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  5. GIP: Hi looking at two small caps at the moment. [Green Impact Partners Inc.]
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Q: Hi looking at two small caps at the moment. What are your thoughts on the news of the conclusion of the strategic review for NEO and news put out today on GIP's sale of its water, waste and recycling facilities and lead equity partner agreement for the Future Energy Park? thanks
Asked by Bryan on May 26, 2025
5i Research Answer:

The review lasted nearly a year. While the company would be attractive we think to many, it currently is a very politically-charged sector and the company's comments about its likely inability to conclude a deal we think make a lot of sense. Governments would have looked very closely and blocked certain buyers, we are sure. While maybe disappointing to some short term traders, the valuation, outlook and yield for the company still remain attractive. The GIP sale is quite significant at $53M, considering market cap of $82M. It also moves the company into a debt-free situation with some cash. The deal is conditional, and the company does remain in default on some debts, but if this closes it is certainly a big relief. The details on FEP are light, but certainly getting a lead order is very positive as well. We do not know the amount or the buyer but hopefully they have deep pockets. Either way, getting a marquee lead investor usually helps convince other investors to come on board.