Let's get to it because the market's open and there's absolutely zero time to waste.

SmallCapFirm

Could Nasdaq Profile (CRKN) Be Fueled Up For A Breakout Due To 5 Potential Catalysts? (Low Float)

Dawson James Securities $8.50 Price Target

Low Float Profile: Yahoo Finance Reports 12.01Mn Shares

September 29th

SCF Readers,

Let's get to it because the market's open and there's absolutely zero time to waste.

Speaking of zero time to waste, climate change... Woof.

I'm not going to beat around the bush. Climate change is happening and if we don't take a stand and attempt to address it with meaningful changes, it could be game-over sooner than later.

With the US rejoining the Paris climate agreement in 2021, it's a step in the right direction and could create significant opportunities within the clean/green sectors/markets.

One such market I've been monitoring closely is the Smart Glass Market, set to potentially reach $10Bn by 2025, according to Adroit Market Research.

Within that sector I've locked on to a company that's currently flying under-the-radar and could be extremely undervalued from current trading levels.

For today, Wednesday September 29th, there is one Nasdaq profile to have at the top of your watch-list:

Crown ElectroKinetics Corp. (CRKN)

Crown is a smart glass technology company and the creator of DynamicTint - We Make Your Glass Smarter™. Originally invented by Hewlett-Packard (HP, Inc.), the company's technology allows any glass surface to transition between clear and dark in seconds. With applications to a wide array of windows, including commercial buildings, automotive sunroofs, and residential skylights, the company partners with leading glass and film manufacturers for mass production and distribution.

At the core of their technology is a thin film that is powered by electrically-charged pigment which not only replaces common window tints but is also a more sustainable alternative to traditional window treatments. With its unique ability to be retrofitted to existing glass, DynamicTint™ offers myriad benefits related to reducing carbon emissions. The company is supported by a robust patent portfolio.

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Competitive Advantages For DynamicTint™

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Benefits of DynamicTint™

Affordable: Roll-to-Roll manufacturing, inexpensive materials, and lower energy costs to operate

Low Energy Requirements: Low voltage and can be powered by solar strip, battery, or existing electrical infrastructure

Retrofit: Insert application eliminates the need to replace single pane windows with dual pane windows

Speed: Transition time is typically under ~2 seconds

Color Neutral: Pigment is designed to be color neutral and will not affect the hue of what is viewed through the window in the dark or tinted state

Sustainable Target Market: Reducing waste, reducing energy consumption and using renewable energy

Target Market – Retrofit Opportunity

  • 5.6M existing commercial buildings in the U.S. representing approximately 87 billion of rentable square feet.(1)
  • Real estate partner and current investor with existing portfolio of approximately 110 buildings
  • Residential Skylight / Automotive
  • Regulatory tailwinds

Sustainability

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#1 Potential CRKN Catalyst - Monday's Big First Commercial Agreement News

Crown Electrokinetics Signs First Commercial Agreement with Proptech-Focused Real Estate Holding Company, MetroSpaces

Approximately 450 Smart Window Inserts powered by DynamicTint™ to be Installed in 70,000 Square-Foot Houston, Texas Office Building

LOS ANGELES, Sept. 28, 2021 /PRNewswire/ -- Crown Electrokinetics Corp. (NASDAQ: CRKN) ("Crown" or the "Company"), a leading smart glass technology company, has signed its first commercial customer, MetroSpaces Inc. (OTC: MSPC) ("MetroSpaces"), a proptech company combining world-class real estate development with cutting-edge technology. Crown will install its Smart Window Inserts in MetroSpaces' 70,000 square-foot Houston, Texas office building.

"Whenever you're bringing a new technology to market, as Crown is doing in smart glass, you first have to collaborate with innovators in the space, and that's why we've entered into this agreement. MetroSpaces is an innovator working towards our shared vision of how commercial buildings should operate, both in terms of tenant comfort and also lowering carbon emissions," said Doug Croxall, Chairman & CEO of Crown. "Achieving this milestone with MetroSpaces paves the way for our larger prospective customers to follow this path. We look forward to a successful first installation and long-term customer relationship to rollout in additional MetroSpaces buildings."

Crown's Smart Window Inserts aims to enhance the efficiency of existing windows, eliminating the need to replace the glass by easily fitting into window frames. It also acts as an additional pane of glass, further insulating the building from outside temperatures. And, powered by solar, Smart Window Insert will ultimately be able to function without wiring into the building. Initial field test results suggest that the inserts can reduce energy costs of office buildings by approximately 26%. Crown expects to start installation of the Smart Window Inserts during the first quarter of 2022.

"MetroSpaces is thrilled to work with Crown Electrokinetics and be among the first commercial building owners to receive its Smart Window Inserts powered by DynamicTint™," said Oscar Brito, MetroSpaces CEO. "With our deep emphasis on proptech, we've looked at almost all of the smart glass solutions in the marketplace and have chosen to work with Crown because of its entirely unique approach of putting smart glass technology into a window insert. In our first building, this should help MetroSpaces lower energy usage with an attractive payback period. This is the sort of high-end connected services we'll be looking to install into all of our buildings."

Read the full article here.

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#2 Potential CRKN Catalyst - Dawson James $8.50 Price Target

On August 3rd, Dawson James Securities initiated coverage on CRKN and provided an $8.50 target.

