With the world fearing the effects of climate change now more than ever, renewable energy penny stocks are gaining popularity. As an emerging leader in the renewable energy and real estate industries, Greenbriar Capital Corporation (OTC: GEBRF) (TSXV: GRB) is gaining attention. Specializing in developing entry-level housing and sustainable investment projects, GEBRF is focused on three major projects: a thousand unit housing project, a 400 MW solar project, and the largest renewable energy project in the Caribbean.
GEBRF Stock News
Management
Founded in 2013, GEBRF is proving itself to be another success play of Jeff Ciachurski – the company’s founder and CEO – who previously led the renewable energy company – Western Wind Energy Corp. The company started with a $250 thousand capital, but over 11 years Ciachurski made it into an industry leader causing to be acquired for $420 million – a bullish sign for GEBRF’s potential under his leadership.
*Updated June 1st
With the company shifting towards improving its communications and branding, GEBRF added Corey Charron and Hewa Rahmani to its Board of Advisors. As experts in communications and marketing, GEBRF is set to capitalize on their vast experience in this field to increase its sales. Since the company is currently focused on the Sage Ranch project, these appointments could set GEBRF up to substantially increase sales in this project.
Sage Ranch Project
Focusing on sustainable real estate, GEBRF launched a $480 million fully approved subdivision – the Sage Ranch project. Designed to as a residential community targeting the housing shortage in California, Sage Ranch will be built on a 138 acre site 2 hours from LA and just half a mile away from Downtown Tehachapi. Using smart house principles, the homes are designed with PV roof panels, shared energy panels, and energy saving devices. The project will break ground this quarter, but Sage Ranch is notable because it is one of the few projects of this size to own 995 lots, debt-free. Which gives GERBF a $120-$150 net value own its own. Appealing to a wide demographic and families with different levels of income, this project could provide a valuable ROI for the company over the long-term.
*Updated June 1st
Considering the scale of the Sage Ranch project, GEBRF entered into a $40 million mandate agreement with Voya Investment Management to finance the construction of the 995 home project. To facilitate this loan, Voya will receive three year warrants worth $2 million at C$1.25 per share as a bonus in addition to $1 million in case GEBRF chooses another lender. As well, GEBRF is in talks with a $700 billion fund manager to finance the entire construction costs of the Sage Ranch project.
Given that the Sage Ranch has major potential in the California housing market, GEBRF conducted a financial feasibility analysis with Altus Group. While the report is confidential due to proprietary modeling software, GEBRF shared some highlights showing the project’s potential. In terms of development, the report expects GEBRF to build the project in 6 phases over 6 years generating $408.7 million in revenues after deducting a 6% sales agent fee. Based on this, the report projects GEBRF will realize a net profit of $173.9 million from the project. With a market cap of only $26.8 million, GEBRF could be undervalued once this project is completed.
On that note, GEBRF opened its sales office for the Sage Ranch project as it looks to start the pre-sale of 160 units for phase 1 in the near future. As a result, GEBRF could become one of the emerging renewable energy penny stocks to watch as the company starts the pre-sale.
Ridge Utilities Partnership
Moving across the border to Alberta, Canada, GEBRF entered a partnership with Ridge Utilities Ltd. – a reliable energy and internet service provider focused on green energy -to develop a micro-generation solar project. Under the agreement, GEBRF is responsible for designing, financing, and operating a number of micro-generation facilities. The company is planning to manage these facilities over a 20 year period but Ridge Utilities will offer exclusive solar club electricity rates – 5 megawatts per generator – for the micro-generators.
Commenting on this partnership, GEBRF’s CEO – Jeff Ciachurski – stated that as solar currently has “the lowest cost of all forms of energy generation, renewable energy is no longer alternative energy, but instead, finally, mainstream energy.” He went on to add the importance of this partnership to the company as it will help it “be known as the go-to developer and financier of solar generation in the micro-generation and community generation space. Enabling communities, farmers, and businesses to leverage the renewable advantage, now matters more than ever as the negative impacts of the pandemic continue to challenge the economy.”
To fund the project, GEBRF is planning to provide funding for the new solar facilities with an initial C$120 million in non-dilutive financing and the option to add another C$500 million. Since then, GEBRF has announced the sites are already structured and will build out the first phase of solar production soon.
