It was good to get confirmation that GER have secured an extension until 30th June 2015 to come up with the remaining $1.8 million USD they need to retain their maximum 33% ownership stake in NewCO2Fuels. I was fearing that was dead and buried and that GER would end up with next to nothing, but today's announcement still provides hope.
Of just as much interest to me was the major announcement coming from the Vivid Industrial business, but tucked away in the Quarterly Report as it was, it probably went through to the keeper without anyone noticing it. For those that missed it, it sounds like GER have landed a very big fish indeed, one whose market cap is 298x GER's tiny current market cap of just $14.81 million. From the description given by GER in yesterday's ASX release it can only be one company and if I am right in identifying the company in question, then it is definitely a company maker for the Vivid Industrial business.
From yesterday's Quarterly Report:
'One particular project during the quarter that demonstrated the continued attractiveness of Vivid Industrial's proprietary SmartFLECTOR technology was the implementation of this system at a site owned by a large Australian property developer, but leased to a premier national logistics company, which subsequently also enquired about a further 17 sites across the region - an example of the key vertical market for our core technologies, demonstrating the soundness of our product positioning strategy and the unique benefits of our technology.'
'During 2014, one of Australia's most prominent and successful freight and logistics companies established a formal engineered trial which ran over a period of months. This trial contained four shortlisted LED technology manufacturers from around the globe. Vivid Industrial's LED system was selected in this short-list. Final selection would enable the company to standardise on a lighting product platform for multiple site rollouts in Australia and the Asia-Pacific. We are pleased to report that Vivid Industrial's LED system outperformed all trial participants and has been selected.'
The sentence immediately following the above read 'This was a fantastic achievement for all involved and, in due course, we look forward to disclosing more about the customer and opportunity across Asia.'
I'll put my hand up and say it is TOL as who else could it be, and if it is indeed TOL then that is a really fantastic step up for GER and its Vivid Industrial business which if it was going from strength to strength previously it's going gangbusters now.
I also liked another of the sentences that appeared in yesterday's release 'We have also begun the process of evaluating export market opportunities in south-east Asia and the sub-continent with specific partner evaluations already underway.'
A current share price of 6.1 cents just on the Vivid Industrial business alone sees GER massively undervalued IMO.
GER Price at posting:
6.1¢ Sentiment: Hold Disclosure: Held
