Valence (VLNC) Gets 6 Yr $19 – $24 Million Lithium Battery Supply Deal With Wrightbus

A couple days ago, I highlighted the emergence of Altair Nanotechnologies (ALTI) and mentioned Valence Technology (VLNC) may be next.  Carl Berg recently purchased 7 million shares, the technicals have improved and perhaps some news was coming.  There is news this morning that could get the stock going again and above the 200 day moving average. 

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The company has announced a multi-year supply agreement with Wrightbus, the United Kingdom’s leading independent supplier of hybrid buses.  The companies have been working together in some capacity since 2005 and Valence batteries are used in some of the buses, but this solidifies Valence as the battery supplier of choice for future products on into 2016.  The initial contract is estimated to be valued at $19 – $24 million over a 6 six year period, so this isn’t a major contract, but could propel the stock above a buck and keep it there.  We shall see.

“Valence’s selection as a key supplier to Wrightbus speaks to our product’s performance as well as market acceptance of our advanced energy solutions. Fleet manufacturers, such as Wrightbus, are choosing Valence Technology to help meet their evolving customer needs and requirements for lower emission vehicles,” said Robert L. Kanode, president and CEO, Valence Technology.

Shares of VLNC are up more than 10% in pre-market trading and right at the buck level.

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