UGE International Ltd. (TMX: UGE, OTCQB: UGEIF) Target Price: C$1.02 / $0.78 INVESTMENT HIGHLIGHTS. INITIATING COVERAGE (June 13, 2018)

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1 INITIATING COVERAGE () Equity Energy / Solar UGE International Ltd. (TMX: UGE, OTCQB: UGEIF) Target Price: C$1.02 / $0.78 We initiate coverage of UGE International Ltd. (TMX: UGE, OTCQB: UGEIF, UGE ) with a price target of C$1.02 / $0.78. UGE is an emerging growth company in the alternative energy sector focused on providing renewable solar energy solutions for commercial customers. With headquarters in the US and operations in Canada and the Philippines, UGE is positioned to benefit from sales execution and a growing backlog of commercial contracts. UGE also stands to benefit from structural changes and technological innovation in the solar industry, which has dramatically lowered costs for businesses seeking to switch to distributed solar energy solutions. The company seeks to differentiate its business though offering comprehensive turnkey solutions that include design, engineering, procurement and construction with a goal of making it as seamless and cost effective as possible for commercial customers to switch to renewable solar power. We see considerable value in shares, which trade with a market capitalization of just $10.7mn, just 0.4x 2018E revenues of $26.9mn and a fraction of the company s current $41.2mn backlog. INVESTMENT HIGHLIGHTS UGE targeting large opportunity in commercial solar Unlike past business cycles, the solar energy sector appears poised for significant growth independent of subsidies, as industry participants benefit from dropping panel prices and an overall distributed solar cost that has passed grid parity, providing less expensive energy to clients. Indeed, according to Allied Market Research, the global market for solar energy is expected to grow from $86 billion in 2015 to reach $422 billion by 2022E. UGE appears well positioned to target this opportunity, with a turnkey solution for commercial customers that can enable them to save 20% - 40% versus utility energy prices with no upfront cash investment. The company estimates that less than 1% of the market for commercial solar power installations in its markets have been developed, with more than 6.4mn potential rooftops in the US and Canada alone offering a large market opportunity with a long tail. UGE executing on sales growth, acquisitions We see several potential catalysts ahead for UGE as the company gains scale and progresses towards its intermediate goal of reaching a $100mn revenue run rate with double-digit EBITDA margins. The company has already demonstrated significant growth over the last several years from sales execution and acquisitions with revenues climbing by 260.5% from $5.8mn in 2016 to $20.9mn in 2017 following the company s acquisition of assets from Carmanah Technologies Corp. 1Q18 growth was also impressive, with revenue up 10% YoY at $6.1mn. Looking ahead, UGE appears well on its way to double-digit sales growth again in 2018E and 2019E, as management reported a growing backlog of $41.2mn at the end of 1Q18. Initiate coverage with a price target of C$1.02 / $0.78 We initiate coverage of UGE with a price target of C$1.02 / $0.78. We see UGE as an intriguing speculative growth company seeking to capture growth opportunities in the commercial solar market. Key upcoming events include the execution of the company s $41mn+ backlog, new business activities and potential acquisitions, as well as a goal of reaching adjusted EBITDA profitability by the end of Stock Details (6/11/2018) TMX : OTCQB: Sector / Industry Key Ratios FY17A FY18E FY19E Gross margin (%) Operating Margin (%) (7.2) (0.3) 3.2 Adj. EBITDA Margin (%) (2.1) Net margin (%) (9.4) (4.3) 1.1 P/ Revenue (x) EV / EBITDA (x) (38.2) EV/ Revenue (x) Source: SeeThruEquity Research Share Price Performance (C$) Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Source: Yahoo! Finance UGE UGEIF Energy / Solar Price target C$1.02 / $0.78 Recent share price C$0.34 / $0.26 Basic Shares o/s (mn) 41.0 Market cap (in $ mn) C$13.8 / $ week high/low C$0.72 / C$0.21 Key Financials ($000 unless specified) FY17A FY18E FY19E Revenues Adj. EBITDA (0.4) EBIT (1.5) (0.1) 1.2 Net income (2.0) (1.2) 0.4 EPS ($) (0.05) (0.03) SeeThruEquity, LLC. Important disclosures appear at the back of this report. 1 P age

