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CHAR Technologies Closes $6 Million Private Placement

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CHAR Technologies Ltd. (TSX Venture Exchange: YES) recently announced it has raised CDN$6,000,000 in a non-brokered placement.

CHAR Technologies is an Ontario-based cleantech development and services company, specializing in high temperature pyrolysis, converting woody materials and organic waste into renewable gases and biocarbon.

Andrew White, CEO, CHAR Technologies Ltd.

“We were very pleased with the overwhelming interest and exceptional investor support in the offering which had substantial demand beyond the placement size. We had significant institutional participation and interest,” said Andrew White, CEO. “The proceeds will not only strengthen our financial position but will also enable us to capitalize on the growing number of opportunities emerging in the Clean Tech sector for our products and technologies.”

CHAR intends to use the net proceeds of the Offering primarily for working capital needs with anticipated contracts, project development activities and investment in technology initiatives.

About CHAR Technologies

CHAR Technologies Ltd. is a cleantech development and services company, specializing in high temperature pyrolysis, converting woody materials and organic waste into renewable gases (renewable natural gas and green hydrogen) and biocarbon (activated charcoal “SulfaCHAR” and solid biofuel “CleanFyre”). Additional services include custom equipment for industrial water treatment, and providing services in environmental compliance, environmental management, site investigation and remediation, engineering and resource efficiency.

GFL Environmental Announces US$835 million Acquisition of Assets and Expansion of U.S. Footprint

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GFL Environmental Inc. (NYSE andTSX: GFL) (“GFL” or the “Company”), a Canadian-headquartered environmental services company, recently announced that it has entered into a definitive agreement to purchase a portfolio of vertically integrated solid waste collection, transfer, recycling and disposal assets (the “Acquisition”) for an aggregate purchase price of US$835 million.

The assets to be acquired by the Company, which include 32 collection operations, 36 transfer stations and 18 landfills supported by 380 collection vehicles across 10 U.S. states, represent substantially all of the divestiture assets expected to result from the previously announced acquisition of Advanced Disposal Services, Inc. (“ADS”) by a wholly owned subsidiary of Waste Management, Inc. (“WM” and such transaction, the “WM-ADS Transaction”). The acquired assets are expected to generate annualized revenue of approximately US$345 million.

Strategic Benefits of the Acquisition

The acquired assets are expected to support GFL’s continued organic growth extending its reach into new and adjacent markets and forming a base to pursue synergistic tuck-in acquisitions. GFL expects that the Acquisition will significantly expand its U.S. footprint while creating an opportunity to realize meaningful synergies and earnings accretion. The Acquisition is expected to:

  • Expand GFL’s Geographical Reach. The Acquisition provides GFL with an attractive opportunity to extend its geographical reach into the U.S. Midwest, through a network of vertically integrated assets with a strong regional market presence in the State of Wisconsin.
  • Provide a Complementary Asset Network. The Acquisition brings a high-quality, complementary asset network and customer base to GFL’s existing operations in the States of MichiganGeorgiaAlabama and Pennsylvania.
  • Improve Operating Margins. WM and GFL will enter into a reciprocal 5-year disposal arrangement that will provide the Company with competitive, stable and predictable pricing and disposal terms.
  • Create Long Term Shareholder Value. The Acquisition reinforces the Company’s goal of creating long term equity value for shareholders. The high-quality portfolio of acquired assets coupled with the experienced management team joining GFL are expected to be immediately accretive to free cash flow and provide opportunities for the Company to continue to pursue its growth strategy.

“Even during these unprecedented times, we continue to successfully execute on our growth strategy of pursuing strategic and accretive acquisitions.  This transaction presents GFL with a unique opportunity to significantly expand our U.S. footprint through the acquisition of a high quality, vertically integrated set of assets in both our existing and adjacent fast growing U.S. markets,” said Patrick Dovigi, the Founder and Chief Executive Officer of GFL. “We are excited to welcome over 900 employees of WM and ADS to the GFL family and are confident that we will continue to offer excellent customer service to our expanded customer base.”

Timing and Approvals

The Acquisition is subject to certain customary closing conditions, including approval by the U.S. Department of Justice and the closing of the WM-ADS Transaction. The Acquisition is not subject to any financing conditions. Closing is expected to occur in the third quarter of 2020, following the WM-ADS Transaction.

Financing of the Acquisition

GFL is well positioned to fund the Acquisition with its strong balance sheet and proven access to capital markets. The Company currently anticipates funding the Acquisition using a combination of capacity under its revolving credit facility and cash on hand but will evaluate other longer-term strategic and opportunistic financing opportunities as they present themselves.  Following completion of the Acquisition, GFL expects to maintain its current credit rating profile and leverage within previously stated ranges.

Investment Firm High on Specific Waste Industry Company Stocks during COVID-19 Pandemic

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The Motley Fool, a multimedia financial-services company, recently recommended two waste management companies for dividend-minded investors during this current tumultuous time.

Waste not, want not

One stock the Motley Fool is high on is Waste Connections Inc. (TSX:WCN)(NYSE:WCN).  The Motley Fool basis its assessment on the company on its view that waste disposal services will remain relevant whether the economy is booming or coming to a grinding halt.  No matter how bad things get, the waste business needs to continue its operations.

The Motley Fool stated that, in its opinion, Waste Connections remains a safe dividend stock because people need the company’s services in a time where most businesses are indefinitely closed. Waste Connections will likely see a decline in its revenue since its industrial and commercial clients are not running their businesses. Still, its residential clients will require waste management.

The company reported $1.54 billion in operating cash flow for fiscal 2019. It used the excess cash for $400 million in acquisitions in 2019. It has planned $500 million in acquisitions planned for 2020. While the recession might slow down its growth, the stock is likely to earn a substantial revenue.

As of mid-day April 22nd, Waste Connections stock was trading for $120.77 per share on the TSX, up 14.7 percent from its price a month earlier. The Motley Fool’s assessment is that it does not offer you a juicy amount in terms of dividends, but it has a reliable 0.91% dividend yield. It also has a respectable dividend growth streak of nine years.

Waste Management

The Motley Fool also considers Waste Management (NYSE: WM) a safe buy at during the current COVID-19 pandemic. The company provides essential services in waste management and recycling. In the view of Motley Fool, Waste Management is recession-proof because it will continue to see strong demand for its services throughout the business cycle. And if it’s one thing that investors can expect from the stock, it’s consistency; during the past six quarters, only once has quarterly revenue fallen below $3.8 billion. Its profit margin is also normally above 10%, falling below that threshold only twice in the past 10 quarters.

Currently, shares of Waste Management are trading at around 23 times earnings and 19 times future earnings. The stock also pays a quarterly dividend of $0.545 that, as of recently, yields 2.4% annually. Waste Management announced its plans to increase the dividend in December; it’s the seventeenth straight year that the company has done so. The company’s President and CEO Jim Fish called dividend payments Waste Management’s “top priority for capital allocation after we invest in the business to drive long-term profitable growth.”

In summary, the Motley Fool considers the stock to be near its low, offering a good and reliable payout, Waste Management is a solid pick up today for long-term investors.

Foolish takeaway

It is the assessment of the Motley Fool that there is no telling how long it will take for the pandemic to diminish and the economies of recovery. In uncertain times, a bit of stability and reliability counts for a lot.

Waste Connections might not have a terrific dividend yield, but it is a stock that offers reliability and an excellent dividend growth streak.

Waste Management can help you earn reliable passive income and protect your capital during the recession.

 

Waste Management Workers in Southwestern Ontario get Big Wage Boost

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Unionized workers of CLAC Local 519 recently ratified an agreement with Waste Management of Canada Corporation (Lambton County Landfill Division) in which the eighteen employees of Waste Management Canada Corporation will be getting wage increases ranging from 15.5 to 6.5 percent over the next three years. The wage increase is retroactive to June of last year and includes a $1,000 signing bonus.

Lambton County is located in southwestern Ontario and has 126,000 residents.  It is bordered by Lake Huron to the north and the St. Clair River to the west.  Waste Management of Canada Corporation owns and operates the Twin Creeks Landfill in Watford and the Waste Management Transfer Station in Petrolia, both in Lambton County.

The workers are represented by that Manufacturing, Transportation & Allied Workers Union, CLAC Local 519.  CLAC is a union that was founded on the belief that people, businesses, and work communities flourish when workplaces are based on cooperation and mutual respect.

“Bargaining for the new contract was a long process,” said CLAC representative Ryan Griffioen in a press release. “But in the end the members are happy with the result. This agreement provides them with excellent monetary increases in the face of uncertainty.”

Emterra Environmental wins waste collection contract for Oxford County, Ontario

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Recently, municipal officials from Oxford County (a rural municipal county of 111,000 in southwestern Ontario) awarded Emterra Environmental a five-year  contract for curbside garbage and recycling pickup.  The contract also includes two one-year extension options.  The value of the contract is $2.8 million a year, plus and addtional $703,000 for the processing and transfer of materials.  Other vendors that bid on the curbside collection contract were Green for Life Environmental and HGC Management Inc.

The transfer of service providers from HGC Management Inc. to Emterra Environmental is scheduled for May 4th.  Under the contract, the County will stay on its current five-day garbage pickup and recycling scheduled.

With the new contact approved, Emterra will move to purchase new fleet equipment and have a used fleet collect until September.

The change in companies also brings new collection routes to some Oxford communities.  Also, plastic film products such as plastic bags, plastic wrap or film packaging, and Styrofoam products will not longer be accepted in recycling.  Large Styrofoam drop-off will continue to be available at County recycling centres.

 

 

B.C. Recycling Start-up Receives $1.68 million from SDTC

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Sustainable Development Technology Canada (SDTC) recently announced funding of fourteen cleantech and environmental projects across Canada. The total amount of funding granted to the 14 start-up companies from SDTC is $46.3 million. The funds, which must be matched by private investment, will be used for commercial development by each company.

One of the companies receiving funding is RecycleSmart Solutions based in British Columbia. The company is receiving $1.68 million from SDTC for a project to decrease the driving distance of garbage collection trucks and the amount of garbage destined for landfill sites. 

RecycleSmart manufactures and installs smart sensors in waste bins, providing details about bin contents and contamination. This information helps reduce unnecessary waste collection and allows waste management companies to reduce the amount of trash destined for the landfill.

Leah Lawrence, President and CEO, Sustainable Development Technology Canada, stated at a news conference to announce the funding, “Canadian cleantech entrepreneurs are tackling problems across Canada and in every sector. I have never been more positive about the future. SDTC remains committed to helping companies accelerate their clean technologies, from seed to scale-up.”

Jaclyn McPhadden, RecycleSmart CAO and Co-founder

Jaclyn McPhadden, RecycleSmart, Chief Administrative Officer stated, “The support from SDTC is an incredible opportunity to accelerate the growth of RecycleSmart by fuelling our sensor technology development program. We are honoured to receive this investment, which will increase the rate at which RecycleSmart can move from R&D to commercialization in the next two years.”

About RecycleSmart Solutions

RecycleSmart Solutions develops, and then implements, waste management programs for organizations that achieve financial, environment, and operational goals. The company uses a holistic approach that delivers guaranteed results.

RecycleSmart Solutions has a team of waste and data scientists, engineers, and program designers that develops and implements a waste management program that results in a 10% Cost Savings (minimum) commitment to a client organization.

The company then utilizes its Waste Wizard App that provides an organization with information on collection schedule, invoice details, and other information.

In one case, First Capital Realty, a developer and manager of retail-focused properties, engaged RecycleSmart Solutions to assist in the management of its waste and recycling programs in Edmonton. RecycleSmart Solutions did the following:

  • Installed sensors on all waste and recycling containers;
  • Monitored fill levels of containers on a monthly basis and reduced services when possible;
  • Managed their waste and recycling services;
  • Reduced costs by negotiating new rates with the waste haulers’ and
  • Handled issues with missed pickups/overflowing bins including site cleanups

The result of the technology and management solution resulted in 24 percent savings in operational costs for First Capital Realty at its Edmonton location.

About SDTC and the Canada Cleantech Market

Canada is number one in the G20 for clean technology innovation. In January 2019, 12 Canadian companies were recognized on the 2019 Global Cleantech 100 list. Currently, clean technology employs more than 180,000 Canadians.

The clean technology market is set to exceed $2.5 trillion by 2022.

Sustainable Development Technology Canada is an arm’s-length foundation created by the Government of Canada to support Canadian companies with the potential to become leaders as they develop and demonstrate new technologies to address some of our most pressing environmental challenges.

Micron Waste suspends development of cannabis waste treatment technology

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Micron Waste Technologies Inc. (CSE: MWM, OTC: MICWF), an organic waste technology company, recently announced that it has suspended development of the cannabis-industry waste digester system in light of changing market conditions. The company stated that a longer product development was required to reach the commercialization stage of the cannabis waste treatment system.

In its news release, the company stated that the cannabis industry is not currently funding new technologies and this has resulted in a lower outlook on the commercial viability of the company’s Cannavore™ system.

The CannavoreTM is an integrated cannabis waste shredder, microbial digester, and water treatment system. It is designed to operate outside of the facility and has safeguards to prevent biological contamination in the cultivation facility.

In 2017, Micron Waste Technologies signed a non-binding agreement with Aurora Cannabis under which Micron would install an organic waste digester unit at one of Aurora’s growing facilities and where the companies would work to optimize the technology for the cannabis industry.  Under the agreement, Aurora (TSX:ACB) would have the option to buy additional units for its other facilities at a preferred price once the optimization program is complete and is proven viable.

The Company will continue to focus on developing its Organivore™ organic food waste digester and effluent treatment systems.

The company also announced it is actively seeking to leverage the company’s approximately $3M working capital and 2.5M shares of Palladium One Mining Inc. to review potential value-enhancing strategic acquisitions.

BIOREM Announces Joint Venture in China

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BIOREM Inc. (TSXV: BRM), an Ontario-based clean technology company focused on air emissions control, recently announced that it has entered into a joint venture with a Chinese company to establish Zhongjia Clean Technology (Wuhu) Co., Ltd in China.  The joint venture is another phase in BIOREM’s growth and development strategy for the country.

