OTCQB: PGTK - Pacific Green Technologies Private Placement

Bids are invited at $3.50 representing a ~9.0% discount to the prevailing price of the last 2months for up to ~4.5% of Common Equity [USD 7.5mio]

This is not advice. Details of this private placement are being communicated to you in your capacity as a professional investor with the capability to evaluate investment opportunities, and are independent of your personal circumstances. NJR Partners may earn a placement fee. Any advisory clients of NJR Partners in receipt of this information are invited to obtain independent advice and to clarify how any fee interacts with our advisory agreement. Links:

Company Website:
https://www.pacificgreentechnologies.com/
Investor Presentation (Scroll down):
http://www.pacificgreentechnologies.com/investors/
Investor Portal:
https://ir.pacificgreentechnologies.com/
Tech in animation:
http://www.pacificgreentechnologies.com/envi-marine/
Video Introduction:
http://www.pacificgreentechnologies.com/articles/snnlive-speaking-alex-shead-ld-micro-invitational-2019-bel-air-ca/
Fnancials at 31Dec18:
https://ir.pacificgreentechnologies.com/all-sec-filings/content/0001213900-19-002866/0001213900-19-002866.pdf

Pacific Green Technologies Inc (OTCQB: PGTK) has developed proprietary emission-control technologies to address the world’s need for cleaner and more sustainable energy and has applied this to marine engine emissions, coal power plant emissions and waste incineration. In partnership with China Power, Pacific Green's is enjoying a period of significant, persistent and growing global demand to meet increasingly stringent environmental standards.

Bids are invited at $3.50 representing a ~9.0% discount to the prevailing price of the last 2months for up to ~4.5% of Common Equity [~USD 7.5mio]


Invitation to an investor presentation
You are invited to attend an investor presentation with Alex Shead, Director Pacific Green Technologies at RACA 89 Macquarie Street Sydney.

  • Noon, Monday, July 1st
  • Noon, Tuesday, July 2nd
  • Noon, Wednesday, July 3rd

Please expect an invitation by separate mail. Please contact me on 0418266361 to arrange an alternative time if these are not convenient


Investment highlights and considerations:

  • Global demand for clean emission technology is also mandated by regulators  
  • The International Marine Organization mandates sulphur emission caps in shipping commence (in 200 days) on 1st January 2020 (IMO 2020). Ship owners have the choice of switching to expensive low sulphur fuel or continuing to use cheaper high sulphur fuel with Pacific Green technology
  • Pacific Green has patented designs that are simple and optimise efficiency
  • The PowerChina SPEM (49.9%) and Pacific Green Technologies (50.1%) joint venture is one of few proven entities able to scale operations worldwide and meet demand
  • The combination of design efficiency, operational scale and  access to capital via the joint venture present a competitive advantage and operational leverage
  • In 2H 2018, Pacific Green announced orders of ~USD 180mio due to this combination of design simplicity and efficiency and the manufacturing capability and capacity of Power China
  • The resultant economics for the client are compelling. Investment payback is estimated at ~12-18mths within an expected life of ~12-20 years.
  • Pacific Green is cash positive and largely self-funding via customer deposits and Power China terms that mirror contract terms and payments
  • Market Capitalisation at  ~USD 170mio is less than 1X the announced gross order book
  • Liquidity on the junior OTC exchange is poor. For example, the 30 Day Avg Volume is 3,267 shares (Bloomberg 26Jun19) or $12k per day. Management is exploring alternative listing options. Probably NASDAQ
  • The 52-week price range is US$0.51- $4.25. Recent price increases have occurred on low volume but are likely to reflect the disclosure of significant, persistent and growing demand from a range of customers
  • The impact of disclosed orders are evident in positive movements in balance sheet items (Work in progress, Cash and Customer deposits) which reflect the US revenue recognition accounting standards
  • Market analysis of scrubbers vary between ~8,000 - 10,000 to be fitted in the next 3-5 years representing an addressable market of USD ~$15.0 - $20.0 billion
  • In addition, Pacific Green and Power China plan the distribution of coal and waste clean technology throughout China and SE Asia and the exploration of other clean technology opportunities

Motivation for placement

  • The seller is a long-standing and supportive investor who is now disengaged and wishes to apply the proceeds of the sale of ~80% of his holdings to the purchase of a house and retirement.
  • Pacific Green management believe broadening the investor base to professional investors ahead of the main board listing is likely to be positive for new investors and increase the potential for a re-rating


NJR Disclosure of interest

  • NJR Partners will receive the equivalent of 0.10c per share as a placement fee
  • Fee payable in PGTK common stock on the same terms as the private placement


Timeline and process

  • Firm indications invited immediately via email  nigel.renton@njrpartners.com and alex.shead@pacificgreen.tv
  • Closing bids Midnight (Sydney) Monday 8th July
  • Payment for value Monday 15th July
  • Pacific Green Technologies lawyer will prepare the Sale Purchase Agreements and proceeds will be paid to his trust account and released once the shares are issued in the buyers' names.
  • Share purchased via this private placement will not be able to be sold for six (6) months