Energy Focus (EFOI) Stock Soars On $3 Million Contract

Energy Focus EFOI Stock News

Energy Focus Inc (NASDAQ: EFOI) is running for the top in the market this morning, trading on gains of more than 72% early on. The gains come after the company announced that it has entered into a new $3 million contract with a leading healthcare organization. Here’s the scoop:

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EFOI Runs For The Top On New Contract

Energy Focus issued a press release about a half hour ago, announcing that it had entered into a new $3 million contract. Under the terms of the contract, the company will supply LED lighting solutions to a leading healthcare organization in Ohio.

In the release, EFOI said that the contract award is an expansion of previous agreements with the client. Moreover, the comapny said that it has already received its first orders from the client under the contract, ammounting to about $500,000 of the $3 million total.

In the release, the company said that it has been working with the healthcare organization since 2015. In the initial phase of the progect, the company supplied about 440,000 tubular LED lamps and 37,000 dimmable LED downlights.

Importantly, EFOI said that the client went through an evaluation of 20 different lighting brands before deciding to work with the company. Under this latest contract, the project will expand to facilities in Akron, Ohio and Florida.

In a statement, James Tu, Chairman and CEO at EFOI, had the following to offer:

We are honored that this long-term client, which has been leading the global healthcare industry not only in medical science and patient care but also in healthy building and environmental sustainability initiatives, continues to choose Energy Focus as its LED lighting partner. Through our high quality, flicker-free LED products, the client has experienced significant, well documented energy and carbon footprint reduction, maintenance savings as well as improved environment for its staff and patients. We very much look forward to continuing to support the client’s visionary and ambitious sustainability goals with our innovative LED lighting solutions.

An Opportunity In The Making

The news today outlines a potential opportunity in the making. Energy Focus is a company with a market cap of just over $8 million, and that’s after the tremendous run in value that we’ve seen today.

Considering this, the $3 million deal is a very big deal that represented a large chunk of the company’s market cap before the market reacted. However, the implications of this deal go far beyond what we’re seeing today.

First and foremost, every time a new order is placed under the terms of this agreement, chances are that the order will act as a positive catalyst, sending the stoc furhter up. Moreover, this is the largest deal of its kind. As such, the company is quickly emerging as a leader in its space.

Moreover, the healthcare organization vetted 20 different providers before chosing EFOI. As a result, it’s clear that the company has a competitive advantage. If it didn’t, it would not have been chosen by the client.

All in all, this news has the potential to change the shape of EFOI moving forward.

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