Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of Kromek have risen Tuesday morning after the company announced that it has been awarded a 7-year supply agreement by a US-based industrial OEM with a “global customer base.”
The agreement is for Kromek's first-generation contaminant detection solution, which has a value of up to $17 million over the contract's life and is anticipated to begin in the current financial year.
Following the successful progression of a two-year development program, Kromek was awarded the contract. During the program, Kromek provided a CZT based detector solution for incorporation into the OEM's systems to identify contaminants during product quality inspection.
Dr Arnab Basu, CEO of Kromek, said: “Our customer is dedicated to introducing best-of-breed solutions in their next-generation products to ensure we can live healthier and safer lives. We anticipate developing further products for this customer to support their ambitions.”
Kromek's AIM-quoted shares rallied to a high of 16.5p following the news. However, it has since lost momentum and is trading at 15.3p, up 0.72% from Monday's close.
Kromek shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Kromek shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .