Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTCMKTS) has done it again! After insiders filled a private placement above market price, Jericho has led a seed investment into Supercritical Solutions Ltd.
Beyond the cool tech, which I’ll tell you about later, why should you care?
Last January, insiders exercised warrants which had about a year and a half until expiration and SEDI records show that they didn’t even sell shares to do it. Jericho then used those funds to acquire Hydrogen Technologies and their zero-emissions Dynamic Combustion Chamber boiler technology. This ran their stock from 34 cents all the way up to $1.22, almost four times higher.
If you aren’t familiar with the burgeoning hydrogen industry, you need to know that the market to produce and utilize green hydrogen as a fuel, feedstock, and means of energy storage is slated to reach a total addressable market size of $2.5 trillion per year by 2050. This, along with the environmental benefits, is how Jericho became part of my PennyQueen portfolio. I look for companies that have the technology and support needed to enter these growing markets and carve out territory in the frontier of our energy transition.
Since I first bought shares of Jericho this past November, they have gone from a clean energy company with great technology to a clean energy company with sales! Jericho’s technology was one of the four winners in the UK government’s Green Distilleries Competition. Supercritical was another.
Why is Supercritical’s technology important? If you want green hydrogen (clean hydrogen), you need to produce it with an electrolyzer. Supercritical has developed a whole new class of electrolyzer with a proprietary membrane-less design allows it to exploit the benefits of supercritical water, creating hydrogen at over 200 bar of pressure. Regular electrolyzers usually produce hydrogen at 10 to 40 bar. This is a major bottleneck in green hydrogen production.
"After being beaten down alongside the majority of Canadian small caps, Jericho is currently sitting at a mere 65 cents and near a double bottom, it is primed to move."
Supercritical’s tech could very well unlock the needed efficiencies to make the storage of green hydrogen financially feasible, this would also eliminate a major barrier in utilizing hydrogen for transportation.
This acquisition will give Jericho around a 10% stake in Supercritical Solutions and give them access to their technology.
I was taught to watch what the smart money is doing, and there are two great examples here. First, there are the insiders, who own upwards of 60% of the company and keep buying more at higher and higher prices. Then there is Chris Sacca, a brilliant investor, who became a billionaire by picking winners early. His venture capital fund made seed and early stage investments in Twitter, Instagram, Uber, and many other very successful companies. Now he has come out of retirement on a mission to save the planet. While Jericho is leading the investment into Supercritical, Sacca’s new fund Lower Carbon Capital is investing, as well as New Energy Technology. This is to me the equivalent of LeBron James playing on your high school basketball team, your chances of winning the state championship are definitely going up.
After being beaten down alongside the majority of Canadian small caps, Jericho is currently sitting at a mere 65 cents and near a double bottom, it is primed to move. I expect that the inroads made during the Green Distilleries Competition and the publicity from their win there should also provide them with several more customers in short order.
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PennyQueen Disclosure: I own shares of Jericho Energy Ventures Inc. I have not and will not be compensated for this report in any way. I write reports on my favorite picks; this is meant to be educational and not investment advice as I am not an investment advisor, just a mom on a mission to make the world better and make money along the way.
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