Better together: ClearVue (ASX:CPV) shares rocket 13% on partnership

ClearVue brings a United States solar company on board…

| More on:
A drawing of a white rocket streaking up, indicating a surging share pirce movement

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The ClearVue share price raced 13% higher today on a non-price sensitive announcement
  • A Master Services Agreement has been signed between ClearVue and California-based D2Solar
  • The company is still in discussions to extend the scope of works to assist with further development of ClearVue's technologies

The ClearVue Technologies Ltd (ASX: CPV) share price hit the gas for shareholders today following its latest update.

At the closing bell, shares in the green technology company were situated at 46.5 cents apiece, rising 13.4%. The sizeable gain put ClearVue shares on pace with a three-week high. Notably, shareholders are now sitting on a gain of 72% over the past month.

Moreover, today's market announcement propelled the number of shares being exchanged on the market. While the average trading volume for this small-cap company hangs around 1.16 million, more than 3.7 million shares swapped hands today.

Two minds are better than one

The excitement getting behind ClearVue on the ASX today stems from its partnership agreement with D2Solar. This builds on top of an already lengthy relationship between the companies.

According to the release, ClearVue has signed a Master Services Agreement (MSA) with California-based D2Solar. As part of the agreement, the two companies will put their heads together to continue development on second and third-generation technologies.

Clearvue explained the rationale behind budding up with solar development company D2Solar. Importantly, the deal is expected to bring stability to ASX-listed ClearVue's supply chain. A locally sourced supply chain has become an influential factor in purchasing decisions within the US market.

Furthermore, the MSA enables the ability for both companies to enter into an exclusive supply agreement in the future. This would see D2Solar be the exclusive manufacturer of certain ClearVue components once the company reaches this stage.

Additional scope of work is being discussed to include development input from D2Solar. The expanded scope would encompass development efforts on the second and third generation of ClearVue's single and double-glazed products.

Commenting on the news, ClearVue executive chair, Victor Rosenberg said:

ClearVue is very pleased to be working with D2Solar – they are a one-of-a-kind service in solar technology development and are a pleasure to work with. Very few contract development teams globally have the depth of skills and knowledge that the team at D2Solar can offer – we have been very pleased to be working with them over the last few years and are very much looking forward to deepening this relationship going forward including as a tech development partner, contract manufacturing partner and through the proposed co-location.

Interestingly, the move in the ClearVue share price occurred despite the announcement being marked non-price sensitive.

How has the ASX treated the ClearVue share price lately?

ClearVue has made its way into 2022 in style. In the space of 5 weeks, the ClearVue share price has rocketed 86% higher. The bulk of these gains played out in January without any announcements to fuel the momentum.

However, it is worth noting that the company is coming off a low base. Between April 2021 and December 2021, ASX-listed ClearVue shaved off 73% from its share price.

The company currently holds a market capitalisation of $98 million.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A woman is excited as she reads the latest rumour on her phone.
Share Gainers

Why Catalyst Metals, Ora Banda, Spartan Resources, and TechnologyOne shares are rising today

These shares are overcoming the market weakness and pushing higher. But why?

Read more »

Lab worker puts hands in the air and dances around
Healthcare Shares

Guess which ASX healthcare stock just rocketed 46% on major news!

Investors are sending this ASX healthcare stock flying higher on Wednesday. But why?

Read more »

A man sees some good news on his phone and gives a little cheer.
Share Gainers

Why Arafura, Dropsuite, Spartan Resources, and Universal Store shares are pushing higher

These shares are having a strong session on Tuesday. But why?

Read more »

Man on a laptop thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a Garfield-eque start to the trading week this Monday.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Healthcare Shares

If you invested $5,000 in this ASX pharmaceuticals stock a year ago, you'd have $34,711 now!

Just how lucky have investors been with this stock?

Read more »

A boy stands firm on a rocky cliff holding a rocket in each hand and looking up toward the sky, anticipating flying into space.
Share Gainers

Why these 2 ASX 200 shares are surging amid today's market meltdown

Investors are bidding up these two ASX 200 shares despite the wider market meltdown. But why?

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Share Gainers

Why 29Metals, Immutep, Insignia, and Perenti shares are pushing higher today

These shares are avoiding the market selloff. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Adore Beauty, Domino's, DroneShield, and Universal Store shares are rising today

Not all shares are falling today. Why are these rising?

Read more »