Trade Alert: AI
Another way to trade our picks & shovels play on AI.
New Cash, New Options, Same Thesis
In a post earlier this month (“Finding Alpha on X”) I mentioned why Tecogen’s (TGEN 0.00%↑) gas‑engine chillers could become a surprise beneficiary of the AI datacenter build‑out.
Since then two meaningful updates have landed:
1. Capital Raise @ $5.00
3.5 million shares (plus full 485 k over‑allotment) sold on 18 July at $5.00.
≈ $19.9 million gross proceeds closed 21 July.
Management earmarked use of funds for working capital, product development, and — explicitly — expansion into the data‑center market.
Bottom line: the raise extends runway well into 2026, easing “going‑concern” fears for potential customers who need multiyear service support.
2. Options Finally Listed
As of last Friday TGEN has a chain out to January 2026. Liquidity is thin but workable, which lets us monetize patience instead of chasing spot.
Quick Thesis Refresher
AI’s heat dilemma: GPU racks now swallow 50‑70 kW; electric chillers compete for the same power budget.
Gas‑engine chillers (Distributed Thermal Exchange): Off‑grid cooling plus optional cogeneration = lower operating cost and resilience during peak‑pricing events—think ERCOT (Electric Reliability Council of Texas) summer afternoons).
“First logo” domino: One 20‑unit datacenter order would roughly double annual revenue and validate the tech across the sector.
Credibility de‑risked: Vertiv partnership + NYSE uplist were big steps; this fresh equity raise tackles the remaining balance‑sheet worry.
With options trading, we have a new way to add exposure to this name, while using its volatility to our advantage.
Details below.
