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Clear Blue Technologies International Inc
Symbol CBLU
Shares Issued 65,766,064
Close 2021-07-29 C$ 0.39
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Clear Blue to provide power to NuRAN telecom sites

2021-07-29 10:21 ET - News Release

Ms. Miriam Tuerk reports

CLEAR BLUE TECHNOLOGIES AWARDED MULTI-MILLION DOLLAR CONTRACT BY NURAN

Clear Blue Technologies International Inc. has signed an agreement with NuRAN Wireless Inc., a leading supplier of mobile and broadband wireless infrastructure solutions, with an initial estimated value between $8-million to $10-million in revenues over the next three years. Clear Blue's 2021 third- and fourth-quarter earnings will reflect initial sales numbers for the contract, but the company is providing estimated pro forma revenues for its shareholders in this release. Unless stated otherwise, all dollar amounts are in Canadian dollars, with gross margins in line with what the company has historically reported.

Key highlights

  • NuRAN awarded Clear Blue the contract to power an estimated minimum of 1,333 telecom sites in the Democratic Republic of the Congo (DRC);
  • Clear Blue's first order will realize $750,000 of revenues in the remainder of 2021, with the initial orders due to start shipping in July;
  • Clear Blue estimates approximately $2.5-million per year in revenues between 2022 to 2025, totalling a minimum additional $7.5-million;
  • The contract includes energy-as-a-service, which will provide additional minimum recurring revenues of $100,000 per year, contracted for a minimum of three years, with expansion growth and renewals thereafter.

"This is one of the largest deals secured to date and provides significant upside for Clear Blue's revenues over the next three years," says Miriam Tuerk, co-founder and chief executive officer, Clear Blue Technologies. "We see this as part of a trend, as we emerge from the global pandemic, where corporations are looking to be more sustainable. Projects are being greenlit and orders for our smart off-grid systems are picking up. As a result, management is highly optimistic about revenue and top-line growth during the remainder of 2021 and into 2022."

Clear Blue is contracted to provide its smart off-grid power in the form of the nano-grid power packs and energy-as-a-service to at least 1,333 telecom sites operated by NuRAN in the DRC. This total number of sites represents two-thirds of the total installation, with NuRAN choosing to retain vendor diversity by awarding the remaining sites to other third party suppliers given the size of the project.

Francis Letourneau, president and chief executive officer at NuRAN, stated: "Clear Blue's smart power and energy-as-a-service are key components to our planned telecom rollout in the DRC, offering the lowest CAPEX/OPEX, as well as the best performance and uptime. Because of that, it enables these rural sites to be simultaneously cost-effective and reliable for a strong, viable and profitable business model."

Of the 89.56 million people living in DRC, approximately 18 per cent have access to the Internet, according to Statista, demonstrating a clear need to increase connectivity in the region. Further, the World Bank estimates that the population of the DRC will have reached 120 million by 2030, providing an even greater opportunity for growth in the telecom market.

NuRAN could increase its current order for Clear Blue's Smart Power systems by between 30 to 50 per cent, depending on the success of the initial installations and available financing for follow-on projects. In addition, as the capacity of each site grows, and if NuRAN extends its contract for energy-as-a-service beyond the initial three-year period, Clear Blue expects that the total value of this contract could be $15-million over 10 years.

Clear Blue has a long-standing relationship with NuRAN that has grown to multiple projects since the company's first installation with the telecom operator in 2018. Most recently, NuRAN awarded Clear Blue a contract in Q4 2020 for Cameroon that was valued at $1.45-million.

Ms. Tuerk adds, "We value the trust that NuRAN has placed in us to deliver power to their telecom sites and look forward to working with them on this latest installation."

About Clear Blue Technologies International Inc.

Clear Blue delivers clean, managed, wireless power -- anywhere and any time. The company uses its patented smart off-grid technology, delivered through its energy-as-a-service business model, to manage lighting, telecom, Internet of Things devices and other critical systems worldwide. Clear Blue has thousands of systems under management across 37 countries, including the United States and Canada.

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