Viridis Energy Inc. (TSX-V: VRD.V)
Alternative Energy
0
$1.00
Viridis operates in an attractive biomass industry that does not depend on subsidies like the solar or wind industries. The wood pellet industry is still in its infancy and is likely to grow due to regulatory drivers. The Company is an attractive growth play and is expecting to grow its revenues by a CAGR of 56% from $6 million in 2009 to $40 million in 2013. The Company''s recent upstream and downstream acquisitions have created a vertically integrated company which coupled with the company''s sales channels and growth plans makes for a profitable business model. We believe Viridis has strong growth potential in its business segment in the next five years, hence representing a good investment opportunity in the alternative energy space.
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Overview
Viridis Energy Inc. (“VRD” or the “Company”) is a Vancouver, Canada-based green technology company operating in the biomass space. The Company, through its acquisition of Vancouver-based Cypress Pacific Marketing, a wood pellet distributor, in 2009 and British Columbia-based wood pellet manufacturers Westwood Fibre Products Inc. and Monte Lake Forest Products Inc. in 2010 has transformed into a full-fledged vertically integrated wood pellets company. The main use of wood pellets is as an alternative fuel for heating and providing biomass fuel to utility companies. The Company markets its wood pellets products under the Okanagan pellets, Clean Burn, Dragon Mountain and Surefire brands. VRD has 250 active customers comprising retail chains (Ace Hardware, DoItBest, TruValu) and distributors and focuses on the Northeast region of U.S. and East Canada and has aggressive growth plans to expand throughout the North American market. As of December 31, 2009, Cypress employed 9 full-time employees.