Earlier this month, Brenmiller Energy Ltd. (NASDAQ: BNRG) launched the world’s first gigafactory for thermal energy storage in Dimona, Israel. The facility is expected to achieve its maximum capacity of 4 GWh by the fourth quarter of 2023. With a $63 billion market and the consistent demand for efficient energy storage, BNRG is in a position to be a leader in the energy storage market. With an extremely low float, BNRG is one of the low float stocks to watch this year in anticipation of more deals.
BNRG Fundamentals
In hopes of becoming a global leader in thermal energy storage space, BNRG launched the world’s first gigawatt thermal energy storage production line earlier this month to become its primary manufacturing hub. This factory is expected to reach its full capacity of 4 GWh by Q4 2023 which is a sign that significant deals could be expected this year. In this way, BNRG could dominate the thermal energy storage space which is a growing $63 billion market.
Secured Deals
Considering the significance of BNRG’s plans, the company was able to receive a $610 thousand grant from the Israeli Ministry of Environmental Protection to complete a clean energy project at one of Israel’s largest beverage plants. This project is expected to have a capacity of 35 MWh and a maximum capacity of 14 tons of steam per hour. Given the scale of this project, BNRG could be in a position to collaborate with the Israeli government on future projects as Israel is transitioning to cleaner forms of energy after funding 8 new clean energy projects with the help of the US.
In addition to working with the Israeli government, BNRG entered into a non-binding term sheet with Green Enesys Group to decarbonize heat and energy production worldwide which equates to 9 potential clean energy projects totaling nearly 2 GWh of capacity. After completing this project, BNRG and Green Enesys plan to build a new production facility in Europe to complement BNRG’s facility in Israel to meet future demand. In light of this, BNRG could be well-positioned to secure several lucrative deals in the future thanks to its capabilities – making it one of the low float stocks worth investing in at current levels.
Insider Ownership
Meanwhile, the deal includes an option for Green Enesys to acquire a minority stake in BNRG. If this option is exercised, it would be a testament to BNRG’s growth potential in the thermal energy storage space. With this in mind, it is worth noting that the majority of BNRG’s OS is held by insiders – with CEO Avraham Brenmiller holding more than 67% of the company’s shares.
Furthermore, earlier this year BNRG entered into a securities purchase agreement with certain investors, part of which are existing shareholders of the Company, including CEO Brenmiller. That indicates the board and the shareholders are confident in BNRG’s future as a thermal energy storage leader.
As of now, BNRG has a low float of 3.3 million shares which makes it prone to run quickly on news which was shown during BNRG’s 150% run on the deal with Green Enesys. Given that the company could be set to secure several deals due to its capabilities, BNRG could be a bargain at its current PPS – making it one of the low float stocks to watch this year in anticipation of the new production line operating at full capacity.
BNRG Financials
In its Q1 2023 report, BNRG’s assets increased 10% QoQ to $13.6 million from $12.3 million, and its cash and cash equivalents increased 3% QoQ from $6.1 million to $6.3 million. BNRG’s total liabilities increased by 3% QoQ from $9.7 million to $9.4 million.
BNRG didn’t realize any revenue this quarter compared to the $20 thousand it realized last year. However, operating loss decreased 31% YoY from $3.2 million to $2.2 million, which can be attributed to research and development costs declining from $1.3 million to $600 thousand. As a result, net loss improved 23% YoY from $3 million to $2.3 million.
Technical Analysis
BNRG stock’s trend is neutral with the stock trading in a sideways channel between $0.88 and $1.03. Looking at the indicators, the stock is trading above the 50, and 21 MAs which are bullish indications, however, it is below the 200 MA which is a bearish indication. Meanwhile, the RSI is neutral at 58 and the MACD is neutral.
As for the fundamentals, BNRG just witnessed a catalyst in its Q1 earnings and has an upcoming catalyst in Q4 when its new factory reaches full capacity. Since low float stocks can soar on news, BNRG’s current PPS could prove to be a good entry in anticipation of more updates from the company.
