DPW Holdings (DPW) Stock Rockets on Development Agreement

DPW Holdings DPW Stock News

DPW Holdings Inc (NYSEAMERICAN: DPW) is making a run for the top in the premarket hours this morning, and for good reason. The company said that it has entered into an agreement with a medical device company. Here’s what’s going on:

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DPW Stock Climbs on Development Agreement

In the press release, DPW Holdings said that a subsidiary of its global defense and technology business, Gresham Worldwide, Enertec, has entered into a development agreement. The agreement surrounds the development of medical testing facilities for Align Technology, a global medical device company.

In the release, DPW reminded investors that Enertec is a leading provider of high-quality, high reliable bespoke technology solutions for mission-critical applications in defense, aerospace, and medicine. The company said that this includes advanced multi-purpose electronic systems with customized computer-based automated test equipment.

The company went on to say that in the first phase of the development project, Enertec will place a teem of experienced engineers on site with the customer to study both its products and its needs. In the second phase, the company will provide customized, advanced systems.

In a statement, Zvi Avni, CEO at Enertec, had the following to offer:

We look forward to the development of advanced testing systems for our new customer, Align Technology, Inc., leveraging Enertec’s position as a leading provider of complex testing solutions for the defense, aerospace and medical industries, both at home and abroad. Israel is considered to be among the world leaders in the field of medical devices, and we expect to see continued growth in the sector.

The above statement was followed up by Jonathan Read, CEO of the DPW subsidiary, Gresham Worldwide. Here’s what he had to say:

Expanding its portfolio of business in the medical field adds to momentum at Enertec. This recent contract demonstrates that demand for Gresham’s technology offerings remains strong. The expansion of Enertec’s testing systems, among other products, reflects the confidence and the trust that this global medical device company has to work with Gresham on what we expect will be a long-life cycle platform program. We remain optimistic that Gresham can achieve its goals for significant growth in 2020 and 2021.

This Is Big News

The news released by DPW Holdings this morning proved to be overwhelmingly positive. First and foremost, this development agreement will likely lead to significant revenues for the company. Moreover, with the medical device company choosing DPW for this work, others in the industry may do the same, opening the door for more significant revenues ahead.

Most importantly, this is a story of diversity. DPW recently saw strong growth after announcing that its Coolisys subsidiary was making big moves in electric vehicle charging. Now, we have a development agreement with another subsidiary. The key is that DPW broke its business segments into subsidiaries, with their own leadership teams. In doing so, the company seems to be executing greatly on its plans. As a result, DPW stock is one to watch closely ahead.

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