Why did ACDC (CSE: ACDC) Grow 190% This Week?
Shares of ACDC(CSE: ACDC) were having a good day on this week, having gained 190% on the news that they would be entering a partnership agreement with Daymak International, a well-established Canadian maker of Light Electronic Vehicles (LEVs).
Under the terms of the 5-year agreement, EV Battery Tech will be the exclusive supplier of batteries and battery packs to Daymak, with automatic 1-year renewals in effect after the initial period. Daymak currently has sales of over $100 million across its line of LEVs, with an estimated 30% of production costs directly invested in its battery systems the partnership represents a strategic opportunity for both companies.
Daymak currently occupies an enviable position as Canada’s leading distributor of LEVs, with product lines available through big-box retailers like Costco, Walmart, and a vast network of over 150 specialized dealers, including locations in the U.S, Europe, and Japan.
For its part, EV Battery Tech brings to the deal game-changing battery technology. In leveraging the power of AI-driven algorithms to analyze the shortcomings in existing battery technology, EV Battery Tech was able to perfect its signature patented Battery Management System (BMS), allowing for more efficient power management, longer battery life, and continued AI monitored performance.
“I love the technology”, said Daymak’s CEO Aldo Baiocchi regarding EV Battery Tech’s technology. “From the Smart Wall to the specialized BMS with their battery packs, they are perfect for our current products and some of the projects we hope to announce soon.”
And he’s not the only one who is enthusiastic about the arrangement. Investors are optimistic that this partnership will bolster EV Battery Tech’s brand recognition and signal new opportunities to come for the battery technology maker. The agreement is effective immediately, and EV Battery Tech products will begin to roll out in Daymak’s product line by late Q2 of this year.
Who Is Daymak?
Since founded in 2002, Daymak has been pushing the limits of possibility with innovative LEVs that have redefined everything we thought we knew about electric vehicles and green transportation.
Today, Daymak is an industry-leader in LEVs, with a wide-ranging product line seemingly from another time in the distant future. In their own words, Daymak is “…empowering individuals to find the fastest, coolest, greenest modes of transportation.”
The company has been awarded numerous industry accolades in recognition of its achievement in eco-friendly transportation solutions, including recently being named one of Profits Magazine’s Top 100 Growing Canadian Companies, earning a CleanTech North Award, and being named as one of Ontario’s Greenest Companies.
With its newest product launch, Daymak breaks further into the rapidly growing micro-mobility market. In addition to its already widely popular e-bikes and e-scooters, Daymak will be introducing Avvenire, an ambitious lineup of 6 LEVs offering discerning buyers cutting-edge designs and superior performance.
The lineup will include an off-road capable e-bike able to manage 100km on a single charge, a fully enclosed 4-season recumbent e-bike, a 2-seater coupe with a range of 400km and impressive acceleration of 0 to 60 in 1.8 seconds, and finally, even an e-vehicle capable of flying.
The Avvenire lineup will begin deliveries of some of its products in 2021, and EV Battery Tech will be the battery technology powering propelling these ground-breaking LEVs forward.
Why Does This Matter?
For many small-cap and penny stocks, the key to early success lies not only in the ability for the company to tell its story effectively to the market, which many of ACDC’s current shareholders could say that it has done. The true measure of long-term success is the company’s ability to maintain its momentum by consistently delivering on its business strategy.
The partnership with Daymak provides the company with a pathway to get its innovative battery technology out in the market and, more importantly, a pathway for revenue in 2021. Coupled with the ACDC’s other announcements in January, including its municipal scale ESS infrastructure product, the Titan series, and its Ionix Pro Smartwall product for homes, the company is starting 2021 with a bang.