Micro Cap Rallies on $20M Clean Energy Acquisition

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Thursday, May 1, 2025

Today brought word of a major acquisition in the clean energy industry. The announcement has re-ignited bullish sentiment in an otherwise beaten down stock.

Earlier this morning, Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF) announced the signing of a C$20 million agreement to acquire 100% of the Canadian operations of FlexEnergy Solutions, marking a strategic move to expand its presence in the natural gas-to-electricity power generation sector. 

The acquisition, financed through existing cash reserves and a new credit facility, includes 17 turbine generators, several long-term lease and service contracts, and a team of specialized technicians. Once finalized, Enterprise will become the exclusive supplier of FlexEnergy turbines in Canada, reinforcing its leadership in providing emissions-reducing energy solutions to a broad range of industries.

The deal comes at a pivotal time as power reliability becomes a growing concern in North America due to aging infrastructure and rising electricity demand. FlexEnergy’s turbine technology is known for its low emissions, high efficiency, and performance in harsh environments—making it ideal for sectors ranging from manufacturing to AI data centers. 

CEO Leonard D. Jaroszuk emphasized the company’s commitment to expanding its natural gas power generation capabilities and contributing to the transition toward cleaner energy. The acquisition aligns with industry trends favoring mobile and temporary natural gas power systems as more sustainable alternatives to diesel. 

According to the release, with an enhanced product line, recurring revenue streams, and access to new markets, Enterprise is well-positioned to capitalize on future growth opportunities across Canada's industrial landscape.

Investors appear to agree with both the positive assessment and the acquisition news, sending shares of E up 15.2% to $1.44, while U.S.-listed shares (ETOLF) climbed 11.59% to $1.0378 in late-morning trading.

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