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Business Overview
Smartcool Systems Inc. is a cleantech company that specializes in air conditioning and refrigeration systems. Smartcool sproven technology delivers measurable economic & environmental benefits through the reduction of energy consumption in air conditioning and refrigeration systems. Smartcool’s flagship product is the Energy Saving Module (ESM). The Company's wholly owned subsidiary, Smartcool International Inc., is the distributor of Smartcool’s product line and conducts its business from Barbados. Smartcool International Inc. developed an international network of distributors located offices based in London, England, Sydney, Australia and Houston, Texas to build support and sales channels.
What is interesting?
The following are key investment highlights:
- A cleantech company with proven technology that makes refrigeration, air conditioning and heat pump systems more efficient and helps clients to save cost through reduced energy consumption
- Smartcool's green technology addresses both economic and environmental issues for the commercial and industrial sectors
- Huge market opportunity- SmartCool addresses Air Conditioning and refrigeration market that accounts for 15% of total energy consumption in the U.S.
- Market acceptance for its two energy saving technologies and products and current customers that include many blue chip companies
- Rapid growth in revenue- over 300% in less than 3 years. (based on 2009 estimates)
- Well established distribution networks for sales and marketing of products
Risks
SmartCool System is an early stage technology company. Its products are still not well established in the market and could face challenges from other competing products. The company is still not profitable and might require to access capital markets to raise additional financing. This could potentially result in shareholder dilution. The capital market is still tight for small cap stocks and this could present a risk if the company fails to raise much needed cash in the future. The commercial success of its technology is also not given and much will depend on the acceptance of its technology in the market place.
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