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Nouveau Life Pharmaceuticals Inc (OTCMKTS:NOUV) Looks To Be An Alternative Energy Player

Nouveau Life Pharmaceuticals Inc (OTCMKTS:NOUV) Looks To Be An Alternative Energy Player
Written by
Jarrod Wesson
Published on
November 1, 2017
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Today, we need to talk about a merger transaction between Nouveau Life Pharmaceuticals Inc (OTCMKTS:NOUV) and Smartco Energy Inc ("SMARTCO").The deal seems to be exciting market participants, as the amount of shares exchanged has increased quite a bit since the transaction was announced in June, 2017. Logo from http://www.smartcoenergy.comBut, there seems to be more going on, as very recently, in October, an impressive amount of shares changed hands. More than 1.5 billion shares changed hands.Have a look at the stock chart and form your own opinion before we provide more details about this business: YTD chart for NOUVNouveau Life Pharmaceuticals Inc capitalizes on the ESCO marketNouveau Life Pharmaceuticals Inc. was founded in Nevada in 1998 and is headquartered in Daytona Beach, Florida. We believe that the management has been working hard in 2017 to be suitable for potential mergers with other parties operating in the ESCO market.A large amount of documentation has been given to the OTC Markets including financial statements and letters from lawyers. We appreciate the work done and the fact that the skull and crossbones symbol was removed as a result of this good work. Many more market participants are interested in the company now, as the company seems to be in compliance with the regulatory framework. The increase in volume is positive proof of it.What's the new business? - ESCO market On June 16, 2017, the company released several strategic initiatives, which were appreciated by the market. The acquisition of Entuit Incorporated that occurred in December was highlighted. Thanks to this transaction, NOUV became "a leading operator of hardware solutions for the Municipal Lighting, Building Automation, HVAC, Indoor Lighting, and Sub-metering beside many other applications." We believe that the company recognized an opportunity in a unique niche and did not think it twice.The company noted that the acquisition strategy was going to continue, so NOUV decided to acquire more companies in the energy consumption market. We believe that the following words are key to understand NOUV's future strategy:

"Recognizing the opportunity to expand in the energy consumption market, Company Management has focused its efforts entirely this year on building a new strategic initiative to become a one stop energy savings source." Source

What type of businesses is NOUV interested in?NOUV is now operating energy service companies (ESCO). Such type of companies provide "comprehensive energy solutions to its customers, including auditing, redesigning and implementing changes to the ways the customer consumes energy, with the main goal being improved efficiency and cost savings."The market is not small. The National Society of Energy Savings Companies says that since 1990, ESCO has delivered: $45B in projects, and $50B savings guaranteed.We believe that entering this business right now is a brilliant move. The oil price has increased quite a bit in 2017 and the tendency is expected to continue. This increase in the oil price will force companies and individuals look for ways to improve energy efficiency and cost savings. NOUV will be able to provide these services.What's the company’s strategy?According to the press release, NOUV is intended to "become a one stop energy savings source for both commercial and residential applications with a focus on savings customers up to 45% on energy costs." Regional sales teams are being formed right now and the company is providing employees with comprehensive training and sales support among other educational services.On June 28, 2017, the company released that it had acquired all the shares of Smartco Energy Inc. ("SMARTCO"). As noted by NOUV, this is the first step to implement its strategy to capitalize on the ESCO market. The company communicated its intention of entering this market twelve days before, which shows its determination. Things are going fast here, thus we encourage readers to be alert on next announcements.What's Smartco?It is a one-stop for energy savings for both commercial and residential applications. We were glad to read that remarkable companies collaborate with Smartco:

  • Calpine for energy distribution
  • Kvar for peak load reductions
  • Roomcheck for hotel packages
  • Invivid for LED lighting
  • Wireless Controls Group for outdoor lighting
  • Entuit for indoor controls and HVAC controls

Jeff Burns, CEO of Nouveau Life Pharmaceuticals, Inc., was quoted:

"With the structure in place, we are now ready to build out our territories. I believe strongly we are in the right market at the right time to develop an aggressive marketing campaign similar to a franchise model in 480 territories. We can provide the one-stop shop solution and we have been approached from several entities that are ready to sign up, get trained and start selling " Source

ConclusionCurrently trading with a market cap of $1.3 million, NOUV is an interesting story among small caps. In our opinion, the company will need to release new information about how the transaction with Smartco is moving along. We encourage shareholders to be ready to assess news regarding this merger, as this is what will drive share price dynamics.We will be updating our subscribers as soon as we know more. For the latest updates on NOUV, sign up below!Image courtesy of Bill Frazzetto via FlickrDisclosure: We have no position in NOUV and have not been compensated for this article.

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