Earnings call transcript: Regen Three sees strong innovation in Q2 2025

Regen Three (RGNT), with a market capitalization of $1.15 billion, reported its Q2 2025 earnings, highlighting significant advancements in product innovation and strategic positioning. According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.36, suggesting strong fundamentals. The company is poised for a transformational period in the coming months, focusing on mergers and acquisitions and the development of new projects. Despite no specific revenue or profit figures disclosed, the company remains optimistic about its future growth prospects, with its next earnings report scheduled for December 3, 2025.

Key Takeaways

• Regen Three completed a private placement of $1.75 million, with 38% insider participation.
• The company developed superior re-refined Group Three lubricant molecules.
• Global intellectual property was expanded, covering 18 additional European countries and securing a Brazilian patent.
• Strategic focus on mergers and acquisitions and greenfield projects over the next 6-12 months.
• Active discussions with the US Department of Energy and potential financing partners.

Company Performance

Regen Three’s Q2 2025 performance underscores its commitment to innovation and strategic growth. The company has made significant strides in enhancing the quality of its re-refined lubricant molecules, setting itself apart from competitors by offering premium products at lower costs. The expansion of its intellectual property strengthens its competitive edge globally.

Financial Highlights

• Completed a private placement of $1.75 million.
• Insider participation accounted for 38% of the capital raise.

Outlook & Guidance

Regen Three anticipates a pivotal 6-12 month period, driven by two primary value creation pathways: pursuing mergers and acquisitions and building greenfield projects. With a beta of 1.58, investors should note the stock’s higher volatility compared to the market. The company is actively engaged in discussions with the US Department of Energy and exploring strategic partnerships to bolster its growth trajectory. InvestingPro subscribers can access detailed analysis of the company’s growth potential and comprehensive financial metrics.

Executive Commentary

• "Regen Three is at an inflection point," said Tony Weatherill, CEO, emphasizing the company’s strategic positioning and growth potential.
• Weatherill highlighted the company’s robust technology and global intellectual property, stating, "Our technology is proven, independently validated, and protected by global intellectual property."
• He also expressed optimism about the company’s future, noting, "We believe we are on the cusp of a significant milestone."

Risks and Challenges

• Market competition: The lubricants market is highly competitive, requiring continuous innovation to maintain a competitive edge.
• Economic conditions: Global economic fluctuations could impact demand for lubricant products.
• Regulatory changes: Changes in environmental regulations could affect production processes and costs.
• Strategic execution: Successfully executing mergers and acquisitions and greenfield projects poses operational challenges.
• Technological advancements: Keeping pace with technological changes is crucial for maintaining product quality and cost-effectiveness.

Full transcript - Gen III Oil Corp (GIII) Q2 2025:

Tony Weatherill, CEO or Senior Executive, Regen Three: Hello, everyone, and thank you for joining us today. Before we get started, I’d like to direct you to our forward looking statements. I’m Tony Weatherill. I’d like to give you a clear sense of where Regen three stands, where we’re headed, and why we believe the next six to twelve months could be truly transformational for our company. Let me be very direct.

Something significant is happening at Regen three. The momentum we are building is real. It is accelerating, and we are positioning ourselves to make a pivotal announcement that has the potential to fundamentally change the trajectory of our business. Let me share with you some of our commercial progress. Over the past several months, our team has been engaged in a number of deep and meaningful conversations across North America and globally.

These conversations span the full spectrum of commercial opportunities, long term offtake agreements with leading players, strategic partnerships that could enhance both scale and speed, mergers and acquisitions that could create new pathways to growth, ongoing discussions with the US Department of Energy’s loan programs office and other financing parties and both greenfield and brownfield opportunities that could accelerate our route to market. These discussions are not hypothetical. They are active. They are serious, and they are growing in both depth and frequency. This is, at its heart, a relationship driven business.

Deals of this magnitude don’t happen over email or conference calls alone. They happen when people sit down across the table, look each other in the eye, and see the value of working together. That’s why we’ve been on the road. Recently, at the ESF conference, we made valuable new connections that continue to progress. Beyond that, we’ve held numerous face to face meetings with industry leaders about m and a opportunities, strategic investments, and offtake partnerships.

And let me emphasize this. The outreach isn’t only coming from us. Increasingly, companies are contacting us. They want to be part of this opportunity because they see in Regen three something unique, a scalable platform that can deliver premium products at lower costs with a proven differentiated technology. So let me share a little bit of news on our technical validation.

On the technical side, we’ve had multiple independent third parties complete additional testing of our outputs, and those findings are unequivocal. Our molecules are true group three. And not just any group three, they are of higher quality than any other re refined group three that these independent technical teams have seen to date. This matters because group three is the premium product in the lubricants market. It commands higher pricing.

And with that process, we can deliver it at a cost that is demonstrated to be significantly lower than virgin producers. The result is extraordinary margin potential underpinned by independent validation of our product’s quality. Looking ahead, our pace of activity is only increasing. Our travel schedule is full with upcoming meetings across The United States, Europe, and The Middle East. We are in constant motion because opportunities are opening in every region.

And as I said earlier, it’s not just us pushing these conversations forward. Third parties are seeking us out. They see the potential, and they want to partner with a technology that is proven, efficient, and scalable. Now turning to engineering and intellectual property. We’ve shared our latest test results, and once again, the outcomes have exceeded expectations.

Our technology continues to demonstrate not just reliability, but superiority. On the IP front, we’ve taken an important step in strengthening our global competitive position. Through our European patent, we’ve expanded coverage to 18 additional countries. And in addition, our Brazilian patent application was granted, an important development given that Brazil effectively bans all burning of used motor oil and is a major leader in re refining globally. Together, these intellectual property investments significantly broaden our protection and enhances the value of our technology as a global asset.

On the capital market side, we continue to execute. We recently completed a private placement with insider participation of 38% on a $1,750,000 raise. This demonstrates confidence and alignment between management, insiders, and indeed shareholders. We also recently participated in the OTC conference, an important step in getting our story out to new investors, particularly in The United States where our project resonates strongly. And in the very near future, we will be launching our new corporate website.

This is not simply a cosmetic update. It’s about clarity, communication, and credibility. The new site will allow us to better articulate our vision, showcase the seriousness with which we are bringing our technology to market, and streamline our investor relations processes. We are also making the personnel moves necessary to set us up for success in this next phase. In the second quarter, Liam Gallagher joined our board of directors.

Liam brings a fresh perspective to our board, and his extensive experience in business development, capital markets, and the energy and sustainability industries have proven invaluable to the company. We are very grateful for his enthusiasm and continued support. And I’d now like to take a moment to welcome Brad Kotisch as our new c CFO, chief financial officer. We brought Brad on board at a pivotal time because we see the potential for game changing events ahead. We needed a CFO with deep experience navigating complex transactions, managing strategic financing, and developing the structures that will support our growth.

Brad brings exactly that skill set, and he shares our excitement about bringing this technology to market. Together, we see two clear pathways to value creation, pursuing the right m and a opportunities and building greenfield projects. Both are viable, both are under active consideration, and Brian’s expertise will help us execute with discipline and precision. Finally, let me close on a note that I believe is extremely important. We are committed to maintaining a regular cadence of communication with our shareholders.

Transparency, accountability, and openness are nonnegotiable values for us. As we move into this next phase with opportunities expanding rapidly, we will continue to keep you informed every step of the way. So in closing, let me bring this all together. Regen three is at an inflection point. Our commercial momentum is accelerating.

Our technology is proven, independently validated, and protected by global intellectual property. Our financial strategy is strong and aligned with shareholder interests, and our leadership team is ready to execute. We believe we are on the cusp of a significant milestone, one that could fundamentally change the trajectory of this company over the next six to twelve months. We are excited. We are energized.

And most importantly, we are confident in the path ahead. Thank you for your continued trust and support. We look forward to sharing more as this journey unfolds.

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