The ClearVue Technologies Ltd (ASX: CPV) share price hit the gas for shareholders today following its latest update.
At the closing bell, shares in the green technology company were situated at 46.5 cents apiece, rising 13.4%. The sizeable gain put ClearVue shares on pace with a three-week high. Notably, shareholders are now sitting on a gain of 72% over the past month.
Moreover, today’s market announcement propelled the number of shares being exchanged on the market. While the average trading volume for this small-cap company hangs around 1.16 million, more than 3.7 million shares swapped hands today.
Two minds are better than one
The excitement getting behind ClearVue on the ASX today stems from its partnership agreement with D2Solar. This builds on top of an already lengthy relationship between the companies.
According to the release, ClearVue has signed a Master Services Agreement (MSA) with California-based D2Solar. As part of the agreement, the two companies will put their heads together to continue development on second and third-generation technologies.
Clearvue explained the rationale behind budding up with solar development company D2Solar. Importantly, the deal is expected to bring stability to ASX-listed ClearVue’s supply chain. A locally sourced supply chain has become an influential factor in purchasing decisions within the US market.
Furthermore, the MSA enables the ability for both companies to enter into an exclusive supply agreement in the future. This would see D2Solar be the exclusive manufacturer of certain ClearVue components once the company reaches this stage.
Additional scope of work is being discussed to include development input from D2Solar. The expanded scope would encompass development efforts on the second and third generation of ClearVue’s single and double-glazed products.
Commenting on the news, ClearVue executive chair, Victor Rosenberg said:
ClearVue is very pleased to be working with D2Solar – they are a one-of-a-kind service in solar technology development and are a pleasure to work with. Very few contract development teams globally have the depth of skills and knowledge that the team at D2Solar can offer – we have been very pleased to be working with them over the last few years and are very much looking forward to deepening this relationship going forward including as a tech development partner, contract manufacturing partner and through the proposed co-location.
Interestingly, the move in the ClearVue share price occurred despite the announcement being marked non-price sensitive.
How has the ASX treated the ClearVue share price lately?
ClearVue has made its way into 2022 in style. In the space of 5 weeks, the ClearVue share price has rocketed 86% higher. The bulk of these gains played out in January without any announcements to fuel the momentum.
However, it is worth noting that the company is coming off a low base. Between April 2021 and December 2021, ASX-listed ClearVue shaved off 73% from its share price.
The company currently holds a market capitalisation of $98 million.
The post Better together: ClearVue (ASX:CPV) shares rocket 13% on partnership appeared first on The Motley Fool Australia.
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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