The Xtek Ltd (ASX: XTE) share price entered the stratosphere today following a positive announcement from the company.
The defence contractor's shares shot up to an astounding high of 49 cents this morning before settling 39% higher around 44.5 cents. At the time of writing, they have retreated slightly to 42 cents apiece, up 30%.
Let's take a look at what the company updated the ASX with.
Xtek locks in multi-million contract
Investors are driving up the Xtek share price after the company's subsidiary secured a significant purchase order.
According to the release, Xtek advised that its HighCom Armor Solutions Inc. (HighCom) business received a US$33.21 million contract.
The scope of the contract is for the urgent supply of "many tens of thousands of individual advanced ballistic protection items".
Given the nature of the business, Xtek could not reveal which international customer ordered the specialist ballistic armour.
However, with the Russian war continuing to rage on in Ukraine, it's possible the latter could be the beneficiary.
Fulfilling the order
Xtek noted its logistics team was trying to source and secure the raw materials needed to fulfill this large order.
The ultra-lightweight and high-performance body armour plates and ballistic helmets are manufactured in Columbus, Ohio.
The company expected to deliver roughly 40% of the contract by the end of year. The remainder will likely be sent sometime in the first quarter of 2023.
The latest order takes the group's total new order bookings to more than $69.5 million since the beginning of March. More specifically, the Ballistics Division's new orders represent $64.4 million of this.
Xtek group CEO Scott Basham commented:
…The first bulk shipment of items will be dispatched in coming days, and the business is fully committed to delivering the remaining batches of these life-saving products as quickly as possible over the coming weeks.
We continue to engage deeply with this, and other local and international customers, to assist them to resolve their urgent ballistic armour supply needs.
Xtek share price summary
Despite today's massive gains, the Xtek share price has lost around 16% from this time last year.
Its shares reached as low as 16.5 cents in February, before almost tripling in value in the space of three months.
Based on valuation grounds, Xtek presides a market capitalisation of roughly $42 million.