Hamilton Facility Sale and Debt Forgiveness Drive Q2 Profit for SusGlobal
SNRG sits 19% above its 52-week low of $0.01 on elevated volume (9.6× avg).
Summary
SusGlobal sold its Hamilton property for $7.56M, booked a $1.83M gain and $1.19M in debt forgiveness, and swung to a small H1 profit. Cash improved but the company remains in severe distress with a $32.9M working capital deficit and all debt in default.
Key Events · Earnings and Guidance · SNRG
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Hamilton Facility Sold
Sold on June 30, 2026 for $7,564,775 (C$10,750,000), generating a gain of $1,829,626 and net proceeds of $7,636,026 after commissions and legal fees.
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Debt Forgiveness Boosts Results
Mortgage holders and the general contractor forgave $1,191,850 in accrued interest and certain debt, contributing to net income of $296,613 for H1 2026 versus a $2,701,149 loss a year earlier.
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Liquidity Improves but Remains Critical
Cash rose to $213,375 from $0 at year-end, and the working capital deficit narrowed to $32,937,502 from $40,416,007. All debt remains in default and the going concern warning stands.
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Belleville Facility Still Shut
Operations remain halted since January 2024 due to MECP orders. Management expects reopening in early 2027 and estimates needing $4 million to fund operations over the next 12 months.
Analysis · SNRG · Energy & Transportation
The sale of the Hamilton Facility on June 30, 2026 for $7.56 million yielded a $1.83 million gain and net proceeds of $7.64 million. In connection with the sale, mortgage holders and the general contractor forgave $1.19 million in debt. These one-time items swung the company to a net income of $296,613 for the first half of 2026, compared with a $2.7 million loss a year earlier. Cash jumped from zero to $213,375, and the working capital deficit narrowed by $7.5 million. Still, the company faces a $32.9 million working capital deficit, all debt remains in default, and the going concern warning stands. The Belleville facility remains shut, and management estimates it needs $4 million to fund operations over the next 12 months.
At the time of this filing, SNRG was trading at $0.01 on OTC in the Energy & Transportation sector, with a market capitalization of approximately $1.7M. The 52-week trading range was $0.01 to $0.08. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.