Hydrogenics Corp (NASDAQ:HYGS) issued two press releases Friday:
First ,they have received a series of purchase orders from General Motors Corporation (NYSE:GM) for fuel cell test services anticipated to be delivered in 2006. HYGS gave GM common share purchase warrants as part of an agreement in 2001. The proceeds for the new testing contract were used to re-purchase these warrants back from GM. [ more ]
HYGS also announced that it has been awarded a US$8 million Fuel Cell contract for multiple units of its HyPM® 500 Series Fuel Cell Power Modules from a world leading military OEM. The power modules, representing in aggregate over 600 kW of power capacity, will be delivered over a two year period starting in 2006. The modules will be used for an undisclosed application. [ more ]
The GM news will not really affect the bottom line profits for the company, but I view this action as a inventive stock buyback plan. I'm always happy when a company is willing to purchase their own stock. The news regarding the $8 million is also very good for the company, albiet it is a little vague on details. If they are selling to an undisclosed foreign military that the world community is not happy with (i.e. North Korean, Iran, etc.), then this could cause some major grief in the future.
The markets also like this news -- the stock was up almost 8% Friday.
HYGS 1-yr chart: