. The EPA has finalized a regulation to limit formaldehyde in wood products. Afzaal writes that EcoSynthetix is in “advanced stage industrial trials with more than five of the industry’s largest wood panel manufacturers in a fragmented market. It aims to secure 7 to 10 commercial contracts in 2017 which represents potential annual revenues of ~US$20M.”

Electrovaya (EFL:TSX) is also on the list for the second time. In 2015, the company acquired a German lithium-ion …read more

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