Company Overview
Name: Kraken Robotics Inc.
Ticker: TSX-V: PNG | OTCQB: KRKNF
Headquarters: Newfoundland & Labrador, Canada
Sector: Maritime Robotics, Defense, and Subsea Infrastructure
Specialties: Synthetic Aperture Sonar (SAS), subsea batteries, underwater drones (KATFISH), LiDAR, seabed mapping systems
Desjardins Recent Financing (June 2025)
In June 2025, Kraken completed a major bought-deal financing of CAD 100 million, underwritten by Desjardins Capital Markets. The deal involved issuing 37.6 million shares at CAD 2.66/share, with an over-allotment option for an additional 15% (~5.6M shares).
Total Proceeds: Up to CAD 115M gross (with over-allotment)
Use of Proceeds:
Expansion of subsea battery manufacturing in Nova Scotia
Acceleration of SAS and KATFISH production
Expansion into global naval and energy markets
Integration of recent acquisition (3D at Depth)
Major Contracts and Revenue Streams
1. Defense/Naval Sector (NATO & Allies)
Kraken is well-positioned to benefit from increased global defense spending, especially among NATO allies. Recent developments include:
NATO Navies (Europe & North America):
Multi-year, multi-nation contracts in pipeline
Successful demos of KATFISH and AquaPix SAS with navies in Canada, U.K., and Norway
Legacy contract with an Asia-Pacific navy for $9.5M CAD
Canadian Department of National Defence:
Standing Offer Agreements in place
Active participant in Canadian defense modernization
2. Subsea Energy Sector (North America, Europe, Asia)
Battery Contracts:
Orders exceeding $11M CAD for SeaPower subsea batteries for UUVs and AUVs
Strong backlog through 2026; production scaling in Canada
Acoustic Corer Projects:
$8M CAD contract for seabed imaging in offshore wind farms
Targeting North Sea, U.S. East Coast, and East Asia wind development
3. Commercial Survey and Offshore Wind
Sub-bottom Imaging Contracts:
$3M CAD in contracts signed in Q2 for seabed survey and UXO detection
LiDAR and 3D imaging added via acquisition of 3D at Depth (US$17M deal closed in April 2025)
Global Expansion & Opportunities
North America
Canada: Anchor client for defense, with ongoing naval trials and procurement
United States: Entry point through 3D at Depth acquisition; U.S. Navy and offshore wind developers are key prospects
Europe
U.K. Royal Navy: Target client for KATFISH SAS and subsea batteries
Germany/Norway/Netherlands: Interest from NATO-aligned agencies and surveyors
Asia-Pacific
South Korea & Japan: Offshore energy and maritime security are priority targets
Australia: Collaborations under consideration for AUV integration with Kraken’s battery tech
Strategic Acquisitions
3D at Depth (Closed April 2025)
Adds underwater LiDAR and 3D imaging capabilities
Expands Kraken’s offering into real-time digital twins and high-res asset inspection
Strengthens U.S. presence
Financial Outlook (2025–2026)
2025E Revenue: CAD 65–70 million
EBITDA Margin: 18–20% projected
Cash Position Post-Financing: CAD 190M+ (incl. Q1 cash + new capital)
Dilution: ~20% increase in outstanding shares (now ~225–230M)
Valuation Commentary
Intrinsic Value Estimate: ~CAD 1.60/share based on conservative DCF
Catalyst-Based Upside: Potential to exceed CAD 3.00–3.50 if NATO/naval contracts close and battery backlog accelerates
Stock Price (Post-Deal): CAD 2.66 (anchor price)
Investment Thesis
Kraken Robotics presents a compelling small-cap defense and robotics play, with:
Direct exposure to rising defense spending and subsea security needs
Proprietary technology (SAS, subsea batteries, LiDAR)
Strong capital position post-financing
Contracts in place and strong pipeline across NATO, energy, and commercial sectors
Risks: Execution of integration, government contract delays, market dilution
Upside: Accelerated backlog conversion, new contracts (NATO/U.S. Navy), energy transition tailwinds
Verdict: Kraken Robotics is well-capitalized, technologically differentiated, and globally relevant—poised to scale into a key supplier in subsea defense, robotics, and energy infrastructure.
ED Note:
Full disclosure: We are long PNG stock!
Our previous article from January 2025
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