With Last Week's Potential Catalyst Acquisition News, (HLRTF) Could Be Poised For A Vertical Move
U.S. (OTCQB: HLRTF) - Canada (CSE:HEAT)
New opportunities for energy businesses are opening up in response to the challenges of deep decarbonization in the global economy.
Traditional energy companies and newcomers to the energy world are seeking competitive advantage in areas that are either still uncharted or untested at the scale that the energy world demands.
"Looking purely at the stock market performance, the cleantech sector had a breakout year massively outperforming the market despite the bull market witnessed starting in late April to early May [of 2021] and continues to this day," says Yuan-Sheng Yu, who leads Lux Research’s Energy Program.
Recently, the current U.S. Administration announced a $2Tn infrastructure plan that included key details on a clean/green energy focus.
The president is calling on Congress to in-vest $35Bn in research and development for projects on technologies to mitigate climate change and create jobs, such as carbon capture and storage, hydrogen, offshore wind, and electric vehicles.
In other words, clean/green energy and solutions could be a major focus in the immediate future.
Due to these circumstances, I've been keep my eyes closely locked on company that is pivoting to clean every technologies as they work to curb their carbon footprint within the energy sector.
For Monday, there is only one profile to have at the top of your watchlist:
Hillcrest Energy Technologies, LTD. (HLRTF)
Hillcrest intends to lead by example to decarbonize the energy sector. The Company, as it pivots from the production of fossil fuels at its West Hazel asset in Saskatchewan, has added clean energy technologies that help unlock efficiencies in electrification and maximize performance of electric systems including electric vehicles, motors and electric generators. From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power the future.
#1 Potential Catalyst - Major Acquisition News
Hillcrest Acquires ANIGO Technologies Inc. Ari Berger joins Hillcrest Executive Team as CTO
VANCOUVER, B.C. - TheNewswire - April 6, 2021 – Hillcrest (CSE:HEAT) (OTC:HLRTF) (FRA:7HI.F) (“Hillcrest'' or the “Company”), today announced the acquisition of ANIGO Technologies Inc. (“ANIGO”), a privately-owned engineering product development company and developer of proven electric machine control software IP. This software IP, specifically designed for use with electric motors, electric generators and other integrated power systems, has the potential to greatly enhance the performance of any application requiring precise control of rotating electric machines.
Under the terms of the agreement, ANIGO, including the software IP developed and owned by ANIGO, becomes a wholly owned subsidiary of Hillcrest. Ari Berger, ANIGO’s founder, has joined Hillcrest’s executive team as Chief Technology Officer and will lead Hillcrest’s technology research, development and deployment efforts. Mr. Berger will advance Hillcrest’s core capabilities by: aggressively developing and accumulating high-value IP solutions; recruiting specialist engineers to build out the internal technical team; and forming value-add partnerships to establish greater collaboration and commercialization opportunities.
“This acquisition solidifies our foothold in the clean tech software space, giving us a foundation on which to build value and grow,” said Hillcrest CEO, Don Currie. “Ari’s field of vision is significant and impactful. By bringing both the IP and its inventor into Hillcrest, we’re able to stay agile, further strengthen our team, and pursue collaboration opportunities with EV and electronics innovators who recognize the increased value and substantial performance benefits that Hillcrest’s next-level IP will enable.”
High value market opportunities include:
- Precision control systems - aeronautical applications, autonomous vehicles, etc.;
- Traction control systems - electric motors and powertrains to increase power/speed/torque performance or extend EV range;
- Electrical generator controls - to convert and deliver renewably generated electricity; and
- Control software enhancements - connectivity associated with emerging technologies such as blockchain, IoT and others.
“The need for electric machine control software that enables intelligent electricity generation and improves the performance of electric motor systems will be in growing demand for decades,” said Ari Berger, Hillcrest CTO. “Relative to other technologies, we are intentionally prioritizing software IP as it presents the most effective path toward commercialization, due to its short customization and adaptation times and low cost. I’m excited to become a significant shareholder of Hillcrest and to have the support and resources in place to push forward and capitalize on our IP.”
In exchange for purchasing ANIGO, Hillcrest issued the owners of ANIGO 6Mn Hillcrest common shares and paid $200K in cash.
Read the full article here.
#2 Potential Catalyst - Company Begins Trading On CSE Under New Symbol
Hillcrest Begins Trading on Canadian Securities Exchange Under New Symbol "HEAT"
VANCOUVER, B.C. - TheNewswire - March 31, 2021 - Hillcrest (“Hillcrest” or the “Company”) today announced that, further to its news release dated March 29, 2021, the Company is now approved and listed on the Canadian Securities Exchange (“CSE”) trading under the new symbol “HEAT”.
Hillcrest’s move to the CSE signals an increased focus on the Company’s mission to accelerate the transition from fossil fuels to clean energy and advance the Company’s technology portfolio. Investment in electric machine control software IP and further exploration and development of commercial applications in electric vehicles, motors and power generators among other systems remains a key area for the Company.
