FuelPositive Corporation, a leading Green Ammonia company, (TSX.V: NHHH) (OTCQB: NHHHF) (“FuelPositive”) provides a recap of 2023 Milestones Achieved, Highlights for 2024, as well as details on securing further financing and the closing of the First Tranche of $1,350,000, in an active private placement.
The ammonia industry is currently one of the world's most polluting sectors. Grey ammonia production depends on fossil fuels and follows the oil industry as one of the most carbon-intensive processes.
Grey ammonia is produced in massive, complicated, centralized plants and must be transported worldwide to the end-user through complex and polluting distribution networks. 80% of ammonia is used today as essential nitrogen fertilizer on farms. In light of global conflict, climate change and shifting politics, this antiquated mode of grey ammonia production and distribution is unsustainable, which creates uncertainty in supply and price for the end-user, mainly farmers.
FuelPositive's patent-pending, 3rd party validated breakthrough technology supports farmers' independence and needed change. The Company’s modular, containerized, Green Ammonia on-site system enables farmers to produce their own fertilizer and fuel, simply powered by green electricity. This decentralized solution is scalable and provides farmers with price and supply certainty.
By producing Green Ammonia on site, FuelPositive customers eliminate up to 4 tonnes of CO2e emissions per tonne of Green Ammonia produced!
In short, FuelPositive technology has the potential to create a lasting positive impact on farmer's health and finances and ultimately, on global food security.
2023 Summary:
First System Milestones:
- FuelPositive is Making Ammonia:
- FuelPositive FP-300: the first decentralized, containerized, commercial-scale Green Ammonia system in the world produces ammonia.
- Third-party validation:
- testing laboratory, Ortech Consulting Inc., confirms FuelPositive’s data
- FuelPositive achieves Independent Certification of Pure Anhydrous Ammonia Output
Global IP Protection and Additional IP Development:
- Throughout 2023, the Company filed additional global patent protection for its core technology and has developed a robust and growing portfolio of additional and complementary technologies, which are in various stages of the patent protection process.
Transitioning to Revenue.
Sales Process and Pipeline:
- FuelPositive announced that it is ready to accept its first 30 deposits and orders for its FP300 system.
- This initial group of orders would represent approximately $30 million of gross revenue for FuelPositive.
- Operating cost assumptions (OPEX) have been confirmed and validated.
- Providing Performance Guarantees for initial orders.
- Since August 2022, FuelPositive has received interest in over 600 systems. 600 FP300 systems would represent over $570 million in gross income.
- Secured deposits will be announced.
- Meeting Demand:
- Moving into a new larger facility twelve thousand square foot manufacturing site to accommodate the production of the initial 30 systems in Waterloo, Ontario. Beginning activities on January 3, 2024.
- The Company expects to meet growing demand by building state-of-the-art, fully automated manufacturing facilities across Canada.
- Several government Agencies and Ministries have taken a keen interest in being involved in the various manufacturing plant projects.
Building a Great Team:
- New Strategic Independent Board Members Lenore Newman and Gord Ellis joined the Company.
- Hiring of key team members:
- Sales Development Specialist
- Engineer of Record
- Controller
- IT Manager
- FuelPositive won the esteemed Best Places to Work award in 2023 by Human Resources Director Canada, one of the world’s leading independent HR publishers.
- Fosters Pride and Engagement
- Attracts top candidates.
Growing Government Support:
- Company receives funding of $1.9 million through the Agriculture Clean Technology (ACT) Program, delivered by Agriculture and Agri-Food Canada (AAFC).
- Supports the building and testing of three Green Ammonia demonstration systems.
- Supports gathering of information needed to adapt its technology to the commercial needs of farmers.
- Each of the 3 systems will represent an improvement to the intellectual property and technological advancement over the previous system.
- Supports the Company in achieving its efficient and sustainable, large-scale production objectives.
Financing Milestones:
- As of December 1st, 2023, the Company has raised approximately $7,000,000 in Private Placement and Bridge Loan financings.
- Additionally, on December 15, 2023, the Company announced the closing of the first tranche of a non-brokered private placement (the “Offering”).
- The Company has issued 24,545,454 units (each, a “Unit”) for $0.055 per Unit, for aggregate gross proceeds of $1,350,000.
- Each Unit consists of one common share of the Company and one common share purchase warrant (each, a “Warrant”), allowing holders to purchase an additional common share for $0.07 until December 5, 2028.
- All securities issued in the first tranche of the Offering are subject to a statutory hold period until April 6, 2024, in accordance with applicable securities laws.
- No finders’ fees or commissions were paid in connection with the closing of the first tranche of the Offering.
- The Company intends to complete further tranches and will issue up to a total of 90,909,090 Units in connection with the Offering.
- The net proceeds from the Offering will be utilized for general working capital purposes.
- Additionally, on December 15, 2023, the Company announced that it has granted a total of 19,820,00 incentive stock options (the “Options”) to certain directors, officers, employees and consultants. The Options vest and become exercisable over a 24-month period, with one quarter of the Options vesting after six months and a further one quarter vesting every six months thereafter. The Options are exercisable to acquire an equivalent number of common shares of the Company at a price of CDN $0.05 for a period of 60 months.
2024 Objectives:
- Transitioning the Company from Pre-Revenue to Revenue Generation and Profitability
- 30% deposits on initial 30 systems
- Kick-off of new manufacturing facility
- Securing Second Tranche financing in current Private Placement
- New Key Strategic Position Announcements
- Ramp-up of Public Relations and Media Relations and Analyst coverage
- Delivery and commissioning of the first FP300 system in Manitoba
- Expanding Electrolyser Compatibility to optimize capital and operating costs.
- Expanding sales globally
- Expanding IP Development
- Kick-off of FP1500 manufacturing
- Significant demand for a single system capable of meeting the needs of larger farms and other end-user requirements.
- Expecting further non-dilutive Government funding commitments
Ian Clifford, CEO and Board Chair, commented: “We are extremely proud of our achievements thus far. And it is exhilarating to envision generating revenues in the range of hundreds of millions of dollars in the coming years for our shareholders. Even more encouraging is that this growth translates into healing our planet, which is what drives us all at FuelPositive.”