“We are pleased to take this next step in developing the Chinese market for our innovative brand of air emission abatement solutions.” said Derek S. Webb, President and Chief Executive Officer. “We pride ourselves in the speed and quality of our response to customer needs, and Zhongjia will provide the ideal vehicle to replicate that level of service to our important customers in China.”

The initial focus of the joint venture company will be to sell and service customers in need of air abatement services.  The company will provide a wide range of physical, chemical, thermal and biological solutions in China’s industrial heartland.

“While Zhongjia will provide greater coverage for BIOREM’s sales efforts in China,” continued Webb, “this Joint Venture is part of a wider effort for economic cooperation in the areas of technology transfer and cleantech innovation development between Canada and China.”

About BIOREM Inc.
BIOREM is a leading clean technology company that designs, manufactures and distributes a comprehensive line of high-efficiency air emissions control systems used to eliminate odors, volatile organic compounds (VOCs), and hazardous air pollutants (HAPs). The company has more than 1500 installed systems worldwide. Additional information on BIOREM is available on our website at www.biorem.biz.

GFL and American Waste Announce Merger

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GFL Environmental Inc. , headquartered in Vaughan, Ontario, and American Waste recently announced that they have entered into a definitive agreement for the acquisition by GFL of American Waste’s solid and liquid waste businesses in Michigan and Pennsylvania. The closing of the transaction is subject to customary regulatory approvals and is expected to be completed in February 2020.

GFL says in U.S. regulatory filings that the deal includes US$360 million in cash plus US$20 million in non-voting shares.

Founded in 1971 as Northern A -1, American Waste and Northern A-1 is a vertically integrated provider of environmental solutions for a broad base of solid and liquid waste customers. The current owners of American Waste, Michael and Edward Ascione, will be joining GFL and will continue to manage the American Waste businesses.

In a news release, Eddie Ascione stated; “Mike and I carefully chose to merge with GFL because of our similar lines of business, GFL’s down to earth senior management team and decentralized operations approach. We believe American and Northern A-1’s expertise in serving both our solid and liquid waste customers is a great fit with GFL’s focus on delivering comprehensive environmental solutions.”

American Waste is one of several acquisitions GFL has made in recent months, including County Waste of Virginia, AGI Group of Companies, and the Soil Safe group of companies.

Greenlane Renewables Secures New $8.3 million Landfill Gas upgrading Project

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Greenlane Renewables Inc. (TSXV: GRN), headquartered in British Columbia, recently announced that its wholly-owned subsidiary, Greenlane Biogas North America Ltd., has secured a new $8.3 million (US$6.3 million) biogas upgrading contract with a customer in California, whose name is being withheld at this time for confidentiality reasons. Engineering work will begin immediately on the California-based landfill project. Order fulfilment will begin immediately upon completion of permitting and approval of submittals by the customer, expected by early to mid 2020, with delivery expected to occur within approximately six months of commencement.

The facility is expected to process 1,600 standard cubic feet per minute of landfill gas to produce ~97% pure biomethane, or approximately 380,000 gigajoules (GJ) (or 360,000 million British Thermal Units (MMBTU)) annually, of clean Renewable Natural Gas (“RNG”) for direct injection into the local gas distribution network owned and operated by SoCalGas, the largest natural gas utility in the United States.  In addition, the residual off-gas, a byproduct of the biogas upgrading process, will be blended with natural gas to generate power for on-site facilities and processes. This project is designed to achieve stringent SoCalGas Rule 30 quality specifications and may be the first of its kind to work in conjunction with power generation to target 100% methane recovery. To date, there are no projects upgrading landfill gas into RNG for injection into SoCalGas’ network.

Greenlane’s Pressure Swing Adsorption (PSA) technology solution was selected for this project based on several criteria, including reliability, overall life-cycle cost, and ability to work seamlessly with other processes. Biogas upgrading is a process through which trace impurities in the biogas stream are removed and carbon dioxide is separated from methane (CH4) to produce pipeline-spec biomethane suitable for injection into the natural gas grid and for direct use as vehicle fuel.

“This project is a great opportunity to showcase Greenlane’s advanced and reliable technology,” said Brad Douville, President & CEO of Greenlane. “Our solution is targeting 100% methane capture from the landfill site. Recovered landfill methane will be upgraded and then piped directly into SoCalGas’ natural gas grid, meeting their stringent Rule 30 gas quality standards with the residual off-gas blended with natural gas for onsite power generation. This is a real win-win for the environment and generates attractive economics.”

About Greenlane Renewables
Greenlane Renewables is a provider of biogas to renewable natural gas (RNG) upgrading systems. The company has over 30 years industry experience, patented proprietary technology, and over 100 biogas upgrading units supplied into 18 countries worldwide, including the world’s largest biogas upgrading facility.