Alter NRG (TSXV:NRG) is the top gainer on the TSX Venture exchange today after the Alberta company announced the close of a $10-million financing.
The company will sell 30,769,230 common shares at 32.5 cents each to what it describes as “three new strategic investors.”
The trio is lead by Ervington Investments, which will own approximately 18.2% of the company. The other two investors, Zara Shvidler and Eturab Trade Corp., will own approximately 9.1% and 3.0%, respectively.
Alter NRG CEO Walter Howard, commented on the investment: “I am delighted to have Ervington as a strategic shareholder. Mr. Abramovich’s connections and business network will expand our market reach, and his desire to invest in certain projects provides much needed capital to the industry to fuel its growth. I am looking forward to working closely with his team to continue to advance more energy-efficient waste-to-energy solutions.”
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Alter NRG went through a bit of a shakeup last year when Mark Montemurro resigned as CEO and was joined by Michael Heier, who stepped down from his role as chairman. In March of this year, the company appointed Howard, a former GE exec, as CEO.
The company’s recent efforts have concerned the narrowing of its focus from three segments of alternative energy to just one; plasma gasification. Alter NRG’s revenue has climbed from $2.39-million in fiscal 2008 to $6.71-million in 2011. Though it has been perpetually in the red, Alter NRG’s losses were trimmed to just eight cents a share last year, barely a third of 2010’s loss. Those losses continued into its recently reported Q2, but revenue was a record $4.0 million, a 225% increase over the same period a year prior.
At press time, shares of Alter NRG were up 56.9% to $.40.