EFOI stock is getting special attention this morning after Energy Focus Inc (NASDAQ:EFOI) announced that it has been awarded a new contract worth $3 million to supply LED solutions.
Ohio-based company Energy Focus is among the leaders of the market today in early trading after EFOI stock soared by as much as 65% on the back of a major announcement.
Today, Energy Focus announced that it has signed a major contract with one of the better-known healthcare organizations. According to the press release published by the company, the contract is worth $3 million. As per the terms of the contract, the company is going to supply a healthcare organization in Ohio with LED lighting solutions.
This is not actually a new contract, but rather an extension of an existing one. It proves that the healthcare organization in question is pleased with Energy Focus’s services and is happy to extend the contract.
Although the tenure of the contract has not been revealed, Energy Focus has revealed that the first order worth $500,000 has already been placed. More importantly, Energy Focus has been a contractor for the healthcare organization since as far as back as 2015, during which time it provided 37,000 LED downlights as well as 440,000 tubular LEDs.
At the time of writing, EFOI stock is up 65% at $0.66 after hitting a session high of $0.93.
The Chief Executive Officer and Chairman of Energy Focus, James Tu, stated, “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.”
Hence, it can be safely speculated that after having tested the services provided by Energy Focus, the healthcare organization decided to go in for its services on larger contracts. It also means that there is a genuine possibility of the partnership turning into a long and fruitful one for both parties. It remains to be seen whether this landmark contract leads to other contracts of similar size for Energy Focus or not.
Despite today’s rally, EFOI stock is still down about 45% from its recent peak price of $1.23.
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