Is ATI Airtest (AAT.V) the Undervalued Stock of Q2 2021?

AAT stock
Published on: April 5, 2021
Author: Amy Liu

Climate change is a real issue, and it concerns everyone. From an environmental perspective, we can see the global shift towards clean and renewable energy everywhere we look; it’s visible in every solar panel, wind turbine, and electric vehicle.

Where businesses are concerned, it’s no longer enough to simply incorporate recycled material into your products. According to a recent Forbes survey, consumers overwhelmingly prefer supporting greener companies, with 88% of respondents saying they would favour brands who act in ways that help promote environmental sustainability.

Recognizing the importance technology plays in supporting energy efficiency, green-tech companies like AirTest Technologies Inc. (TSXV: AAT) are providing innovative solutions to help industries meet the challenges presented by climate change.

Energy Efficiency Is Key to Fighting Climate Change

AAT’s products directly address the most powerful macroeconomic paradigm shift today – the desire for energy efficiency and the need for these solutions to make sense financially.

The energy sector is responsible for over 70% of total greenhouse gas emissions. Finding clean and renewable energy sources will clearly be a key factor in reducing overall greenhouse gas emissions – and thus climate change – in any meaningful way.

But going green doesn’t have to be bad for business. In addition to the environmental implications, clean energy solutions present an opportunity for companies to capitalize on marketing and public relations opportunities, reduced energy costs, mitigate risk from fluctuations in energy prices, and meet compliance standards.

No matter how lightly you tread, everyone will leave a carbon footprint on the planet. The key to mitigating the effects of climate exchange on our planet is by minimizing our impact – and this can’t happen without sustainable energy efficiency.

Global citizens and governments alike are increasingly calling for accountability in how earth’s limited resources are handled.

A report published by the International Energy Agency (IEA) identified AC cooling as the fastest-growing contributor of energy consumption, a trend they expect to rise as incomes and population continue to grow in warmer regions.

“AC Cooling is the fastest growing use of energy in buildings. Without action to address energy efficiency, energy demand for space cooling will more than triple by 2050 – consuming as much electricity as all of China and India today.”

The problem, they found, is that in addition to increasing demand, consumers are not buying the most efficient units available. They concluded policy changes encouraging investment in more energy-efficient AC’s could reduce energy consumptions by as much as 45%

Government Spending in The US and Canada Is Focusing On Energy Efficient Buildings

AAT’s market is poised to see increased government spending and favourable policies.

President Biden has wasted no time in reversing course on a number of destructive Trump-era environmental policies. The president’s Executive Order on Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis revokes many harmful climate actions passed during the Trump administration and takes action on energy efficiency.

The US president has stated that he believes in science and considers improving energy efficiency vital in the fight against climate change.

And with a new president in office, states are quickly passing legislation to further their environmental agendas. Massachusetts Gov. Charlie Baker just signed into law a bill that builds upon the state’s previously released Decarbonization Roadmap and Clean Energy and Climate Plan for 2030. In it are goals for emission reduction, authorization of voluntary energy-efficient building codes, and increased offshore wind energy production.

Most promisingly, the bill updates greenhouse gas emission limits, committing to net zero emissions by 2050 and no less than 50% by 2030.

Fundraising Success Bringing Horsepower to Grow Revenue

ATI Airtest Technologies Inc. recently announced the closing of its non-brokered private placement at $0.12 per unit. The oversubscribed offering, which has now closed subject to TSX approval, will generate proceeds of $1,191,232. Under the terms of the offering, each unit comprises one common share of ATI stock and one non-transferable warrant, which entitles the shareholder to purchase one additional share of the company at an exercise price of $0.20 for 24 months from closing, subject to acceleration provisions.

Since AAT already has a full suite of products in its portfolio as well as existing sales networks around North America, additional capital, if used for sales and marketing purposes, can directly impact top-line revenue growth.

ATI stock’s 52-week high is $0.18, and 1-year total return is an impressive 320%.

About ATI Airtest Technologies Inc.

ATI Airtest Technologies Inc. is a green-tech company looking to improve energy efficiency and air quality in commercial buildings with its suite of proprietary sensor technologies. Motivated by green technology and the desire to provide cost performance solutions, the company has successfully installed thousands of its units in major retail chains like Canadian Tire, Ikea, and Shoppers Drug Mart, and in enclosed parkades.

Expanding upon its existing capabilities, the company is preparing to launch a new wireless technologies line with enhanced capabilities. These innovative products will help reduce carbon emissions and improve air quality while providing a cost savings advantage that will make them attractive to both new and existing customers.

Disclaimer: The company described in this article is a customer of NAI Interactive Ltd. This material is for informational purposes only and is not intended as a recommendation or offer or solicitation for the purchase or sale of any securities or financial instruments, or for transactions involving any financial instrument or trading strategy.

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