Hey Greg,
Sorry for the delay here - Dan deferred to me on this one simply because I know more about it than him. Also took a little trip this weekend with the fam, so wasn't readily available.
OK so GRN - yeah it is one i like quite a bit. It was added to our Watchlist back when it was trading at $0.41 per share. It'll likely not make our Bull list in the near future simply because it is not big enough to make it. That being said, it is an excellent company and the latest drop in share price is, IMO - a good opportunity.
GRN has been partnering with some pretty high profile names which are looking to lower their carbon emissions. In the past couple of monts, it has signed almost $20M worth of renewable natural (RNG) contracts with US based companies. It has also partnered with Chevron and Brightmark and to work on on dairy biomethane fuel projects. Those are some pretty big names.
The demand for RNG is expected to soar and GRN's pipeline of opportunities continues to grow. At last check, they had a sales pipeline north of $800M and more companies are moving towards RNG projects. In the US, legislation in the US is also going to encourage investment in the sector with a 30% tax credit for upfront costs with building digestors for RNG. I don't see this slowing down anytime soon - the shift to RNG is upon us and Greenlane is well positioned to benefit.
This is however, not without risk. As a small cap, Greenlane wil be subject to considerable volatility and RNG projects will be at the mercy of political influence. It is also at greater risk of not delivering as we've seen with some of their peers (see Xebec). Over the long-term I think that so long as Greenlane executes and doesn't' disappoint in a material way, it'll naturally grow alongside the industry. That can lead to outsized returns if managed appropriately. I say "if" because it is a small cap with an unproven management team and although everything looks good so far, that can change pretty quickly.
All the best,
Mat
Of note, I own a position and am long GRN.