Eden Innovations’ [ASX:EDE] share price has risen 25.64% today, following a new contract
What caused the price rise?
Eden manufactures a special type of concrete that repairs roads, called EdenCrete. The company has been trying to penetrate the US market with this product for a while now. In January, it secured approval from the Georgia Department of Transport (GDOT).
Today, the lengthy process has paid dividends, as the company secured a 12-month contract from the state. Starting on 1 July, Eden will be involved in up to 16 separate projects across the state. Five or six of these projects are expected to involve major repairs; a big win for the Aussie company.
Shares climbed higher on the back of the announcement, flagged a big win for investors as well.
What next for Eden?
Today’s agreement could be the start of a much larger deal. GDOT is currently conducting a field trial of EdenCrete on a major highway. Eden expects that the section will be monitored for the next 12 months and, if successful, could secure more business.
Eden believes a positive result could lead to contracts for new road and resurfacing projects in the state.
It’s another step in the right direction for the company. EdenCrete has also been approved by six other US state transport departments. A strong start to the new financial year could signal a long line of future projects for Eden.
Junior Analyst, Money Morning
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