It is two weeks today since QFUEL CEO declared:
…we have the corrected feeding issues and restarted the plant today and anticipate achieving PoC shortly…”
Lars Rosenløv, Quantafuel CEO at Pareto conference 12.1.2021
We do not know what Proof of Concept really means. Pareto analyst mentioned that it is two weeks of continues production at certain level and certain quality. Two weeks is up today. At the same time – it takes some time to rump up the production. Could be days. We do not know. The point is that it could come soon. It could be any day from now on, unless there is some other issue. The potential Proof of Concept should result in a major share price re-rating. Our family office increased our position by 20% this week.
At the same time, as Dr. Lach stated as a reason for joining the company, that “Quantafuel is the most advanced and most QFUEL is the most advanced and most ambitious company in the chemical recycling area”. We are in very early stages of the development. If QFUEL succeeds in its mission, its share price could easily multiply in several times. In a few months, it would not matter if the Proof of Concept was reached this week or next month. Just a reminder of broker price targets from earlier this year before Kjetil disappointed the market by not delivering PoC and resigning (after that some brokers reduced PT):
Fearnley (current) – 95 NOK
Pareto: (21/3/21) – 100 NOK
SpareBank (26/3/21) – 200 NOK
Arctic: (9/3/21) – 125 NOK
In summary, entering before PoC may influence the entry price. Timing of PoC should not effect the QFUEL value opportunity.
Redeye Research had presentation of Biovica yesterday (link below).
The company mentioned the FDA restarted the process and Biovica answered additional questions. There is just question remaining now. Biovica already provided an answer and is now awaiting for FDA response, that “can come any day now”. If positive Biovica will submit updated application for the final approval. As everything would be already approved, such FDA approval should be a formality.
FDA approval is a major catalyst for Biovica. It has been delayed due to FDA congestion with Covid applications. It is very positive, FDA is now working on Biovica again. It is even more positive, that only one issue remains and that could be “resolved any day now”. As I wrote here before, we are very bullish on Biovica. Xbrane in similar catalyst more than doubled. Biovica could easily double too.
Biovica presentation at Redeye:
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