During the recent trading session, the shares of Westport Fuel Systems Inc. (NASDAQ: WPRT) experienced a bullish upswing, marking a notable increase of 20.04% to settle at $6.65. This surge in Westport’s stock value ensued subsequent to a significant announcement made by the company.
Westport (WPRT) disclosed the formalization of an investment agreement aimed at establishing a joint venture in collaboration with Volvo Group, geared towards expediting the commercialization and global integration of Westport’s HPDI fuel system technology, particularly targeting long-haul and off-road applications (referred to as the “JV”).
The finalization of this venture remains contingent upon fulfilling specific closing prerequisites, inclusive of regulatory and governmental endorsements. The operationalization of the JV is expected post the formal conclusion, anticipated to take place in the second quarter of 2024.
This strategic accord underscores Westport’s commitment to fortify its existing partnership with Volvo Group and advance the deployment of HPDI technology. WPRT continues its trajectory of innovation and strategic investment in robust partnerships with esteemed entities that share mutual objectives, with Volvo Group being a prime example.
Driven by a unified aspiration for a greener future, Westport endeavors to foster further collaboration, delivering tangible solutions to decarbonize the long-haul and off-road transportation sectors. Westport will contribute local business endeavors, intellectual property, and fixed assets to the JV, as previously communicated.
Volvo Group will secure a 45% stake in the JV for approximately US$28 million, payable upon closure, in addition to a potential US$45 million contingent upon the JV’s subsequent performance. Furthermore, in a separate announcement, Westport has rescheduled the unveiling of its audited financial outcomes for the fourth quarter and fiscal year ending December 31, 2023.
The release is now slated for Monday, March 25, 2024, post the market closure. Previously, WPRT had scheduled the financial disclosure for March 18, 2024. A conference call and webcast to deliberate upon the financial results and other corporate developments will be convened on Tuesday, March 26, 2024. The rescheduling aligns with the Company’s recent JV declaration, illustrating prudent consideration.