2 SUMMARY TABLE Figure 1. Summary Table (Pricing as of June 11, 2018 Share data Balance Sheet data (FY 1Q18) Key personnel: Recent price: C$0.34 / $0.26 Total assets: $10.5mn CEO Nick Blitterswyk Price target: C$1.02 / $0.78 Total debt*: $7.4mn CFO Jimmy Vaiopoulos 52-week range: C$0.72 C$0.21 Equity: (2.8mn) Independent Chairman Nicholas Parker Average volume:* 73,493 W/C: (2.5mn) VP, Sales & Marketing Robert van Duynhoven Market cap*: C$13.8 / $10.7mn ROE (2017): NM Book value/share: ($0.07) ROA (2017): (14.6%) Director, Project Development Director, Corporate Development Mateo Chaskel Christina Boyd Cash/share $0.04 Current ratio: 0.7 VP, Project Deployment Scott Matthews Dividend yield: 0.00% Asset turnover: 2.3 Risk profile: High / Speculative Debt/Cap: 100% * three month average volume (number of shares) ** 1Q18 Balance Sheet data unless noted Estimates Valuation FY December Rev ($mn) EBITDA ($mn) EPS ($) EV/Rev (x) P/Rev (x) P/E (x) 1Q17A 6.1 (0.1) (0.02) 0.4x 0.7x NM 2Q17A 6.4 (0.0) (0.01) 0.4x 0.6x NM 3Q17A (0.00) 0.4x 0.6x NM 4Q17A x 0.6x 279.0x 2015A 2.2 (2.2) (0.42) 4.8x 7.4x NM 2016A 5.8 (2.0) (0.04) 1.8x 2.8x NM 2017A 20.9 (0.4) (0.05) 0.5x 0.8x NM 2018E (0.03) 0.4x 0.6x NM 2019E x 0.5x 27.2x Source: SeeThruEquity Research, Company filings INVESTMENT THESIS We initiate coverage of UGE International Ltd. (TSXV: UGE, OTCQB: UGEIF, UGE ) with a price target of C$1.02 / $0.78. UGE is an emerging growth company in the alternative energy sector focused on providing renewable solar energy solutions for commercial and industrial customers. UGE operates in the US, Canada, and the Philippines, and offers a full suite of comprehensive commercial solar solutions, including turn-key engineering, procurement, project management and construction. By offering a full-service commercial solar solution, UGE seeks to provide a differentiated customer experience throughout the full design-build lifecycle of the project from planning to implementation. This strategy positions the company to benefit from growing demand for solar energy as costs fall without having to overcome the significant pricing risk faced by companies focused on providing component solar panel parts alone. Moreover, UGE appears SeeThruEquity, LLC. Important disclosures appear at the back of this report. 2 P a g e

3 well positioned to benefit from structural demand for solar energy. Unlike past business cycles, the solar energy sector appears poised for significant growth independent of subsidies, as industry participants benefit from dropping panel prices and an overall distributed solar cost that has passed grid parity, providing less expensive energy to clients. We see several potential catalysts ahead for UGE as the company gains scale and progresses towards its intermediate goal of reaching a $100mn revenue run rate with double-digit EBITDA margins. The company has demonstrated significant growth over the last several years from sales execution and acquisitions with revenues climbing from $5.8mn in 2016 to $20.9mn in Looking ahead, the company appears well on its way to improving upon sales again in 2018E and 2019E, as management reported a growing backlog of $41.2mn at the end of 1Q18, and guided to reach adjusted profitability by the end of We also note that UGE management holds a significant portion of shares, with over 50% of shares controlled by directors and officers of the company, according to a May 2018 investor presentation. We see UGE as an emerging company in the solar industry, which offers a strong growth profile combined with a compelling valuation. At the recent price of C$0.34 / $0.26, UGE trades with a market capitalization of $10.7mn, just 0.5x and 0.4x 2017A and 2018E revenues, respectively. If achieved, the target of C$1.02 / $0.78 implies a fair Enterprise Value of $37.9mn, including total debt of $7.4mn. This target represents a valuation of less than the company s backlog and 1.0x EV/ 2019E revenues of $36.5mn, which appears fair in our view relative to peer valuations in the space as well as our discounted cash flow model. UGE benefitting from improved economics of distributed solar With its focus on providing experience and expertise including engineering, design, and implementation of distributed solar solutions for the commercial market, UGE appears well-positioned to capitalize from improving economics in the solar energy market. Indeed, one of the most significant impediments of broader adoption of solar power in the past has been that adoption of solar power required subsidies to enable efficient costs. In the last several years, however, the industry has benefitted not only from growing preferences for renewable energy, but also from significant technological innovation and lower costs. This innovation has enabled improved energy conversion efficiency and dramatically lower panel costs actually making distributed solar installations cost-efficient versus fossil fuel-based sources such as coal and natural gas. On its 1Q18 results call, UGE noted that it has costs on its projects fall from over $10 per watt when the business first began to well below $1 per watt on current projects. According to company materials, UGE now has the advantage of offering a solution for clients that enables them to buy energy in a range of 20% to 40% lower than utility rates with no upfront capital investment. This full service approach from design to implementation lowers the barriers for commercial clients to make the switch to solar power SeeThruEquity, LLC. Important disclosures appear at the back of this report. 3 P a g e

