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Sabien Technology Group Plc (LON: SNT) share price rallied 17.3% after announcing that it was in early-stage talks with Proton Technologies Canada Inc. (Proton) to see if the two firms could cooperate and share their respective technologies.
Sabien is particularly interested in Proton’s hydrogen production technology, which could be paired with its waste-to-fuel technology to create massive synergies.
The company intends to tap into the exclusive sales agreement with City Oil Field Incorporated of South Korea (COF), which allows it to be the sole UK distributor of COF’s proprietary technology.
COF’s technology is used to produce light and ultra-pure fuel products from the processing of end-of-life plastics using low temperatures.
However, Sabien warned investors that the discussions were early and nothing has been agreed to so far. Still, the company saw it fit to invest £100,000 in buying voting shares in Proton as a show of confidence in the latter’s technology.
The company’s board said it viewed the opportunity to partner with Proton as a crucial getaway to participating in the emerging hydrogen power industry.
Still, I couldn’t help but wonder if Sabien rushed to commit to the partnership, which might still not work out given that talks between the two companies are in the early stages.
Moreover, the company might be feeling a bit of pressure to show results after bagging the potentially lucrative contract with COF in September; hence, the rushed move to try and secure a deal with Proton.
Investors will be waiting keenly for further updates regarding the negotiations promised by Sabien’s board of directors.
*This is not investment advice.
Sabien Technology share price.
Sabien Technology shares rallied 17.3% to trade at 26.10p, rising from Wednesday’s closing price of 22.25p.
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