“As global demand for clean energy sources continues to grow, our aim is to take a first-mover approach with IP development and create the conditions and capacity to get these innovations into the real world,” said Hillcrest CEO, Don Currie. “The entrepreneurial culture found within the CSE provides us with greater freedom to make these moves, and our momentum is only increasing. As our plans to innovate with greater velocity unfold, we’ll be working hard to drive the type of transformative change needed to meet our goals.”
Read the full article here.
#3 Potential Catalyst - New Well Brought Online, Company Announces Start Of Remediation
Hillcrest Brings New West Hazel Well Online; Announces Start of Remediation
VANCOUVER, B.C. - TheNewswire - March 30, 2021 – Hillcrest (“Hillcrest or the “Company”) is pleased to announce that, further to its shareholder update dated January 25th, 2021, a short-lateral oil well was successfully drilled from an existing well site in the Company’s West Hazel oil field and is now on production. Hillcrest utilized available cash on hand to complete this drilling operation.
Early fluid production numbers are positive with the well producing an average of approximately 100 barrels of oil per day over the first 5 days. Production performance from heavy oil reservoirs such as those in West Hazel can require a period of 3-4 weeks before stabilized numbers will be available.
Hillcrest commenced production from its West Hazel oil field located in Saskatchewan, during 2019, by restoring oil production from four shut-in oil wells. Current field development comprises four oil producers (including the well just drilled), a water disposal well and production facilities with integrated water treatment and injection systems.
As part of Hillcrest’s commitment to responsible operations, the Company is planning to pro-actively conduct field remediation activities significantly earlier than required under current regulations. Field remediation will reduce Hillcrest’s long term abandonment liability and underscore the wider ongoing objective of reducing the Company’s environmental footprint.
The Company will use cash flows from the new and existing wells to accelerate the Company’s transition from fossil fuels to the development of clean energy technologies.
“Our pivot from traditional oil and gas production toward a more diversified business model that transforms earnings into investment into clean energy technologies is aggressive and important,” said Hillcrest CEO, Don Currie. “We intend to maximize revenue from the field which is providing seed funding to scale-up activity and focus on creating transformative energy technologies.”
“The entire Hillcrest team has been focused on laying the foundation for this new chapter of the Company,” added Currie. “Balancing short-term revenue maximization with long-term global market clean energy technology expansion, is the path we believe will potentially maximize corporate and by extension, shareholder value."
Read the full article here.
#4 Potential Catalyst - Shareholder Update
In January, CEO Donald Currie, released a shareholder update. Here are some of the key highlights:
Hillcrest Shareholder Update
January 25, 2021 - TheNewswire - Vancouver, B.C. - Hillcrest (the “Company” or “Hillcrest”) is pleased to provide the following shareholder update on the status of key Company initiatives.
Hillcrest is actively working to complement our current oil and gas business with clean energy technology opportunities, funded to date in large part from oil production revenues.
Identifying and progressing early-stage prospects at minimum cost, has provided Hillcrest with a portfolio of clean energy opportunities, from which high value projects can be selectively progressed as part of a plan to ultimately transition Hillcrest to a clean energy technology company. We believe this clearly differentiates Hillcrest as a leader within our peer group, transitioning from fossil fuels to clean energy.
Several themes in the Company’s current opportunity portfolio could provide compelling value propositions, e.g.:
- developing and owning clean technology intellectual property (IP), which could be applied to various applications;
- partnering with others to jointly develop clean energy technologies;
- licensing third party technology or IP which complements Hillcrest clean tech initiatives.
Potential value is expected to be maximized where Hillcrest owns and controls technology and IP. Guided by that, the Company plans to target opportunities to develop proprietary IP and to maintain flexibility to preferentially select and pursue specific prospects.
Specific updates on various initiatives currently being actively progressed are as follows.
ANIGO and Ari Berger
On November 23rd, 2020, Hillcrest announced a Memorandum of Understanding with ANIGO Technologies Inc. (ANIGO) to negotiate and execute a definitive agreement whereby Hillcrest would acquire rights to certain electric machine control intellectual property (“ANIGO IP”).
ALSET Innovation Ltd.
On August 12, 2020, Hillcrest announced its US Licensing Agreement with Oropass Ltd. (the “Licensing Agreement”), enabling development, licensing, and marketing of US patented, electricity generation and electric motor technologies.
Balance Sheet and Financing
Hillcrest ended 2020 in a much stronger financial position than the previous year. Consistent revenues from low-cost oil production operations allowed the Company to meet expenses and to explore opportunities to transition into clean energy technologies.
“2020 was a pivotal year for Hillcrest,” Don Currie, Hillcrest CEO states. “The energy sector is rapidly changing, and we take great pride in positioning the Company as a leader addressing the global climate crisis. We are taking the initial steps to transition our business into clean energy technologies, substantially funding this transition from responsible depletion of our remaining oil reserves. While revenues from oil production have sustained the Company to date, our potential clean energy future appears to have almost limitless potential. Hillcrest’s Board and Management are committed to creating exceptional value for shareholders as an energy company for the future. We sincerely appreciate the ongoing support and confidence shown by our shareholders and will continue to work determinedly to earn more of the same in the future.”
Read the full letter here.
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ANIGO Technologies Inc.