4 UGE backlog expands as company stands out with project expertise, full service solution UGE is targeting a massive opportunity in commercial solar energy. The solar energy market is growing rapidly as industry pricing has approached and even surpassed grid parity. According to Allied Market Research, the global market for solar energy is expected to grow from $86 billion in 2015 to reach $422 billion by 2022E. With improving industry economics, it seems more possible than in past industry cycles to consider the vast market opportunity for commercial solar installations. According to company materials, UGE believes the total market opportunity for commercial rooftops in its core markets of US and Canada is less than 1% penetrated. Indeed, UGE management estimates that there are 6.4mn potential rooftops suited for distributed solar for commercial, industrial, government and agricultural customers in the US and Canada, providing a large opportunity with a long tail for growth. UGE has significant capabilities to help customers take advantage of falling prices, with a turnkey solution that simplifies a complex design and installation process, with no upfront cash commitment from customers. The company s expertise is evidenced by its growth in both revenues and backlog. Revenues increased by 260.5% in 2017 to $20.9mn from $5.8mn in 2016, due to sales execution and the acquisition of Canadian solar assets from Carmanah Technologies Corp. Revenues were up 10% YoY in 1Q18, coming in at $6.1mn versus $5.5mn in 1Q17. Strong backlog led by Peterborough Ontario sites. At the end of 1Q18, UGE s backlog was $41.2mn, rising by more than $11mn during the period representing an impressive increase versus revenues recognized of $6.1mn. Key projects in UGE s backlog include a large contract in Canada for 15 new solar power sites for Peterborough Solar Projects Corporation in Peterborough, Ontario. This project is expected to provide revenue visibility through the end of 2018 and into early 2019, with new projects stemming from sales efforts in the US and the Philippines SeeThruEquity, LLC. Important disclosures appear at the back of this report. 4 P a g e

5 COMPETITIVE LANDSCAPE UGE operates in the renewable energy market providing solar power solutions for commercial and industrial companies. UGE faces competition from alternative sources for energy, both from other means of renewable energy such as wind, as well as from traditional sources of baseload power, including fossil fuelbased sources and nuclear energy. Competitive forces in the industry include pricing, switching costs, customer attitudes towards renewable energy, and regulatory factors. Additionally, given the complex task of designing, engineering, installing, and maintaining distributed solar power, experience and service levels also represent important competitive factors. UGE faces competitive risks including changing regulatory and subsidy policies, which affect prices and switching costs, as well as competition from larger companies, many of whom have access to greater financial resources, brand recognition, and broader sales and marketing distribution. Additionally, the market for solar energy has traditionally been viewed as a price-sensitive boom and bust industry, which prospers amid high gas, oil, and coal prices, and suffers as fossil fuel commodity prices decline. In recent years, however, the solar power industry has benefitted from technological innovation, enabling a sharp contraction of solar energy costs due to lower panel prices and improved conversion of sunlight to energy. Source: Company With a specialization on providing a full service, turnkey solution for commercial projects from design to implementation, UGE is pursuing a competitive strategy of differentiation, with a focus on enabling distributed solar power for commercial customers in the US, Canada, and the Philippines. Management views this market as fragmented, enabling UGE to differentiate its market presence with experience and expertise designing and installing cost-effective commercial solar, while still benefitting from the larger growth trends towards distributed solar power SeeThruEquity, LLC. Important disclosures appear at the back of this report. 5 P a g e