Here's some highlights from the report:

Valuation

  • We believe Crown can achieve $100Mn in revenue over the next 5 to 7 years. The closest comp to Crown, with a high-growth profile, a product addressing a large market and the potential to capture meaningful share, is View, Inc.; the company’s shares have traded between 5x and 13x forward-twelve-month revenue since March of this year, when sales estimates from FactSet were first available. Using this multiple range and a $100Mn revenue bogey results in a 5- to 7-year enterprise value target of $550Mn to $1.3Bn. We discount this to arrive at an 18-month enterprise target range of $161Mn to $595Mn. Using a share count of 17.9Mn, which includes conversion of the convertible preferred, leads to a price target of $9 to $33. There are also substantial warrants and options outstanding with cashless exercise provisions. The amount of additional shares will be determined by the share price at time of exercise. Using a price exercise range of $3.70 to $9.00 (the current price to the low end of the target price above) leads to 4.2Mn to 10.5Mn additional shares. Adjusting the target range for these additional shares brings the price target range to $5.66 to $26.92 per share. This is a wide range.
  • For our price target, we focus on the lower EV/Sales multiple of 5.5x to reflect the risks of achieving our revenue estimate. An 18- month EV target range, with a 25% discount rate and assuming 5-7 years to achieve $100Mn in revenue is $161 million to $251Mn. With a share count of 17.9Mn, this equates to a price target of $9 to $14 per share. Including the exercise of the existing warrants and options, using the share price at the time of exercise shown above leads to a price target range of $5.72 to $11.35. Our price target of $8.50 is the midpoint of this range.
  • Our price target of $8.50 is based on an EV/Sales multiple of 5.5x and the $100Mn in revenue we believe the company can achieve in 5 to 7 years. We have discounted the target EV at a 25% discount rate and included an estimate of the cashless exercise of warrants and options.

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#3 Potential CRKN Catalyst - Low Float Profile

According to Yahoo Finance, CRKN has a low float.

The website reports this profile to have approximately 12.01Mn shares in its float.

Why is that important? It's important on one crucial level. Volatility.

With so few shares available for trading, other potential catalysts (like big news) can send shares heading vertical in the short-term.

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#4 Potential CRKN Catalyst - Profile Trades Above Several Lines Of Potential Support

After a major move Tuesday on the heels of the big news I mentioned above, CRKN moved above several lines of potential support.

Those include CRKN's:

  • 5-Day Exponential Moving Average (EMA)
  • 13-Day EMA
  • 50-Day Simple Moving Average (SMA)
  • 100-Day SMA

If potential support starts building at these levels, CRKN could look to make a charge back up the charts.

And with a 52-week high of $8.00 and an analyst target of $8.50, there could be nearly triple-digit potential upside from Tuesday's closing valuation.

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#5 Potential CRKN Catalyst - DynamicTint™ Insert Could Reduce Energy Costs By 26%

Crown Electrokinetics Smart Glass Insert Could Reduce Energy Costs by at Least 26%

New data from preliminary field test suggests that office buildings may lower HVAC-related costs by installing smart glass inserts from Crown

LOS ANGELES, Aug. 3, 2021 /PRNewswire/ -- Crown Electrokinetics Corp. (NASDAQ: CRKN) ("Crown"), a smart glass technology company, has completed a preliminary field test, and the data suggests that it can reduce energy costs of office buildings by approximately 26%. The field test was conducted from the 22nd floor of a Los Angeles office building, where Crown's patented ink technology was partially rendered onto window inserts and then placed over single pane windows. By blocking out some of the heat generated by sunlight, the simulation data indicated that an office building could reduce the operating costs for heating, ventilation, and air conditioning (HVAC) systems. At scale, such a reduction in HVAC utilization can also help lower carbon emissions. Additionally, the inserts are intended to reduce glare, improve tenant comfort, and eliminate the need for window blinds.

Fundamentally, single pane windows are energy-inefficient, providing little insulation from heat generated by sunlight. Commercial buildings subsequently absorb most of that heat, leading to increased operating costs associated with HVAC systems that cool the buildings. Additionally, higher HVAC usage creates excessive amounts of carbon emissions, and according to the Department of Energy, buildings account for 76% of electricity use and 40% of primary energy use in the United States.

Crown's DynamicTint™ Insert aims to enhance the efficiency of existing windows, eliminating the need to replace the glass by easily fitting into window frames. It also acts as an additional pane of glass, further insulating the building from outside temperatures. And, powered by solar, DynamicTint™ Insert will ultimately be able to function without wiring into the building.

"We're pleased with the results of this initial field test, but I believe that 26% in energy savings is just the baseline. We have evidence that our inserts will also save energy related to the HVAC heating as well as cooling. As we continue to iterate on our beta product, we expect the DynamicTint™ Insert to help reduce a building's energy costs and its carbon emissions. Perhaps most importantly, the insert approach to smart glass makes it easier to retrofit to existing buildings, and it will be considerably less expensive than anything currently in the market. As we transition from an R&D phase to commercialization, we're listening closely to our prospective customers and incorporating features most critical to office REITs, since saving money and combating climate change should not be mutually exclusive," said Doug Croxall, Crown's Chairman & CEO.

Read the full article here.

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CRKN Recap: Top 5 Potential Catalysts To Know Now

#1 - Monday's Big First Commercial Agreement News

#2 - Dawson James $8.50 Price Target

#3 - Low Float Profile

#4 - Profile Trades Above Several Lines Of Potential Support

#5 - DynamicTint™ Insert Could Reduce Energy Costs By 26%

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Coverage is officially initiated on CRKN. When you have time later, do this:

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If there are any updates today, I'll get them out to you quickly.

Sincerely,

Axel Adams

Editor, SCF


(Always Remember The St-ock Prices Could Be Significantly Lower Now From The Dates I Provided.)​

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