Used by permission from the company:
UGE International (UGEIF:OTCQB) (TSX-V:UGE)
Current Share Price: C$0.52
Shares Outstanding: 36 million
Market Capitalization: C$18.7 million
Revenue Run-rate: ~C$ 32 million for 2017
52-Week Range: C$0.27 – C$0.70
Cash: ~C$ 2.3 million (9/30/2016; cash flow positive since this date)
UGE International is one of the world’s leading commercial solar companies. With dual headquarters in New York and Toronto, UGE is a leading player in Canada and the eastern US, as well as select key international relationships. UGE’s commercial solar platform includes sales & marketing, engineering/procurement/construction, and project financing, to deliver cheaper energy through rooftop solar systems at no upfront cost to its clients.
Costs of distributed solar have fallen rapidly over the past 10 years, with the cost of solar panels themselves falling over 90%. In each of UGE’s target markets, its clients immediately save money by going solar, and by 2018 Deutsche Bank projects that distributed solar will be cheaper than the electricity grid in most global markets. The economics of distributed solar have just recently passed grid parity, meaning the commercial solar sector has only recently begun to take off, with less than 1% market penetration in the US and far lower penetration in other markets, showing the massive opportunity ahead for the industry.
UGE’s team is led by industry veterans Nick Blitterswyk, Scott Matthews, Robert van Duynhoven, Mateo Chaskel and Jimmy Vaiopoulos. Its board of directors includes: Chris Varrone, the former Chief Strategist of Vestas, the world’s largest wind company; Nick Parker, the founder of The CleanTech Group; Joyce Ferris, founder of one of the first IPPs and recently named one of the top 10 women in energy; and Michael Doolan, former CFO of TSX-listed NeoMaterials and Falcon Bridge and NYSE-listed MolyCorp. Together, UGE’s leadership is building a global leader in commercial solar, both through organic growth and through acquisitions. Its leadership position in Canada is the result of acquiring the number one player in Ontario, Endura Energy, showing an ability to successfully scale through acquisition, in addition to its high organic growth.
The company expects to be profitable in 2017 and beyond, becoming the first publicly traded distributed solar company to cross that threshold, while growing over 4X in 2017 after posting its strongest quarter in company history in Q4’16. UGE has a backlog of over C$45m, and a pipeline of more than C$200m, showing a credible pathway to annual revenue of $100m within two years.