6 FINANCIALS AND FUTURE OUTLOOK Recent Results UGE reported strong growth in 1Q18 with revenues of $6.1mn, representing growth of approximately 10% YoY from $5.5mn in the prior year period. UGE management attributed the growth to the recognition of revenues on a large project in Peterborough, as well as growth in projects in the Philippines. During 1Q18, UGE reported adjusted EBITDA of ($68,548), versus a loss of ($183,000) in the year ago period. The company reported EPS of ($0.02). UGE ended the quarter with a backlog of $41.2mn. Growth in the backlog was due to $11.3mn in new bookings, largely from commercial clients. The company ended the quarter with current assets of $7.2mn and total assets of $10.5mn, with total liabilities of $13.3mn including $7.4mn in total debt. Figure 3. UGE business overview: 1Q18 versus 1Q17 Fiscal Period 1Q18 1Q17 Revenue (mn) $6.1mn $5.5mn Gross Profit $1.1mn $0.6mn Gross Profit Margin (%) 17.9% 10.7% Adj. EBITDA ($0.1mn) ($0.2mn) Adj. EBITDA (%) (1%) (3.3%) EPS ($0.02) ($0.01) Key Assumptions Source: Company UGE has demonstrated significant growth through sales execution and acquisitions, including the acquisition of Endura Energy Project Corp Ltd in 1Q16, as well as Canadian solar assets from Carmanah Technologies Corp in 2Q17. UGE reported a backlog of $41.2mn in 1Q18, reporting a healthy flow of $11.3mn in new projects confirmed during the quarter, well ahead of revenue recognized of $6.1mn. High growth planned from sales execution as well as acquisitions. UGE has stated its intention to reach an annualized revenue run rate of $100mn by the end of 2020, which we believe assumes multiple future acquisitions. We have assumed the company is able to execute on sales momentum in the commercial solar market, driven by the improved tradeoff between the cost of distributed solar power versus traditional energy sources, as well as acquisitions. Our estimates call for revenue to grow by 28.3% from $20.9mn in 2017 to reach $26.9mn in 2018E. We have modeled $36.5mn in revenue 2019E. The company generates relatively stronger gross margins on commercial projects, and we have therefore modeled gross margins to expand slightly over our forecast period from 19.5% in 2017 to 21% by 2025E. We believe that management is targeting sustainable positive adjusted EBITDA by the end of this calendar year, and have therefore modeled SG&A leverage as the business grows. We modeled adjusted EBITDA to be positive during the second half of 2018 and for the full year 2019E, with margins expanding thereafter until the company reaches its intermediate term goal of 10% SeeThruEquity, LLC. Important disclosures appear at the back of this report. 6 P a g e

7 In USD mn UGE International Ltd. Figure 4. UGE estimated Revenue & Adjusted EBITDA ($mn) $50,000 $3,000 $40,000 $2,000 $30,000 $1,000 $0 $20,000 ($1,000) $10,000 ($2,000) $ E 2019E 2020E ($3,000) Revenue Adj EBITDA Balance Sheet & Financial Liquidity Our analysis assumes that UGE is able to access capital as needed for growth acquisitions and to fund operations until the company reaches recurring free cash flow, which could be possible by the end of the year, assuming continued growth and execution of management s plan. UGE ended 1Q18 with current assets of $7.2mn and total assets of $10.5mn, with total liabilities of $13.3mn including $7.4mn in total debt. The company used ($1.1mn) in operating cash flows during 1Q18, including the effects of working capital. UGE has a going concern qualification from its auditors, which is appropriate given that it has negative shareholders equity and negative cash flows. Figure 5. Key Performance Indicators of UGE thru FY2019E 50% 40 0% -50% 2016A 2017A 2018E 2019E A 2017A 2018E 2019E -100% -20 Gross Margin Operating Margin Net Margin Revenue Gross Profit Operating Inc. Net Income FCF Source: SeeThruEquity Research SeeThruEquity, LLC. Important disclosures appear at the back of this report. 7 P a g e

