NIA is very bullish on the stock of Acceleware Ltd. (TSXV: AXE) currently priced at $0.25 per share. It has a market cap of only CAD$24.3 million and the company has just been awarded a massive CAD$10 million non-refundable grant from the Sustainable Development Technology Canada (SDTC) and Emissions Reduction Alberta (ERA) in accordance with their mandates to bring clean technologies to market that are economically viable and reduce GHG emissions. AXE has developed patent pending technology that can make oil sands and heavy oil as clean and as profitable as any other oil on the planet.
Today, tar sands producers use Steam-Assisted Gravity Drainage (SAGD) technology to access the heavy bitumen deep underground, which not only burns fuel to generate steam, thereby generating harmful greenhouse gas emissions, but is also a high-cost production method that consumes an enormous amount of water. For bitumen deposits closer to the surface, tar sands companies use surface mining, which creates extensive disruption to the land surface and requires large volumes of fresh water to separate the oil from the sand.
AXE’s RF XL and Modular RF are all-electric, game changing heating technologies that use radio waves rather than steam to mobilize heavy oil and bitumen, resulting in dramatic economic savings. It is estimated that AXE’s technology will allow tar sands companies to reduce capital costs by as much as 70% while reducing operating costs by up to 40%. By producing steam from water already in the ground, AXE saves the environment by eliminating GHG emissions and the need for solvents and external water.
In June of 2017, AXE won the Emerging Clean Technology award at the 2017 Global Petroleum Show. AXE’s momentum continued in November when the company won its CAD$10 million grant, with CAD$5 million coming from Sustainable Development Technology Canada (SDTC) and CAD$5 million coming from Emissions Reduction Alberta (ERA). Of the 11 companies awarded grants in November, AXE by far received the largest amount: click here to see for yourself!
NIA expects AXE to announce a huge partnership with a major tar sands company in the upcoming weeks, to conduct a commercial scale test of AXE’s technology later in 2018! If AXE’s commercial test of their RF technology is successful, AXE’s market cap could easily deserve to be in the $200-$300 million range and AXE could become a takeover target. In the short-term, we believe AXE’s valuation could rise to the $50-$100 million range.
AXE owns another business that specializes in accelerating compute-intensive applications on clusters of GPU processors. AXE has a very close relationship with Nvidia (NVDA) the largest producer of GPUs for Cryptocurrency mining. NVDA helped fund AXE and is a major shareholder. NIA believes that we could see AXE begin to target the Cryptocurrency mining industry in 2018!
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