Disclaimer: I’m not an investment advisor. Nothing I have written in this article should be taken as investment advice. Everything I have written here could be inaccurate. Trust nothing you just read. I’m part of the Seeking Alpha Affiliate program which means I have a financial relationship with Seeking Alpha.
Aduro has been on the move. Why?
Source: Google
Aduro is a small-cap pre-revenue technology company and Aduro claims to have a technology that can do the following.
Source: https://cdn.buttercms.com/P5WLrbSCQFKd6DqVWgEv
That is a statement. This is a very ambitious company
They claim to have a solution for plastic recycling. Of the 3 markets shown above, the world is most desperate and lacks a solution to the plastic recycling problem. If a company would come along and have the solution it would be worth a lot of money. Potentially thousands of dollars.
Source: https://www.dw.com/en/why-most-plastic-cant-be-recycled/a-64978847
Plastic is difficult to recycle. The current technologies used are insufficient. The ocean is filling up with plastic. The fish are eating plastic and we are eating fish. It’s really a vicious cycle.
Source: https://cdn.buttercms.com/P5WLrbSCQFKd6DqVWgEv
What gives some initial confidence is the 42% Insider ownership with a lot of the compensation done through warrants which the insiders are using to increase their position further.
market cap= 127m CAD
EV=Around the same. This company has no debt and as a pre-revenue company, they raise money when they need more.
This means there will be more dilution, but if the company succeeds this will not mean much.
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Technology
Source: https://cdn.buttercms.com/mNsTCc0WToyNg2WDnPfZ
Aduro has a completely unique technology in the plastic recycling space.
Source: https://cdn.buttercms.com/P5WLrbSCQFKd6DqVWgEvSour
Before going public in 2021 Aduro had been working on their technology for a long time and they have 7 patents to protect it and 1 pending.
Aduro started working with heavy oil upgrading initially, but during the research process, they found that they could use their technology for other purposes like plastic recycling.
Plastic is made from hydrocarbons. Aduro’s technology returns the plastic back to its hydrocarbon form.
Source: https://cdn.buttercms.com/P5WLrbSCQFKd6DqVWgEv
Source: https://cdn.buttercms.com/unYs8UZRLyXoHFe0aOhZ
Source: https://cdn.buttercms.com/mNsTCc0WToyNg2WDnPfZ
Next, I'll put some videos up that explain the technology in more detail and show some of their facilities so you know it’s a real company.
This is the go-to video for Aduro. They show the lab and the reactor and they talk.
This video talks more about the plastic problem, but why I chose to put this up is that it’s sponsored by Aduro. Aduro part starts at 18:26.
Results
Aduro has proven its technology already on a smaller scale.
Aduro built a continuous flow reactor and has put all kinds of plastics in there and below are the results announced on 15.2.2024. This was huge news and it moved the stock up, but not nearly enough in my opinion.
I’m putting the whole Press release here.
Source: https://ceo.ca/@globenewswire/aduro-clean-technologies-shares-sample-test-results
240 test runs with a variety of different feedstocks and on average 95% was converted into potential hydrocarbon feedstock for the production of new plastics and chemicals. Nobody has results like this in this space.
A couple of months later Aduro provided more results on whether they can recycle Cross-linked polymers which are for example Car tires.
Source: https://ceo.ca/@globenewswire/aduro-clean-technologies-provides-results-on-testing
Aduro was able to convert 84% of the material back to hydrocarbons.
Source: https://www.aa.com.tr/en/environment/kuwait-struggling-to-get-rid-of-world-s-biggest-tire-graveyard/2332769#
Imagine if what is in that picture above was actually an asset, because of Aduros’ technology.
You can take a look at the Wikipedia page for Tire recycling. It’s a mess. https://en.wikipedia.org/wiki/Tire_recycling
If Aduros technology works at a big scale it will change the world. This is the next part Aduro needs to prove.
Business model
Aduro plans to use the licensing model…