Disseminated on behalf of PowerBank Corporation.

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If you’re looking for a bargain, you should consider PowerBank Corporation (NASDAQ: SUUN).

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At current levels, the stock can be considered significantly undervalued, and I’ll show you why.

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Right now, the stock is trading between roughly $0.50 and $0.60 per share.  

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PowerBank’s market capitalization sits in the range of $25 – 30 million. So just to get to $1.00 per share (a 40% gain from current levels), that valuation rises to roughly $46 million. That’s not a dramatic shift. Especially when you consider that ...

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This Is Not a Pre-Revenue Story

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PowerBank is not an early-stage concept. It is generating real revenue. Historically in the $30 – 40+ million annual range.

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At $1.00 per share, PowerBank would trade at roughly 1x to 1.3x revenue, based on its most recent financials. Within the renewable energy sector, particularly among project developers, that is a relatively conservative multiple. Comparable renewable energy developers often trade between roughly 1x and 3x revenue, depending on growth, project pipeline, and balance sheet strength.

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In other words, even at $1.00, PowerBank would not be priced as a premium growth story. It would simply be priced as a functioning business.

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A Value Disconnect

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Another way to frame the opportunity is through enterprise value: a measure that accounts for both equity and debt.

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PowerBank’s enterprise value is estimated at roughly $65 – 75 million, significantly higher than its current equity market capitalization. The gap exists because investors are likely discounting the equity due to concerns around debt levels and execution risk.

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But that gap doesn’t have to fully close to justify a higher stock price. Even a partial normalization, where the market gains confidence in the company’s ability to manage its balance sheet and maintain operations, could push the equity value meaningfully higher.

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And to be sure, the core economics are intact. Indeed, the underlying business is not fundamentally broken.

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PowerBank is historically generating roughly $7 – 9 million in gross profit, with margins in the low- to mid-20% range. That suggests the company’s projects are economically viable and that demand for its services exists.

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The challenge has been less about whether the business works and more about how efficiently it can scale, manage costs, and navigate financing conditions.

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Stability, Not Hypergrowth

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The most important takeaway is that a move to just $1.00 does not require aggressive assumptions.

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Now, over the past two years, many solar and renewable energy stocks have been repriced lower due to rising interest rates, tighter financing conditions, and broader market risk aversion. Smaller companies like PowerBank were particularly affected.

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But the underlying demand drivers (electrification, grid expansion, and the continued buildout of renewable infrastructure) have not disappeared.

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As sentiment toward the sector stabilizes, companies that are already generating revenue and delivering projects may begin to attract renewed attention.

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If investors begin to see it not as a high-risk outlier, which it isn’t, but as a functional renewable energy developer with real revenue and viable margins, the valuation framework changes.

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And under that framework, a move higher is not speculative. It’s simply a case of the market catching up to the fundamentals.

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Disclaimer

This report contains forward-looking statements and forward-looking information ‎within the meaning of Canadian securities legislation (collectively, “forward-looking ‎statements”) that relate to the Company’s current expectations and views of future events. ‎Any statements that express, or involve discussions as to, expectations, beliefs, plans, ‎objectives, assumptions or future events or performance (often, but not always, through the ‎use of words or phrases such as “will likely result”, “are expected to”, “expects”, “will ‎continue”, “is anticipated”, “anticipates”, “believes”, “estimated”, “intends”, “plans”, “forecast”, ‎‎”projection”, “strategy”, “objective” and “outlook”) are not historical facts and may be ‎forward-looking statements and may involve estimates, assumptions and uncertainties ‎which could cause actual results or outcomes to differ materially from those expressed in ‎such forward-looking statements. In particular and without limitation, this report ‎contains forward-looking statements pertaining to the Company’s expectations regarding its industry trends and overall market growth; the Company’s growth strategies the expected energy production from the solar power project mentioned in this press release; the receipt of additional project incentives; potential future revenues, gross profits, valuation and share price; and the size of the Company’s development pipeline. No assurance ‎can be given that these expectations will prove to be correct and such forward-looking ‎statements included in this report should not be unduly relied upon. These ‎statements speak only as of the date of this report.‎

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Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward looking statements included in this report, the Company has made various material assumptions, including but not limited to: obtaining the necessary regulatory approvals; that regulatory requirements will be maintained; general business and economic conditions; the Company’s ability to successfully execute its plans and intentions; the availability of financing on reasonable terms; the Company’s ability to attract and retain skilled staff; market competition; the products and services offered by the Company’s competitors; that the Company is able to satisfy compliance with Nasdaq listing rules, including the Minimum Bid Price Rule; that the Company’s current good relationships with its service providers and other third parties will be maintained; and government subsidies and funding for renewable energy will continue as currently contemplated. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and the Company cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, investors should not place undue reliance on these forward-looking statements.

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Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those listed under “Forward-‎Looking Statements” and “Risk ‎Factors” in the Company’s most recently completed Annual Information Form, and other public filings of the Company, which include: the Company may be adversely affected by volatile solar power market and industry conditions; the execution of the Company’s growth strategy depends upon the continued availability of third-party financing arrangements; the Company’s future success depends partly on its ability to expand the pipeline of its energy business in several key markets; governments may revise, reduce or eliminate incentives and policy support schemes for solar and battery storage power; general global economic conditions may have an adverse impact on our operating performance and results of operations; the Company is unable to satisfy compliance with Nasdaq listing rules, including the Minimum Bid Price Rule; the Company’s project development and construction activities may not be successful; developing and operating solar Project exposes the Company to various risks; the Company faces a number of risks involving Power Purchase Agreements (“PPAs”) and project-level financing arrangements; any changes to the laws, regulations and policies that the Company is subject to may present technical, regulatory and economic barriers to the purchase and use of solar power; the markets in which the Company competes are highly competitive and evolving quickly; an anti-circumvention investigation could adversely affect the Company by potentially raising the prices of key supplies for the construction of solar power projects; foreign exchange rate fluctuations; a change in the Company’s effective tax rate can have a significant adverse impact on its business; seasonal variations in demand linked to construction cycles and weather conditions may influence the Company’s results of operations; the Company may be unable to generate sufficient cash flows or have access to external financing; the Company may incur substantial additional indebtedness in the future; the Company is subject to risks from supply chain issues; risks related to inflation and tariffs; unexpected warranty expenses that may not be adequately covered by the Company’s insurance policies; if the Company is unable to attract and retain key personnel, it may not be able to compete effectively in the renewable energy market; there are a limited number of purchasers of utility-scale quantities of electricity; compliance with environmental laws and regulations can be expensive; corporate responsibility may adversely impose additional costs; the future impact of any global pandemic on the Company is unknown at this time; the Company has limited insurance coverage; the Company will be reliant on information technology systems and may be subject to damaging cyberattacks; the Company may become subject to litigation; there is no guarantee on how the Company will use its available funds; the Company will continue to sell securities for cash to fund operations, capital expansion, mergers and acquisitions that will dilute the current shareholders; and future dilution as a result of financings.

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The Company undertakes no obligation to update or revise any ‎forward-looking statements, whether as a result of new information, future events or ‎otherwise, except as may be required by law. New factors emerge from time to time, and it ‎is not possible for the Company to predict all of them, or assess the impact of each such ‎factor or the extent to which any factor, or combination of factors, may cause results to ‎differ materially from those contained in any forward-looking statement. Any forward-‎looking statements contained in this report are expressly qualified in their entirety by ‎this cautionary statement.‎

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