Superconductor Technologies, Inc. (NASDAQ: SCON) is flying in the market early on this morning, trading on gains of more than 35%. The gains come after the company announced that it would be exploring strategic alternatives. Here’s what’s going on:
SCON Stock Pops On Strategic Alternatives Review
In a press release issued early this morning, Superconductor Technologies announced that it will be moving forward with a review of strategic alternatives. Like all strategic alternative reviews, the goal of the exploration is to maximize shareholder value.
In the release, SCON said that the alternatives being reviewed include strategic investment financing, a business combination, or the sale of the company. As is always the case when these announcements are made, no assurance can be made that the strategic alternatives review will lead to any transaction or strategic change.
In a statement, Jeff Quiram, president and CEO at SCON, had the following to offer:
We have made significant strides in the development of our best in class Conductus 2G HTS wire for superconducting magnet applications. The customer interest in high performance magnet wire has never been higher, driven in part by the next generation fusion devices being developed by multiple well-funded companies. As we continue to focus our efforts on ramping production capacity to enhance shareholder value organically, the Board has initiated a review to investigate potential strategic alternatives to best position the company for the future.
Why This News Is So Exciting
There are multiple reasons that the news released today is so exciting. Here’s how I see it:
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