Cinpart (AIM: CINP) confirmed speculation that its 72.2% owned power optimisation system manufacturing business, Active Energy, is in advanced discussions with a blue chip energy supplier regarding a memorandum of understanding relating to the development of new markets for the VoltageMaster product, a voltage reduction and/or optimisation device.
The company said its announcement was in response the recent share price movement and bulletin board speculation. The share was up 15 percent by late afternoon trade today. Cinpart has risen considerably since the turn of the year and most notably advanced from 16.75p on Monday 18 January to trade at a high of 21p per sharethis afternoon.
Glasgow headquartered, privately held SDC Industries owns the remaining 27.8% stake in Active Energy.
Cinpart had announced on 22 December 2009 that it was in talks with an unnamed UK focused blue chip energy supplier over a possible strategic partnership to develop new markets for VoltageMaster.
The VoltageMaster is a transformer based power optimiser which attaches to an incoming electricity supply. The VoltageMaster reduces the incoming voltage into a building to 220 volts, lowering the amount of kWh consumed and in-turn reduces both energy costs and carbon emissions through improved efficiency.
Cinpart said it will make further announcements should the discussion be successful.
Disclosure: The author holds no positions in the company