After hard stock losses Thursday
following news of testing discrepancies
with energy storage partner EEStor, ZENN Motor Company (TSX:V.ZNN
, Stock Forum
) quickly gathered analysts and investors at EEstor’s facility in Cedar Park, Texas, and ran them through an extensive look at the facilities.
The company alsp put out a news release Monday vowing to work openly with EEStor and third party consultants to ensure the glitch that caused a 30% stock drop isn’t repeated, news that mollified investors who quickly jumped back on to ZENN shares.
In late trading, ZENN stock had risen $0.34 (40.48%) on the back of ZENN's damage control.
According to the company
, “ZENN and EEStor also agreed today to engage a major qualified firm, in addition to the qualified firms they have been working with, to assist both companies in developing testing protocols and to conduct and report on comprehensive testing of the EESU layers. Testers will have full access to EEStor facilities as well as newly produced layers.”
Analysts from Industrial Alliance attended and were suitably impressed.
“On Friday, October 18, we attended an Analyst and Investor Day at EEStor’s facility in Cedar Park, Texas,” said the IA report
.” Over several hours, we went through each step in the processes, witnessed resistivity, capacitance and energy storage tests, and were shown quality control methods. During the presentation portion of the tour, we received an explanation of the mechanisms occurring in EEStor’s ultracapacitor layers and much time was devoted to ensuring that all our questions were answered. EEStor also shared steps being taken to further improve their processes and product performance, as well as their plan to move into higher volume production once the current testing phase is completed and potential customers are provided with similar briefings and samples for their own testing purposes.”
IA continued, “During the tour, we witnessed an energy storage test […] The results showed that the capacitance of the sample increased as the voltage level was increased. This was explained to us as a characteristic of the sample operating in the paraelectric phase, as opposed to the ferroelectric phase, with would have shown a constant capacitance that would drop off at breakdown voltage. Using the energy storage equation E=½CV², we already expected the energy stored to increase as the square of the voltage. With the additional increase in capacitance, the energy storage potential is further raised. Other tests also showed how newly produced samples have demonstrated extremely high resistivity, and we received an explanation as to how tuning on these samples is expected to further increase capacitance and therefore energy storage capacity.”
Industrial Alliance considers ZENN a speculative BUY with a target of $5.
ZENN shares currently sit at $1.18.
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