GRS Hydrogen Solutions has announced its intention for listing and an IPO on Canada’s Toronto Stock Exchange (TSX). GRS Hydrogen has stated that they have already contacted the needed authorities and are in the process of compiling the required paperwork, including all accounting materials needed for its listing on Canada’s premier exchange, the TSX. GRS Hydrogen Solutions has also stated that it has begun a relationship with Morgan Stanley Shareworks (formally Solium) for the express purpose of the sale of its shares.
Who is GRS Hydrogen Solutions?
GRS Hydrogen Solutions is a renewable energy company that has a focus on the production of electricity from hydrogen. Their GL-15 system is capable of converting hydrogen to clean electricity from a seawater extraction with the added benefit of drinking water as a byproduct.
The choice for GRS Hydrogen Solutions to list on the TSX for its IPO is a smart one. The Toronto Stock Exchange is ending the year up over 22%, a little behind the US’s S&P500 that is up 29% for the year.
The TSX has one advantage in that it is a hotbed for hosting green energy companies. This year the green energy sector has taken a hit, the Harvest Clean Energy ETF that follows renewable energy stocks on the TSX is down nearly 25% for 2021, but this means that any newly listed stock such as GSX Hydrogen Solutions will likely be at a discount and a good buy for investors.
Here are just a few of the TSX’s biggest names in the renewable energy sector:
Because of the strong members of the renewable energy sector that are listed on the TSX, GRS Hydrogen Solutions will gain from the add-on effect. When other members of the sector climb, investors will be searching for companies in the same sector and also buy to see even better returns. They will likely also be added to an ETF that is following the sector and thus immediately have a buyer.
The TSX is the right place for renewable energy
These top renewable energy companies have also been very successful with their IPOs and their long term performance. Northland power had an IPO price of $5 and, on its first day, closed at $5.91 an 18% return for its early investors. Algonquin has tripled its share price over the past ten years as well as paid a consistent dividend to its investors. The wind and hydropower producer, Transaltna had so much interest in its IPO that it was able to boost its sale of allotment shares of 3 million with over-allotment of an additional 2.1 million sold at CAD10/share. This added interest allowed Transaltna to boost its IPO gross proceeds to CAD 221 million.
GRS Hydrogen Solutions listing on the TSX will hopefully bring in similar interest seen with these other great renewable energy companies for GRS Hydrogen’s power production systems.
Clean Power for Off the Grid
GRS Power Solutions is mainly focused on providing power to communities and businesses that are not easily able to access the grid. Their system is especially good for remote and stranded islands and high energy usage businesses like mining that are not always close to grid service. One of their claims to fame is that GRS Hydrogen Solutions is already providing the world’s first truly green-powered marina in Rum Cay Bahamas. This is a “Zero-Emissions emit NO trace’ amount of particulates” water and power-generating plant that was the Island’s “Dream Project” won by GRS Hydrogen with the goal of reducing Rum Cay’s carbon footprint. and has brought to GRS Solutions revenue of 16.5 million for the project which has the ability to grow to 500% of the current needs of the island community.
However, seawater to hydrogen power is not the only thing that GRS Hydrogen Solutions is doing. They have designed hydrogen fuel filling stations for automobiles, marine, aviation, and aerospace usage, to ensure that as the use of hydrogen as a fuel continues to grow in popularity, they will be able to service the needs.
Before this future can become a reality, there are a few important avenues that GRS Hydrogen solutions is taking to find success. The first step is through emissions reduction. As the requirements for companies to reduce their carbon footprint becomes more important, they will need to have a path to transition to a fully sustainable power generation system; however, they will usually not want to give up their legacy systems that burn fossil fuels to create electricity until it is necessary (either due to regulation or age of the system). This is why GRS Power Solutions has designed equipment to provide emission reduction and even elimination solutions through its gas recapture technology. The recapture system will likely be of interest to any buyers on a GRS Hydrogen TSX listing because it allows companies to go from polluters to a profit generator with the GRS Hydrogen systems.
Because these renewable energy systems are novel and many of the people that are operating legacy systems may not have the technical acumen to run the GRS Hydrogen systems. GRS Hydrogen has put tougher a team of Ex Suncor Energy management which will be able to provide full-service maintenance and management solutions. There is also a set of self-sufficient training programs in operational management and safety to ensure that current and new staff are trained quickly.
In order to fund a lot of their new hydrogen power generating systems, GRS Hydrogen has also put into place a scheme for funding through Green Fund financial partners. This project funding, that requires a qualified offtake energy agreement, will make the choice to shift to a GRS Hydrogen system easier for customers and will look especially good for a TSX listing and IPO because potential shareholders will want to see a simple pathway to success.
The announcement of a TSX listing by GRS Hydrogen is an exciting new company that will bring a novel technology to the index. GRS Hyroden Solutions listing on the TSX will allow retail shareholders to invest in this novel technology that leads to a greener future.