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MYCELX Technologies Corporation (LSE: MYX) released a positive trading update on Tuesday, resulting in its share price moving higher.

The clean water and air technology firm began 2021 strongly, with two project extensions signed with customers in Saudi Arabia. MYCELX said these projects will help optimise production, increase cost savings and energy efficiency.

Additionally, during Q1, the company plans to commence delivery of the equipment from its third sale to Nigeria.

Following product development initiatives in 2020, the company has secured a paid trial to improve interest in the REGEN product offering. The value of these initial projects and capital sales commence to $3.5 million in revenue for 2021.

MYCELX generated revenue of $7.1 million in 2020 after facing challenges from the Covid-19 pandemic. However, the company did say that a recent increase in activity in core markets and a global economic recovery will allow them to progress in new contracts.

As part of the cost reduction program, they have also announced the sale of its building in Duluth, Georgia, USA, providing a financial gain of $2.5 million and leaving the firm with $6 million of cash equivalents on the balance sheet.

Connie Mixen, MYCELX's CEO, said that despite the tough year, they are seeing an increase in activity which “can be seen with the two contract extensions we have signed in Q1 2021, alongside the exciting opportunities arising from the paid trial for REGEN and our development of novel product applications”.

“While we expect it to take time for the wider energy and industrial markets to normalize, we anticipate bidding activity by customers to increase, bolstered by the global economic recovery,” added Mixon.

Shares of MYCELX gained 10.55% after the open, climbing to 30.4p after the announcement.

Should you invest in MYCELX Technologies shares? MYCELX Technologies shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market 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 MYCELX shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

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