Promising Silicon Company

Rec Silicon is a producer of silane-based, high-purity silicon materials. Historically they got the stick from China who put a 57% tariff on their product and when Trump started the trade war it didn't help with the negotiations. They were forced to close their factory in Moses Lake but their factory in Butte is delivering positive EBITDA.

With Biden there's a change in US politics and REC is situated in the middle of all of this as their product is both used in Solar Wafers and silicon components and it looks very promising that the next battery technology is going to use Silane as a material. USA are going to create their own renewable value chain and I do believe REC is going to be the one to deliver to it.

18 months ago the main owner of Rec Silicon had to sell 25% of the company because of liquidity problems. The buyer was Kjell Inge Røkke who got it for next to nothing. Røkke is a huge industrial developer in Norway and a personal friend of Bill Clinton since the time he saved and turned around Philly Shipyard to a profitable shipyard. Røkke moved REC into Aker Horizon portfolio, where the goal is to create a full chain of ESG companies, they are doing carbon capture, Windmills, Solar and Hydrogen to name a few things. Røkke also went to the bigger funds and banks and raised USD 150 mill in a private placement valued at 10.8 NOK .

The last development is that Røkke demanded to switch out the board and become chair leader, he didn't have time to wait till May so it's happening in extra ordinary general election Thursday the 4th of Mars.

The only other company he's a chairman in where he actually is doing business is Aker ASA which is the umbrella company. Why the rush? He's a man that makes things happen and when he smells business he goes for it.

They haven't restarted the Moses Lake plant yet, but Group 14 and Violet Power are moving in next door and they need what Moses Lake produces. Time will tell but I've gone all in on this bet.

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