8 VALUATION We valued UGE using both discounted cash flow and peer valuation methods to determine a price target of C$1.02 / $0.78. We see UGE as offering an attractive valuation at the recent price of C$0.34 / $0.26, as shares trade at a fraction of revenues and backlog. Indeed, at recent prices UGE has a market capitalization of C$13.8mn / $10.7mn, compared to a backlog of $41.2mn at the end of 1Q18 and 2018E revenues of $26.9mn. The target of C$1.02 / $0.78 implies a fair Enterprise Value of $37.9mn, including total debt of $7.4mn. This target represents a valuation of less than the company s backlog and 1.0x EV/ 2019E revenues of $36.5mn, which appears fair in our view relative to peer valuations in the space as well as our discounted cash flow model. Discounted Cash Flow (DCF) Valuation UGE is an emerging solutions provider in the solar energy industry with operations in the US, Canada and the Philippines. As detailed in the Financial & Future Outlook portion of this report, UGE has high expectations for growth as it and sees the industry at an inflection point driven by improved economics of solar power versus traditional fossil fuel energy sources, bolstered by acquisitions. Our model assumes the company is able to execute an aggressive sales and installation activity from 2018E through the end of our forecast period in 2027E, as outlined below. We believe the company is targeting higher revenue levels than our forecast, supported by future acquisitions in the sector, as management has stated an intermediate term goal of reaching a run rate of $100mn in revenue and $10mn in adjusted EBITDA. The following DCF valuation of UGE runs through FY2025E and yields a valuation of $0.72 (C$0.94) per share. Overall, the model assumes 20%+ sales growth and execution on the company s pipeline investment from E, with annual growth moderating to 10% by the end of our forecast period in 2025E. As stated we believe the company will seek to bolster this forecast with accretive acquisitions. We assumed that UGE reaches sustainable free cash flow by the end of the year, with 2019E being the first full year to generate free cash flow. We assumed a modest use of working capital throughout the forecast period as the company invests in growth. We discounted cash flows at a weighted average cost of capital of 15% and assumed a terminal growth rate of 5% at the end of FY2025E, yielding an Equity Value of $29.5mn, as detailed in the table below. $ 000 FY18E FY19E FY20E FY21E FY22E FY23E FY24E FY25E Revenue 26,860 36,500 45,260 55,217 65,156 74,278 83,192 91,511 EBIT (93) 1,168 2,263 3,534 4,822 6,165 7,654 9,151 Less: Tax ,239 1,988 2,516 3,042 NOPLAT (197) 1,168 2,263 2,987 3,582 4,177 5,138 6,109 Changes in working capital (121) (60) (78) (98) (121) (148) (179) (214) Depreciation & Amortization Capex (160) (173) (250) (270) (400) (432) (467) (504) FCFF (274) 1,194 2,199 2,888 3,335 3,877 4,779 5,685 Discount factor PV of FCFE (253) 960 1,537 1,755 1,763 1,782 1,911 1,977 Sum of PV of FCFE 11,433 Terminal cash flow 59,771 PV of terminal cash flow 20,784 Enterprise value 32,216 Less: Debt 7,374 Add: Cash & Investments 4,700 Equity value 29,542 Shares Outstanding 41.0 Value per share ($) SeeThruEquity, LLC. Important disclosures appear at the back of this report. 8 P a g e

9 Terminal growth rate (%) UGE International Ltd. Summary conclusions Key assumptions DCF FV ($ per share) 0.72 Beta 2.0 Recent price ($ per share) 0.26 Cost of equity 16.5% Upside (downside) 177.3% Cost of debt (post tax) 12.8% WACC 15.0% Terminal Growth Rate 5.0% Source: SeeThruEquity Research Figure 6. Sensitivity of Valuation WACC vs. Terminal Growth Rate WACC (%) USD % 14.5% 15.0% 15.5% 16.0% 4.00% % % % % % Source: SeeThruEquity Research SeeThruEquity, LLC. Important disclosures appear at the back of this report. 9 P a g e

