Zefiro Methane Corp. Enhances Liquidity and Project Pipeline

Zefiro Methane Corp. has announced the successful completion of a capital increase, generating gross proceeds of approximately CAD 5.0 million. This includes the placement of 7.58 million units at CAD 0.66 per unit, improving their liquidity significantly. The net proceeds, around CAD 4.70 million (USD 3.35 million), will support general corporate purposes, working capital, and potential strategic acquisitions.

The company revealed its government-funded well-plugging project backlog, valuing at USD 40 million. Notably, the largest contract, worth USD 19.6 million, involves the Ohio Department of Natural Resources. Further agreements include a USD 11.5 million contract in the Great Lakes region. New projects in Ohio, totaling USD 5.0 million, have also been announced.

Zefiro's recent exploratory contract in southeastern Ohio expands their service range, though the contract value remains undisclosed. Despite a new DCF model price target of USD 1.42, the current share price is USD 0.45, presenting potential upside.