Official press release from TORRENT CAPITAL LTD.
Halifax, Nova Scotia--(Newsfile Corp. - November 20, 2023) - Torrent Capital Ltd. (TSXV: TORR) ("Torrent") is pleased to provide a corporate update on its 50/50 joint venture, Argentia Capital Inc. ("ACI") with Puerto de Argentia Inc. ("can"), as announced on September 21, 2022, and an update to its Investment Portfolio.
Argentina Capital Inc.
Through the ACI joint venture, Torrent is investing in development projects at the Port of Argentia that will generate opportunities to earn income through royalties and equity positions.
"Particularly praiseworthy was the announcement of June 2023 trading terms with Pattern Renewable Holdings Canada 2 ULC ("energy pattern") for a planned green fuel wind energy project at the Port of Argentia where ACI is a signatory to the agreement," said Carl Sheppard, CEO of ACI.
The negotiated commercial terms will see ACI receive a royalty calculated as a percentage of gross receipts on sales of the ammonia production facilities at rates consistent with prevailing renewable energy industry practices for owners. Additionally, ACI has the right to acquire up to a 12.5% โโequity interest as a limited partner in the wind energy, hydrogen and ammonia project, or any other entity established to operate a renewable energy or green fuels production project in the Port. from Argentina.
Pattern Energy has begun feasibility and permitting work for the project. A 400 metric ton per day (MTPD) green ammonia plant is proposed, along with a hydrogen electrolysis facility and a 300 megawatt on-site wind project. Depending on feasibility parameters and market conditions, the project could be expanded to more than one gigawatt of renewable energy producing approximately 1,400 MTPD of ammonia.
Rare earth industrial park
Torrent and POA collaborate to establish a rare earth industrial park in the Port. Torrent has hired specialized engineering company TrajectorE to prepare a rare earth supply chain study. The study is being carried out with the support and financial contributions of the Atlantic Canada Opportunities Agency and the Newfoundland and Labrador Department of Innovation, Energy and Technology. Torrent believes the Port of Argentia is strategically located and has the potential to become a processing hub in the capital-intensive rare earth supply chain. Work for the study has begun and is expected to be completed during the second quarter of 2024.
"I wish to express my confidence in the continued success of Argentia Capital Inc. and its rapidly advancing role in the green economy. The vision and strategic collaborations demonstrated thus far position ACI as a key player in driving economic growth, sustainability and innovation in the region," commented Wade Dawe, CEO of Torrent Capital Ltd.
Investment Portfolio Commentary
Canadian small cap stocks have been under pressure for some time, which has affected investment portfolio performance. This trend has continued in 2023, with the Investment Portfolio falling 6.4% in the third quarter. This compares favorably to the S&P/TSX Venture Composite, which fell 9.9% over the same period.
Torrent reasonably values โโits Investment Portfolio based on the market prices of the shares at the end of each quarter. During the latest quarter, Torrent had an unrealized loss on investments of $860,582 or $0.03 per share compared to an unrealized loss on investments of $1,227,990 or $0.05 per share in the comparable quarter.
We're starting to see encouraging signs that the worst for small-cap stocks may be over. S&P/TSX Venture Composite volumes are down 80% from their long-term average, representing a fraction of the volume typically seen during buoyant market conditions. The valuation ratio of the Russell 2,000 (smaller companies) compared to the Russell 1,000 (larger companies) is the most depressed in 20 years, representing historically significant mispricing among those market segments. Many growth-related investments, such as those in the SaaS, fintech, cleantech and e-commerce sectors, currently trade at EV/Revenue multiples of 1x to 2x, versus historically trading above 5x.
Torrent remains committed to identifying high-quality investment candidates that have overcorrected in the face of a weak macroeconomic environment.
About Torrent Capital Ltd.
Torrent is a publicly traded investment issuer that invests in securities of publicly traded and private companies. The Company invests in companies that will experience accelerated growth or that trade at a discount to their intrinsic value. Torrent offers investors the ability to earn market-beating returns while providing transparency, daily liquidity and a modest fee profile compared to competing investment products.
For more information contact:
Torrente Capital
Wade Dawe, President and CEO
Bus: 902-536-1976 Fax: 902-491-4281
info@torrentcapital.ca
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This press release includes certain "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results and future events to differ materially from those expressed. or implicit. for such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Torrent disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The reader is referred to the Company's periodic financial reports for a discussion of risks and uncertainties.
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