10 Peer Group Analysis We also evaluated UGE using a relative valuation analysis with peer companies in the alternative industry space, using revenue and enterprise value as valuation metrics given that the company is not yet profitable. The peer group includes First Solar (FSLR) a market leader for the broader solar energy industry, as well as SunPower (SPWR), Canadian Solar (CSIQ), Carmanah Technologies Corporation (CMH.TO) and SunRun Inc., among others. As illustrated in the table below, there is a range of size and valuations levels among the peer group. Given that UGE is not yet profitable, in our view, the most appropriate valuation metrics are based on the revenue base generated by the peer companies. As illustrated below, UGE trades at a significant discount to peers based on Price to Revenue and EV/ Revenue metrics. The target of $0.78 suggests a valuation of 1.4x EV/ 2018E revenue of $26.9mn and 1.0x 2019E EV/Revenue of $36.5mn, which still represents less than 1x backlog and a modest discount to the peer group valuation. Figure 7. Comparable Valuation * Company Mkt cap EV/Revenue P/S P/E Ratio TCKR ($ mn) TY NY TY TY First Solar FSLR 5, x 1.5x 2.1x 29.5x Canadian Solar CSIQ x 0.6x 0.2x 6.9x Solar Edge SEDG 2, x 2.8x 2.7x 16.4x SunRun Inc RUN 1, x 2.8x 1.9x 11.3x Vivint Solar VSRL x 3.6x 1.3x 126.7x Just Energy Group JE x 0.3x 0.2x 3.3x Carmanah Technologies Corporation CMH x 1.2x 1.4x 23.9x SunPower Corp SPWR x 1.1x 0.5x NM Average 1.9x 1.7x 1.3x 31.1x UGE Intl Ltd UGE x 0.5x 0.4x N/A Premium (discount) (68.5%) (74.0%) (69.2%) N/A Source: Yahoo! Finance, SeeThruEquity Research, peer data as of 6/7/ SeeThruEquity, LLC. Important disclosures appear at the back of this report. 10 P a g e

11 RISK CONSIDERATIONS Competition The solar energy market has an evolving competitive landscape. UGE primarily focuses on commercial and industrial installations, and may compete with companies with access to greater financial and sales and marketing resources. The company also competes with traditional sources of energy, and would be exposed if the economic tradeoff between solar and traditional sources of energy were to shift dramatically due to falling fossil fuel prices. Regulation Risk UGE operates in a highly regulated industry and would be exposed to changes in utility policies or regulations in the US or Canada that could affect its costs or competitiveness. Solar Market Expectations that UGE will continue to demonstrate growth are supported by a fundamental assumption that solar power gains share from traditional fossil fuel-based sources of power. While distributed solar has reached grid parity for many of UGE s commercial customers in the current regulatory and commodity pricing environments, these conditions can change, or other factors may arise that affect the solar power market. We expect UGE will be affected by investor perceptions for the broader solar energy market. Balance Sheet & Financial Solvency UGE operates in a capital intensive business and may require significant financing to execute its growth initiatives, for future acquisitions, and to fund working capital until the company begins to generate sustainable recurring cash flow. If the company is unable to gain access to financing at attractive terms, investors may face dilution, or the company may be unable to execute its business plan. This analysis has assumed that UGE has access to at least $5mn in incremental capital to support projects until the company reaches cash flow breakeven, as well as access to capital to make growth acquisitions. The company s audited financials include a going concern qualification. Low Price Stock UGE is a small company with a market capitalization of less than $25mn at the time of this analysis. Small companies of this size present could have increased risks and high volatility. Acquisitions Acquisitions will likely be a core part of UGE s growth plan. UGE may be unable to identify and acquire companies to meet its plan, and there is always uncertainty related to integrating acquired companies, which can make it difficult to model future results SeeThruEquity, LLC. Important disclosures appear at the back of this report. 11 P a g e

