EXRO Continues to add to its partnership list
Are you new to the EXRO story? Read our introductory post here
EXRO has announced another agreement, this time with a European partner to develop and deliver an engineered-to-order system that incorporates the Coil Driver system.
(If you’re unfamiliar with the Coil Driver check out our previous post that explains the demand case for this system here)
Exro will be delivering sample products by the end of Q1/23 which could add another positive data point for the investment thesis. The initial agreement is for 8-10K coil drivers annually but there is no clarity on which voltage they will be. Due to the price difference between the 100V ($2250) and the 800V ($25,000) it's hard to know just how much this agreement is worth as you can see by the chart below.
While the scope of this contract isn’t clear what is clear is that the team over at EXRO continues the positive momentum of de-risking the product as well as the demand picture. This latest news follows the announcement on September 27th that highlights the exceptional rating for energy storage safety (press release here) as well as the Linamar announcement earlier this month (4Front article here).
It’s no surprise that the stocks recent performance has it trading close to the last raise, priced at $1.05 and consisting of one share and one full warrant. As you can see in the chart below we’ve had some nice price action over the last few weeks despite an overall market moving lower. What’s also reassuring is that the move from $0.74 to $0.98 was on increased volume.
Momentum has also seen a shift upwards, shown by both the MACD, where the MACD has broken above the signal line and in the RSI, which shows us moving out of oversold territory in mid September while still having some upside before things start looking overbot.
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The agreement isn’t for any amount of drivers. It is a pilot project which potentially could lead to sales. But, EXRO hasn’t established a record of turning pilots into contracts.