Cinpart eyes US push for voltage optimization product through local decison makers

It was a double whammy for shareholders in Cinpart (LON:CINP) this morning after the company released final results and announced a Memorandum of Understanding (MOU) with a large non-partisan organization in the United States, which could lead to a major push of its voltage optimization product into schools, prisons and other local authority buildings.

Shares in Cinpart rose as much as 30% after the company confirmed that it had inked an MOU with County Executives of America, an organization which represents local elected officials in 700 counties in the United States.

The MOU envisages County Executives helping Cinpart’s subsidiary Active Energy build awareness of its voltage optimization product to local elected officials (mayors, judges, county executives…), who in turn oversee many public facilities, including schools, prisons and hospitals.  Cleary the ability to promote Active Energy’s product to a vast network of decision makers in the United States could transform the company’s prospects dramatically.

Active Energy’s voltage optimisation technology reduces energy consumption (and therefore CO₂ emissions) of commercial buildings by up to 20% by regulating the voltage of energy entering a building to the optimal level.

“In order to support its expansion in the USA, the Company is also considering establishing a US based assembly facility,” Cinpart added.   If this becomes the case, Cinpart said it would tap the markets for additional capital to support the expansion.

"The MoU with County Executives of America represents significant progress in our ambition to establish Active Energy's technology in the USA. We have been working with the organisation to build awareness of our technology amongst both commercial and governmental bodies. With the support of County Executives, we now look forward to expanding on the initial interest generated in order to take advantage of the considerable opportunities available in the US,” Kevin Baker, Chief Executive of Cinpart, commented.

In a separate announcement, Cinpart also released full year results for the year ended 31 December 2009, which included six months of contributions from Active Energy.  Revenues in 2009 climbed 42% to £2.88 million, while losses widened to £1.175

http://www.proactiveinvestors.co.uk/companies/news/18119/cinpart-eyes-us-push-for-voltage-optimization-product-through-local-decison-makers-18119.html