Currently, the company is restricted by an NDA and cannot disclose the estimated prices per kwh, but it stated that the project will be divided into three sectors: government, corporate, and regional. The company’s president – Cliff Webb – also implied that the first set of projects could generate up to C$12 million annually in discretionary free cash flow.
Montalva Solar Project
As for the Puerto Rico project – Montalva Solar Farm – GEBRF is developing a unique 320 MW DC and 160 MW AC PV electricity generating solar facility on a 870 acre site considered to be one of the highest solar insolation areas in the country. The project will be operated under a Power Purchase & Operating Agreement with the Puerto Rico Electric Power Authority (PREPA) through GEBRF’s subsidiary – PBJL Energy Corporation.
*Updated June 1st
To finance this project, GEBRF executed a $195 million project financing mandate with Voya to complete the project. As this financing is at the project level, GEBRF will not have to issue shares – reducing dilution risk to shareholders. With this in mind, GEBRF executed its agreement with the project’s EPC contractor and signed the PPA contract. With operations in the Montalva Solar project started in April, GEBRF projects $36 million annually from this project.
West Lake Solar Project
In November, GEBRF entered a strategic agreement as an energy supplier for West Lake Energy Corp. As one of the first pure upstream oil and gas producers with carbon neutrality plans, West Lake has agreed to purchase all the energy generated from the 90 MWAC of solar energy production operated by GEBRF as well as from its second site.
*Updated June 1st
With this in mind, GEBRF started operations for this project last April and expects to realize an annual EBITDA of C$19.5 million annually from the project. Considering the company’s solar projects, GEBRF stock is emerging as one of the most exciting renewable energy penny stocks this quarter.
Captiva Investment
Additionally, the company owns 10.7 million shares of Captiva Verde Land Corp. which are valued between $3 Million and $8 Million. Captiva Verde primarily operates in the health and wellness sector but it has assets in sustainable real estate communities in California which might be the reason behind GERBF’s interest in the company.
*Updated June 1st
Future Plans
In the meantime, GEBRF is in an insider blackout period due to pending news regarding project milestones and a new joint venture. If these announcements are as major as the company believes, GEBRF could be set to follow through on its plans for its NASDAQ uplisting by July 2022. In light of this, GEBRF is one of the renewable energy penny stocks to watch in 2022.
Insider Buying
Looking to increase its liquidity, GEBRF recently closed a private placement where it issued 2 million units for $1.25 per unit. Each unit contained one share and a share purchase warrant for $1.35 expiring in March 2025. To lighten the impact of this dilution on its shareholders, these issued shares have a hold period until July 29th. While GEBRF raised $2.5 million from this offering, investors are excited that one of the company’s insiders purchased 500 thousand units worth $625 thousand. This heavy investment is a bullish sign and could indicate that there is major news in the works for GEBRF.
Media Sentiment
@ChairmanOtc believes GEBRF could be undervalued in light of its ongoing projects.
Technical Analysis
GEBRF is currently trading at .8310 and shows supports near .7771 and .6367. The stock also shows resistances at .8889 and 1.0033. After announcing the blackout period, GEBRF rallied by as much as 94%. While the stock lost some of its momentum, GEBRF could witness another major run when the company releases its pending news. As a result, investors are watching GEBRF for a retest of its resistance near $1.00.
Accumulation has been steadily trending upwards since GEBRF announced its blackout period resulting in its run. The MACD recently turned bearish and the RSI is holding at 49, leaving room for GEBRF to continue its move up with volume. Given the company’s solid share structure with an OS of only 31.5 million, high volume could send GEBRF over $1 – making it one of the renewable energy penny stocks to watch this quarter.
GEBRF Stock Forecast
Currently preparing for the pre-sale of 160 units in the Sage Ranch project, GEBRF is set to capitalize on California’s housing crisis and bolster its revenues in 2022. As for its solar power projects, GEBRF started operations at the Montalva solar project and the West Lake solar project in April. When both projects are finished, GEBRF could become a regional leader in solar power due to the scale of both projects. With the company planning to announce major news soon, GEBRF could be on its way to the NASDAQ. In light of this, GEBRF could prove to be a high value investment for those willing to hold long-term.
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