Costa Mesa-based Clean Energy Technologies, which designs, builds and markets clean energy products focused on energy efficiency and environmentally sustainable technologies, is planning a stock sale that regulatory filings indicate could raise up to $35 million.
The company is also seeking to join the Nasdaq stock exchange, in an “uplisting” from its current trading on over-the-counter markets (OTCQB: CETY).
The company currently counts a market value around $30 million; its shares are down some 50% from a year ago.
Clean Energy believes it “will meet the standards for listing on the Nasdaq Capital Market or other national exchange. However, there can be no assurance that our common stock will be approved for listing on the Nasdaq Capital Market.”
The public offering price of the shares of common stock offered by the prospectus will be determined at a later date.
Its stock price in the over-the-counter market was below 3 cents a share last week.
Clean Cycle
The company said in a July 8 regulatory filing that its “mission is to be a leader in the ‘zero emission revolution’ by offering recyclable energy solutions, clean energy fuels and alternative electric power for small and midsized projects in North America, Europe, and Asia.”
The company’s systems also convert waste products created in manufacturing, agriculture, wastewater treatment plants and other industries into renewable natural gas, hydrogen and an environmentally friendly substance known as biochar, in addition to electricity. Clean Energy Technologies’ principal product, the Clean Cycle generator, captures wasted heat energy from manufacturing to produce electricity, which can be recycled or sold to the grid.
“We are receiving more opportunities and interest in our Clean Cycle heat recovery generators,” CEO Kam Mahdi said in a statement when announcing first-quarter results on May 17. It reported over $775,000 in sales last quarter, up nearly fivefold from a year ago.
Madhi said “more customers are trying to take advantage of the federal investment tax credits and state incentives that now include waste heat recovery as a recognized clean energy source.”
Waste Use
Clean Energy Technologies says it plans to manufacture component parts for its waste-heat recovery and waste-to-energy business and to provide consulting services to municipal and industrial customers.
In its SEC filing, the company noted that a portion of its business is in China.
“Accordingly, our business, results of operations, financial condition and prospects may be influenced to a degree by economic, political, legal and social conditions in China,” the company said.
The company’s plans for the proceeds from the share sale include promoting sales and marketing, strengthening the supply chain and investing in research and development. The firm had about 11 full-time employees as of early this month, and operates out of an 18,200-square-foot facility on Red Hill Avenue.
Name Game
Clean Energy Technologies is one of several public companies in OC promoting environmentally friendly services and products.
The Costa Mesa company isn’t to be confused with Clean Energy Fuels Corp. (Nasdaq: CLNE) in Newport Beach; that company provides renewable natural gas made from organic waste for the transportation industry, and was valued at more than $1.2 billion as of last week.
