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by Stockwatch Business Reporter
The TSX Venture Exchange closed up 2.33 points to 573.12 Tuesday. Among the most active traders on the exchange was Brad Douville's shell graduate, Greenlane Renewables Inc. (GRN), which climbed 11 cents to 65 cents on a higher-than-usual 5.97 million shares. Greenlane has announced a $10-million public offering at 50 cents. It will use the proceeds for its biogas-upgrading business and for debt repayment.
Greenlane sells biogas-upgrading systems. Biogas is fermented organic waste, typically from dairy farms, landfills and waste water treatment plants. Greenlane's industrial systems upgrade biogas into renewable natural gas, which can then be injected into the natural gas grid or used as vehicle fuel. In the nine months to Sept. 30, 2019, the company lost $4.02-million on revenue of $5.86-million.
The $10-million financing will add some cash to a balance sheet that is at least somewhat wobbly. Greenlane had a working capital deficiency of $740,000 on Sept. 30, 2019, and, on top of that, it owes $10.5-million to one of its shareholders, Pressure Technologies PLC, a British manufacturer of high-pressure cylinders, industrial valves and other engineering components. Pressure Technologies was the sole shareholder of Greenlane from 2014 to 2019. It decided to spin off Greenlane last year, because Greenlane had been unprofitable. Pressure Technologies now holds 14.28 million shares or 20.8 per cent of Greenlane.
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