Canadian Company Closes Major Sales in Furtherance of Green Building Initiatives

ATI Airtest Technologies Inc. (AAT:TSX.V; AATGF:OTC) has news related to the closing of two major sales deals. ATI sold a number of carbon dioxide sensors to a client and closed a separate sale to a chain of specialty food stores in Ontario.

ATI Airtest Technologies Inc is a green technologies company that specializes in Demand Control Ventilation systems. The technology it offers increases efficiency and energy savings. The president is Lorne Stewart, and Ted Konyi is the CEO.

"we continue to have success providing sensors to a wide range of OEM customers. This business is a nice addition to our growing number of mechanical contractors and HVAC (heating, ventilation and air conditioning) wholesalers that represent the bulk of Airtest's sales efforts."

ATI Airtest Closes Major Deals

ATI Airtest sold 1,200 carbon dioxide (CO2) sensors to an original equipment manufacturer (OEM) customer. Airtest reports that this is one of many OEM customers that the company does business with. Lorne Stewart, Airtest's president, said "we continue to have success providing sensors to a wide range of OEM customers. This business is a nice addition to our growing number of mechanical contractors and HVAC (heating, ventilation and air conditioning) wholesalers that represent the bulk of Airtest's sales efforts."

ATI Airtest Technologies Inc. has reached an agreement with a specialty food store group in Toronto, Canada. The company will install equipment at the stores, which will be monitored for a two month period after installment. The installation project will be handled by Star Energy, a partner of Airtest. The project will encompass all store locations in the area, of which there are over thirty. According to Lorne Stewart, the company president, "We have been working with the CEO of the food stores chain and Kuldeep Saxena of Star Energy to develop this pilot over the last month… we are anticipating that there will be subsidies available from Save On Energy and Enbridge to support the cost of installation and reduce payback period. This will be a great reference site for the company in Ontario."

Why HVAC Technology?

According to the Air Conditioning Contractors of America, the HVAC industry in the US is set to increase to US$35.8 billion by 2030, with a compound annual growth rate of 9.7% from 2019 to 2025. This increase is being driven by higher demand for energy efficiency as the country strives to reach new energy efficiency standards. The southern region of the country is expected to see the largest increase in demand, where air conditioning is a necessity, and the construction industry has grown by 6% from 2017 to 2018.

In the broader North American market, the HVAC industry is projected to grow to 62.31 billion by 2029. COVID-19 also served to boost the market as indoor air quality became a large feature of the conversation surrounding infection prevention. Green building practices have also been a feature of the Canadian market. The Canada Green Building Council's energy efficient building initiatives to reduce greenhouse gas emissions were a main feature of 2019's budget. These green building initiatives require an energy efficient heating and cooling system.

Additionally, smart system integration has been a feature of new HVAC technologies. In addition to providing clients with a more direct method of control over their systems, smart technology continues to increase efficiency and sustainability as the digital system is able to adjust to environmental data.

Catalysts

ATI Airtest has a number of short term catalysts coming up. ATI has many pilot installations coming up within the next few months, and the company anticipates that this could represent orders amounting to tens of millions of dollars over the next year. The company hired a new president that is focused on sales and has experience in the HVAC industry. Rising energy prices and ESG mandates that require reduced carbon emissions have caused various industries to start searching for more innovative technologies.

Ownership and Share Structure

ATI Airtest has a market cap of about US$2 million. There are 202 million shares, 72 million warrants, and 7.5 million options.

Management and insiders own about 160 million shares. Robert Bruce Mebruer owns 12.26%, George Burton Graham owns 2.55%, and Lorne Kendall Ogden Stewart, the president of ATI Airtest, owns 0.45%. The company reports no significant investment from institutions and no strategic investors.

ATI Airtest has about $300k CDN in the bank, with a burn rate of $140k CDN, and about $30k net monthly profit.

There are very few potential sellers, and no warrants over hang until $.05 per share.

The company does not work with any IR Firms or influencers. Christ Temple with the National Investor provides news coverage and analysis of ATI Airtest.

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