Why 4DMedical, DigiCo, Eagers Automotive, and Meteoric Resources shares are storming higher

These shares are ending the week on a high. But why?

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Key points

  • A growing ASX tech stock surged 14% following a financial boost from options exercised, increasing its cash reserves significantly, which extends its operational runway.
  • An infrastructure REIT saw a 14% rise due to new substantial contracts in the Australian market, surpassing initial capacity targets driven by heightened demand for AI infrastructure.
  • A leading automotive company marked a 9% increase in share price upon announcing its expansion into the Canadian market, acquiring a majority stake in a significant partner, while a rare earths explorer climbed 20% after gaining operational consent for a high-grade project.

The S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a high. In afternoon trade, the benchmark index is up 0.35% to 8,978.2 points.

Four ASX shares that are rising more than most today are listed below. Here's why they are storming higher:

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is up 14% to $2.40. This morning, this ASX tech stock announced the further strengthening of its balance sheet after options were exercised. The move has pulled in $22.6 million in proceeds, which has boosted its pro forma cash balance to $45.5 million. Management notes that this will extend the funding runway for the company, ensuring it can execute its strategic and commercial priorities.

DigiCo Infrastructure REIT (ASX: DGT)

The DigiCo Infrastructure share price is up 14% to $3.11. This follows news that the data centre operator has secured new customer wins from a combination of Hyperscale, Neocloud, Enterprise and Government customers. It notes that these new contracts would increase Digico's Australian contracted IT capacity to 41MW by June 2026. This is more than 57% higher than its previous target of 26MW. The company's CEO, Chris Maher, said: "As we noted at our FY25 results, the Australian pipeline, customer demand and scale of deployments has continued to track ahead of expectations at the time of the IPO in December 2024. DigiCo is uniquely positioned to meet surging demand for high-density AI infrastructure – where performance, latency and connectivity are critical."

Eagers Automotive Ltd (ASX: APE)

The Eagers Automotive share price is up 9% to $31.94. This has been driven by news that the auto retailer is expanding into the Canadian market with the acquisition of a 65% stake in CanadaOne for C$1 billion (A$1.09 billion). Current owners, the Priestner Group, will retain a 35% stake. The company's CEO, Keith Thornton, said: "Our objective has been to pursue international growth in the best market with the best partner. To us, the best partner needed scale through a track record of profitable growth, deep industry experience, extensive industry talent, high quality brand partnerships and a clear, material growth runway ahead of them. We believe we have found all these qualities in CanadaOne."

Meteoric Resources NL (ASX: MEI)

The Meteoric Resources share price is up 20% to 16.75 cents. This morning, this rare earths explorer revealed that it has received consent to undertake operations at the Caldeira Ionic Clay Rare Earth Project within a designated buffer zone. Managing Director, Stuart Gale, said: "As one of the worlds highest-grade Ionic Absorption Clay Rare Earth deposits the Caldeira Project will play a critical role in development of alternative supply chains for rare earth elements. We are very pleased with the continued strong support across all levels of Brazilian Government and look forward to delivering our Project in the Municipality of Caldas."

Motley Fool contributor James Mickleboro 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 positions in and has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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