Clarence McCollum has the deep, resonant voice you would expect to methodically read the news, but ask him about the latest development with his company, Exergetic Energy, and a fast-paced stream of recognition and opportunity blasts forth.
McCollum, president and CEO of Exergetic Energy (OTCQB: XNGR), has racked up serious airline miles traveling the country to secure the future of the energy solutions supplier. Exergetic Energy assists companies looking to decrease their energy costs and transfer some of their energy supply to alternative sources. In a broad mix of energy solutions, the company offers services to deliver fuel and optimize fuel use, additives to increase mechanical life as well as solar panel design, installation and maintenance.
The Detroit-based business received an invitation to attend the 2011 New York Inner City Capital Connections program, to be held Nov. 10. The free program instructs inner city businesses on the sources of capital and connects them with investors. Exergetic Energy was nominated for the program by the Detroit Economic Growth Corporation.
Since its inception in 2005, companies selected for the ICCC program have raised $372 million in capital. In that time, 191 inner city businesses from 85 cities and 26 states have received capital from 150 investors. Even those not initially selected receive valuable training on attracting investment. Ninety percent of selected participant companies attracted financing within two years of attending the program.
“We feel confident in our ability to garner funding,” McCollum said. “We have a lot of projects going on and with this access to additional investment capital, we have a great opportunity to do a lot of great things in 2012.”
Exergetic Energy will attend a one-day coaching session in Detroit before traveling to New York City for various events including a speed-dating-style session where investors meet with business representatives. The entire program is hosted by Fortune Magazine and sponsored by Bank of America. Exergetic Energy representatives will get a chance to meet with three to five investors during their stay in New York, on what organizers describe as “first dates.”
Farther south, Exergetic is opening a branch office in Houston in order to more easily cultivate partnerships and contracts with larger energy companies. Just as Exergetic Energy– with its fleet fuel management and oil additive technology – has a natural home in car-centric Detroit, it also sees a logical expansion to the heart of oil country.
“Even though Texas is the cornerstone of the oil and gas industry, there are a lot of opportunities there in the renewable energy area. After doing analysis on the small business there, we saw a death of competition,” McCollum said.
In other efforts to take advantage of all available opportunities, Exergetic Energy will apply this week for the 8(a) Business Development Program with the federal government. The program makes the company eligible for federal contracts that require 8(a) program participants. McCollum said the 300-plus-page application should be approved in approximately 90 days. In addition, the company will complete applications for similar small business preference systems for both the state of Texas and the city of Houston, home of its new office. These less complex applications should be returned in less than 30 days.
“Not many publicly traded programs firms go into the business development programs,” McCollum said. “It will give us access to a lot of opportunities.”
Meanwhile, the company is continuing development of the solar panel design, installation and maintenance portion of the business. While remaining firmly out the manufacturing of solar panels, where low-cost foreign competition makes it impossible to profit, Exergetic Energy is instead focusing on its area of expertise. The company surveys an area, assesses what types of panels are needed for the greatest energy production, and then collaborates with other companies to purchase competitively priced panels, install them, and maintain them here on American soil. Developments in this area of the business make 2012 look like a busy year for the company, McCollum said.
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