12 Management Team Nick Blitterswyk, CEO, Co-Founder Nick founded UGE with a focus on distributed renewables to address the world s energy challenges. His leadership and belief in a productive and enjoyable company culture has grown UGE into a global leader. Raised on a Canadian nature reserve, Nick is a Fellow of the Society Actuaries with previous experience at JPMorgan and AIG. Nicholas Parker, Independent Chairman Nicholas Parker is currently Founding Managing Partner of Global Acceleration Partners Inc. ( GAP ), a financial enterprise established in 2012 to address global megatrends shaping basic needs for clean energy, food, water and smart infrastructure by accelerating cross-border deployment of technologies and business models into emerging economies, particularly China. Nicholas launched the Cleantech Group ( CTG ) in 2002, a market-leading research and advisory company that he chaired until the end of Under his leadership, CTG helped mobilize over $6B in private equity, convened 10,000+ decision-makers around the world, and analysed 16,000+ cleantech innovators while serving major corporations, governments and institutions in Asia, Europe, the Middle East. and North America, creating a global ecosystem. Prior to starting CTG, Nicholas accumulated over 15 years experience forming and investing funds worldwide through limited partnerships, family offices, corporate funds and endowments. During this time, he initiated the first trans-atlantic "sustainability" private equity fund, the first pan-asian fund, the first cross-border India fund and participated in the second ever solar IPO on NASDAQ. Jimmy Vaiopoulos, CFO Jimmy was born and raised in Toronto, Canada and before joining UGE as the CFO, Jimmy worked at KPMG in both audit and advisory practices with a focus on energy and infrastructure markets. While working with KPMG, Jimmy worked with small renewable independent power producers to utility scale solar projects in different parts of The Americas. In the energy industry, Jimmy worked in audit, project finance and M&A where he was involved with transactions ranging from $50 million to $3+ billion. Jimmy then went on to KPMG s Santiago office in Chile where he worked and lived for a year while learning Spanish. Jimmy holds a Bachelor of Engineering Science from Western University and an Honours Business Administration from the Richard Ivey School of Business and is a member of the Chartered Professional Accountants of British Columbia. Robert van Duynhoven, VP, Sales and Marketing Robert is focused on strategic growth and operational excellence for UGE in Canada. He is a LEED Green Associate, Professional Engineer, bringing over 20 years of experience in business development and management from start-ups to Fortune 500 companies. As an entrepreneur, Robert started two companies in manufacturing automation and retail product development. He holds a B.Eng. in Mechanical Engineering from McGill University and a professional Renewable Energy certification from Massachusetts Institute of Technology. Robert is passionate about renewable energy technologies and is very excited about contributing to UGE s goal in bringing more affordable, cleaner renewable energy to the world. Scott Matthews, Vice President, Projects In his Vice President, Projects role at UGE, Scott is responsible for overseeing all project engineering, construction, and operations worldwide. Prior to joining UGE, Scott was Director of Construction at major US solar developer Recurrent Energy. He brings over 20 years of project and construction management SeeThruEquity, LLC. Important disclosures appear at the back of this report. 12 P a g e

13 experience to his role at UGE. Scott has led the construction of over 220 MW portfolio projects in Ontario as well as projects in the US totaling over 1GW. He has also served in Senior Manager roles at several large Canadian residential development and construction firms, and responsible for over $500M of residential, resort, and commercial developments in Canada Christina Boyd, Global Director, Corporate Development Christina leads strategic initiatives at UGE and drives investor relations and stakeholder outreach. Before joining UGE, Christina covered the world of business and capital markets as a television producer at BNN and Bloomberg, where she focused on the global energy transition. She gained insight into the growth of renewable energy from the world s top business leaders, economists, policy makers, and innovators. Christina holds a Bachelor of Commerce and studied international business in the Netherlands. Mateo Chaskel, Director, Development Mateo is responsible for leading and managing all development related concerns for UGE projects globally, working closely with the business development team to develop successful projects, markets, and portfolios. In this role, Mateo coordinates UGE s project development checklists, project finance efforts, regulatory and permitting knowledge, and ensures a smooth transition to the construction team for build-out. Mateo has experience structuring, modeling, and contracting deals including traditional Power Purchase Agreements, Community Distributed Generation projects, cash deals, and other complex transactions that take advantage of a number of nationwide and/or local incentives SeeThruEquity, LLC. Important disclosures appear at the back of this report. 13 P a g e