BNRG Forecast
As BNRG is steadily advancing toward becoming the global leader in thermal energy storage thanks to its construction of the world’s first gigafactory for thermal energy storage, insiders and shareholders appear to have complete faith in the company’s future. Additionally, BNRG signed two different contracts with Green Enesys and the Israeli Ministry of Environmental Protection which can open the door for further collaborations in the future. That combined with being one of the low float stocks, makes BNRG stock a stock worth keeping an eye on.
BNRG Fundamentals
In hopes of becoming a global leader in thermal energy storage space, BNRG launched the world’s first gigawatt thermal energy storage production line earlier this month to become its primary manufacturing hub. This factory is expected to reach its full capacity of 4 GWh by Q4 2023 which is a sign that significant deals could be expected this year. In this way, BNRG could dominate the thermal energy storage space which is a growing $63 billion market.
Secured Deals
Considering the significance of BNRG’s plans, the company was able to receive a $610 thousand grant from the Israeli Ministry of Environmental Protection to complete a clean energy project at one of Israel’s largest beverage plants. This project is expected to have a capacity of 35 MWh and a maximum capacity of 14 tons of steam per hour. Given the scale of this project, BNRG could be in a position to collaborate with the Israeli government on future projects as Israel is transitioning to cleaner forms of energy after funding 8 new clean energy projects with the help of the US.
In addition to working with the Israeli government, BNRG entered into a non-binding term sheet with Green Enesys Group to decarbonize heat and energy production worldwide which equates to 9 potential clean energy projects totaling nearly 2 GWh of capacity. After completing this project, BNRG and Green Enesys plan to build a new production facility in Europe to complement BNRG’s facility in Israel to meet future demand. In light of this, BNRG could be well-positioned to secure several lucrative deals in the future thanks to its capabilities – making it one of the low float stocks worth investing in at current levels.
Insider Ownership
Meanwhile, the deal includes an option for Green Enesys to acquire a minority stake in BNRG. If this option is exercised, it would be a testament to BNRG’s growth potential in the thermal energy storage space. With this in mind, it is worth noting that the majority of BNRG’s OS is held by insiders – with CEO Avraham Brenmiller holding more than 67% of the company’s shares.
Furthermore, earlier this year BNRG entered into a securities purchase agreement with certain investors, part of which are existing shareholders of the Company, including CEO Brenmiller. That indicates the board and the shareholders are confident in BNRG’s future as a thermal energy storage leader.
As of now, BNRG has a low float of 3.3 million shares which makes it prone to run quickly on news which was shown during BNRG’s 150% run on the deal with Green Enesys. Given that the company could be set to secure several deals due to its capabilities, BNRG could be a bargain at its current PPS – making it one of the low float stocks to watch this year in anticipation of the new production line operating at full capacity.
BNRG Financials
In its Q1 2023 report, BNRG’s assets increased 10% QoQ to $13.6 million from $12.3 million, and its cash and cash equivalents increased 3% QoQ from $6.1 million to $6.3 million. BNRG’s total liabilities increased by 3% QoQ from $9.7 million to $9.4 million.
BNRG didn’t realize any revenue this quarter compared to the $20 thousand it realized last year. However, operating loss decreased 31% YoY from $3.2 million to $2.2 million, which can be attributed to research and development costs declining from $1.3 million to $600 thousand. As a result, net loss improved 23% YoY from $3 million to $2.3 million.
Technical Analysis
BNRG stock’s trend is neutral with the stock trading in a sideways channel between $0.88 and $1.03. Looking at the indicators, the stock is trading above the 50, and 21 MAs which are bullish indications, however, it is below the 200 MA which is a bearish indication. Meanwhile, the RSI is neutral at 58 and the MACD is neutral.
As for the fundamentals, BNRG just witnessed a catalyst in its Q1 earnings and has an upcoming catalyst in Q4 when its new factory reaches full capacity. Since low float stocks can soar on news, BNRG’s current PPS could prove to be a good entry in anticipation of more updates from the company.
BNRG Forecast
As BNRG is steadily advancing toward becoming the global leader in thermal energy storage thanks to its construction of the world’s first gigafactory for thermal energy storage, insiders and shareholders appear to have complete faith in the company’s future. Additionally, BNRG signed two different contracts with Green Enesys and the Israeli Ministry of Environmental Protection which can open the door for further collaborations in the future. That combined with being one of the low float stocks, makes BNRG stock a stock worth keeping an eye on.