Two weeks ago Quantafuel sold off due to a delay of Skive continues production. Investors viewed this as increasing uncertainty over Quantafuel ability to chemically recycle plastic.
Today, Quantafuel announced that BASF converted their convertible loan into shares of Quantafuel. I view this as very positive. BASF knows more about Quantafuel more, than anybody else. They have been helping Quantafuel since the start and have they staff permanently at Quantafuel plant. The fact BASF decided to convert loan into equity is a strong vote of confidence. The press release provided the below quotes:
“After further equity injections by third parties and in the course of continuously optimizing BASF’s financial investments, BASF decided to convert the loan into new shares,” says Dr. Lars Kissau, Senior Vice President Global Strategic Business Development at BASF’s Petrochemicals division. “Quantafuel’s technology remains an important building block for BASF’s ChemCyclingTM project with the aim to use pyrolysis oil as feedstock in chemical production.”
“We are happy that BASF have decided to convert the loan into shares, making them our largest shareholder. We are very much looking forward to the continued cooperation,” says Ann-Christin Andersen, Chair of Quantafuel’s Board.
I believe the Quantafuel shares reached bottom today. The shares should start re-rating, as investors digest the importance of today’s announcement.
The main message BASF is send in us is: BASF is confident in Quantafuel ability to deliver. I believe investors should listen.
Wait for a string of good news from Quantafuel and proof of concept, that should be comming soon.
OTHER OPPORTUNITIES TO LOOK AT:
Biovica – is one of the top picks for this quarter. The company is due to get FDA approval and start sales in the US. The company has 25 studies from leading US and EU hospitals that their breast cancer works, saves lives and costs of treatments. Biovica is to become a global leader in this novel way of testing for cancer. Xbrane, in a similar situation, doubled in two months prior to such an announcement. Biovica will most likely do as well. See the below article for the full investment case:
Linkfire. It is a recent IPO listed in Stockholm. It was placed at 11.20 SEK, it is now around 10 SEK. It is a play on the growth of music streaming and, in the next phase, movie streaming. Pareto will be publishing research in two weeks time. I am long and very bullish, Linkfire. I will publish an article on Linkfire in the next two weeks.