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  5. GRN: Hi 5i team, Can you please comment on the recent 35M contract that been rewarded to the company? [Greenlane Renewables Inc.]
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Q: Hi 5i team,

Can you please comment on the recent 35M contract that been rewarded to the company? Will the news be a new catalyst to share price?

Thanks!
Asked by Kirk on October 31, 2023
5i Research Answer:

It is a good win for the company but it may not drive the share price much. GRN is still losing money, so a contract is of course better only if it can make money on it. GRN has lost money since inception, and margins on this contract may be low. Cash flow is also negative. GRN still had $16M cash as of June 30, more than half its market cap. But with the stock down 60% this year we would expect tax-loss selling pressure to be high, likely offsetting gains from this particular contract in the short term. Considering the tiny size of the company and negative momentum, caution is advised here. 

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