The Texas-based company is being listed as a Tier 1 Industrial, Technology, or Life Sciences Issuer, according to the company. Tier 1 is the exchange's premier tier, reserved for larger, more established companies.
ME2C Environmental will also continue to trade on the OTCQB Venture Market under "MEEC," as well. It's TSX-V share price Monday afternoon was CA$0.38, while it was being traded on the OTCQB for US$0.2945.
"Expansion into the Canadian market is occurring at the ideal time in our company's growth," said ME2C Environmental CEO Richard MacPherson. "Trading on the TSX Venture Exchange is an exciting milestone for our company and our shareholders as this large North American market will allow for increased momentum of strategic corporate growth initiatives that are currently underway."
The company develops and provides technology to control mercury emissions from coal-powered power plants. As coal is processed, it releases poisonous mercury gas through evaporation, which is released through smokestacks. ME2C Environmental's technology captures this harmful gas during the process, significantly reducing the amount of mercury emissions.
According to the International Energy Organization, coal accounted for more than one-third of total electricity generation when its use reached an all-time high in 2021.
In February, the Environmental Protection Agency reaffirmed the need for a rule that would limit the level of mercury and other harmful pollutants being emitted from power plants. ME2C's technology directly supports efforts of mercury emission capture.
"We stay long for the intermediate uptrend just starting" and that the MACD indicator shows "it has plenty of room to run," technical analyst Clive Maund wrote of the company.
Zacks Small-Cap Research analyst Steven Ralston also wrote that ME2C "should achieve strong double-digit topline growth in this year" and that he expects "revenues to increase by at least 35% in 2023."
The Catalyst: Looking Beyond North America
ME2C appointed a new Chief Financial Officer, Greg Powell, to support the listing. Powell is a Chartered Professional Accountant, Certified General Accountant, and Certified Fraud Examiner who has been a Fellow of the Association of Chartered Certified Accountants since 2012. He brings experience with both large and small-scale international operations in multiple sectors, including mining and technology.
"ME2C's existing presence in the Canadian market will be more fully rooted from the recent appointments of our New Brunswick-based CFO Greg Powell and new Director, Troy Grant, based in Nova Scotia," MacPherson said. "Gaining new shareholders both in Canada and in other international markets will provide ME2C with a stronger market position as we introduce our environmental technologies beyond North America."
ME2C is the "commercial extension of US$60 million of research and development" and has "worked with the DOE [Department of Energy], EPA [Environmental Protection Agency] and dozens of utilities across the U.S.A. to develop the best mercury emissions capture process available, known as the SEA® System or Sorbent Enhancement Additive system," according to its website.
The SEA® System can be tailored to each application as required, the company noted.
Consistently over the last couple of years, ME2C has shown at least 50% growth year-on-year, which is one of the strongest in the industry.
Irreversible Toxic Effects on Humans
Mercury has often irreversible toxic effects to humans and is harmful to wildlife and ecosystems, the United States Environmental Protection Agency noted. Developing fetuses and young children are most at risk.
Though a portion of mercury emissions can be attributed to natural occurrences in the earth's crust, human activity such as mining and fossil fuels combustion has led to "widespread global mercury pollution."
Once mercury has been disturbed and emitted into the air, it either lands in water or on land, where it's then washed into the water. At this point, certain microorganisms can turn it into the highly toxic form, methylmercury, which is then consumed by fish and other marine life. Most mercury exposure in humans comes from eating contaminated fish and shellfish.
It is estimated that more than 75,000 newborns in the United States may have increased risk of learning disabilities because of exposure as a fetus to methylmercury.
Streetwise Ownership Overview*
In 2018, the highest source of mercury globally was artisanal and small-scale mining, followed by the stationary combustion of coal.
As the world continues to use coal as a primary source of energy, it will become increasingly important to control mercury emissions to avoid an even greater risk of contamination and poisoning.
Ownership and Share Structure
Insiders own 32% of the company. The CEO owns 16%, the senior vice president owns 6.8%, Chris Greenberg owns 6%, and other managers and directors own less than 5%.
Alterna Capital, the company's primary lender, owns 12%.
ME2C has a market cap of CA$35.34 million and has 92.25 million shares outstanding, 61.52 million free-floating.
- ME2C Environmental is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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