FuelCell Energy Inc (NASDAQ: FCEL) is having a great start to the trading session Wednesday, and for good reason. The company announced via SEC filing that it has settled an arbitration case the day before financial results are expected to be released. As a result, the stock is up more than 26%. Here’s what’s happening.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
FCEL Stock Gains After Announcing Settlement
Early this morning, FuelCell Energy filed a form 8K with the SEC. According to the filing, a key case has been settled in arbitration.
The arbitration followed a relationship with POSCO Energy that has deteriorated at this poitn. In fact, in mid-January, POSCO Energy ceased all communications and served FCEL with an arbitration demand.
At the time, FCEL said that it was considering all options. Nonetheless, today, it became clear that a settlement has been agreed upon.
In the SEC filing, the company said:
On July 3, 2019, FuelCell Energy, Inc. (the “Company”) entered into a settlement agreement with POSCO Energy Co., Ltd. representing an amicable resolution to the pending arbitration in Korea that was first reported in the Company’s Form 10-K filed January 10, 2019, thus ending the arbitration .
Unfortunately, no further details were provided with regard to the settlement. Nonetheless, at this point, we know that arbitration is over and that the company will continue operations as usual.
The News Comes Ahead Of Financial Results
The timing of the SEC filing and arbitrated settlement is interesting. That’s because tomorrow, July 11, 2019, FCEL is expected to issue its financial results for the second quarter.
From an operational side, the report should be a positive one. After all, during the second quarter, FuelCell commissioned the world’s most advanced and flexible solid oxide fuell cell project.
The project is taking place in Pittsburgh, PA and it represents a big step forward. After all, the commissioning of the plant furthers the company’s goals with regard to commercialization of its solid oxide platform, further paving the way for growth of its clean energy source.
Also during the second quarter, FCEL announced that it has started a project at a United States Navy Submarine Base in Groton, CT. As we know with government contracts, these tend to have a domino effect and the company may see further business from other military bases in need of the same services.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
Never Miss The News Again!
Join our mailing list below to receive free actionable updates.