14 FINANCIAL SUMMARY Figure 8. Income Statement Figures in $000 unless specified FY15A FY16A FY17A FY18E FY19E Revenue YoY growth % 260.5% 28.3% 35.9% Cost of sales Gross Profit Margin 3.2% 23.0% 19.5% 18.8% 19.0% Operating expenses EBIT (2.2) (3.0) (1.5) (0.1) 1.2 Margin (100.1%) (51.9%) (7.2%) (0.3%) 3.2% EBITDA (2.2) (3.0) (1.1) (0.0) 1.2 Margin (100.1%) (51.6%) (5.1%) (0.1%) 3.4% Other income/ (expense) 0.0 (0.1) (0.5) (1.0) (0.8) Profit before tax (2.2) (3.1) (2.0) (1.1) 0.4 Tax 0.0 (0.1) (0.0) Net income to Common (5.6) (1.1) (2.0) (1.2) 0.4 Margin (250.3%) (18.7%) (9.4%) (4.3%) 1.1% EPS (per share) (0.42) (0.04) (0.05) (0.03) 0.01 Source: SeeThruEquity Research. Figure 9. Balance Sheet Figures in $000, unless specified FY15A FY16A FY17A FY18E FY19E Current assets Other assets Total assets Current liabilities Other liabilities Shareholders equity (6.3) (2.0) (2.0) (1.1) 0.5 Total liab and shareholder equity Source: SeeThruEquity Research Figure 10. Cash Flow Statement Figures in $000, unless specified FY15A FY16A FY17A FY18E FY19E Cash from operating activities (2.2) (2.2) (0.4) (0.9) 0.8 Cash from investing activities (0.0) (2.0) (1.4) (0.7) (0.7) Cash from financing activities Net inc/(dec) in cash (0.2) Cash at beginning of the year Cash at the end of the year Source: SeeThruEquity Research SeeThruEquity, LLC. Important disclosures appear at the back of this report. 14 P a g e

15 About UGE International Ltd. UGE delivers immediate savings to businesses through the low cost of solar energy. We help commercial and industrial clients become more competitive by providing distributed renewable energy solutions at no upfront cost, generating long term economic and environmental returns. With over 360 MW of global experience, we work daily to power a more sustainable world SeeThruEquity, LLC. Important disclosures appear at the back of this report. 15 P a g e

16 Contact Amit Tandon SeeThruEquity (646) Disclosure This research report has been prepared and distributed by SeeThruEquity, LLC ( SeeThruEquity ) for informational purposes only and does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any transaction. This report is based solely on publicly available information about the company featured in this report which SeeThruEquity considers reliable, but SeeThruEquity does not represent it is accurate or complete, and it should not be relied upon as such. All information contained in this report is subject to change without notice. This report does not constitute a personal trading recommendation or take into account the particular investment objectives, financial situation or investment decision. Readers should consider whether any information in this report is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, many of which are beyond the company s control. Actual results could differ materially and adversely from those anticipated in such forward-looking statements as a result of certain industry, economic, regulatory or other factors. SeeThruEquity is not a FINRA registered broker-dealer or investment adviser. SeeThruEquity charges companies for a suite of services that may include conference presentation fees, the preparation of and distribution of initiation and/or update research reports, the issuance of press releases announcing its research reports and social media posts. SeeThruEquity reserves the right to decline to issue a research report in its sole discretion. The company discussed in this report has issued eighty four thousand one hundred shares of restricted common stock of the company to an officer of SeeThruEquity for some or all of the above described services. SeeThruEquity may receive fees in the future for similar services. On occasion, a company may pay all or a portion of its fees through the issuance of restricted shares of stock. To the extent the shares are not subject to restrictive legends, SeeThruEquity may sell these shares once unrestricted at any time including upon release of reports or articles on the subject company. SeeThruEquity and/or its affiliates may have a long equity position with respect to a non-controlling interest in the publicly traded shares of companies featured in its reports, and may sell its shares at any time, in its sole discretion and without regard to any price target in its report. SeeThruEquity s professionals may provide verbal or written market commentary that reflects opinions that are contrary to the opinions expressed in this report. This report and any such commentary belong to SeeThruEquity and are not attributable to the company featured in its reports or other communications. The price and value of a company s shares referred to in this report may fluctuate. Past performance by one company is not indicative of future results by that company or of any other company covered by a report prepared by SeeThruEquity. This report is being disseminated primarily electronically and, in some cases, in printed form. An electronic report is made simultaneously available to all recipients. Please refer to our website for additional information regarding SeeThruEquity. Copyright SeeThruEquity, LLC. No part of this material may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of SeeThruEquity, LLC SeeThruEquity, LLC. Important disclosures appear at the back of this report. 16 P a g e