Next Fuel, Inc. (OTCQX:NXFI) has begun trading on the OTC Market’s Group’s highest tier – OTCQX. Previously it traded on the OTC Pink tier. This move coincides with other exciting developments for the company.
Next Fuel is a development stage company based in the U.S. state of Wyoming, with operations also in Colorado and Beijing. Its business is to acquire or develop advanced technologies to produce clean energy; treat energy-related waste water; reduce carbon dioxide emissions and/or convert the gas to less environmentally damaging matter; and produce biological fuel cells.
The company’s only product with near-term revenue potential is its Coal-to-Gas (CTG) technology which it is in the process of commercializing with international strategic partners. This technology can produce natural gas biologically from even low grade coal. So now owners of coal properties previously considered depleted or unsuitable for commercial use can use Next Fuel’s technology to produce clean natural gas from their low-grade coal.
Next Fuel’s technology can use existing infrastructure so capital costs are minimized. It also produces the natural gas “in situ” so there is no need to extract coal from the ground or dispose of hazardous byproducts. The technology has been field tested and is commercially ready.
The company also owns other intellectual property that it expects to contribute to its long term growth.
Until the beginning of 2011, the company concentrated on raising capital and acquiring intellectual property. Then it began to pilot test its CTG technology and generate some revenues, and now things are accelerating.
Successful test results lead to the following license agreements (just in the past two months):
1) In late March, Next Fuel granted a company the exclusive right to use its CTG technology in China and Mongolia.
2) In early April, Next Fuel granted a company the non-exclusive right to use its CTG technology in parts of Indonesia.
Then in late April the company raised over $1.5 million in new equity, further strengthening Next Fuel’s balance sheet. Speaking of Next Fuel’s balance sheet, as of March 31 the company had $2.7 million in assets (with only $1,500 intangible) and only $38,804 in liabilities.
And finally as noted above, Next Fuel upgraded its status from OTC Pink to OTCQX.