Data released in December indicates that energy storage technology player EEStor’s composition modified barium titanate (CMBT) powder has the potential to be disruptive, and with a 71% interest in EEStor, ZENN Motor (TSXV:ZNN) is well positioned, says Paradigm Capital analyst J. Marvin Wolff.
On Wednesday, ZENN reported its fourth quarter and fiscal 2014 results. The company lost $2,601,207 in 2014, $735,986 of which came in the fourth quarter. Wolff says this Q4 $0.01 a share loss was in line with his expectation of a $0.02 per share loss.
The Paradigm analyst thinks that with a recent raise, ZENN has enough capital to last through Q2, 2015. Importantly, he says data released on EEStor in December will help the company going forward. He says the independent reports confirmed that EEStor can provide physically smaller solutions that have the same charge capacity at much higher voltages than is currently available.
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“This is the “breakthrough” moment for EEStor as it now can pursue commercial partnerships,” said Wolff. “ZENN remains the only public vehicle exposure to EEStor and its unique energy storage technology potential.”
Wolff notes that one of the four independent reports on the testing of the EEStor capacitor technology suggested that the market is substantial. The Paumanok Publications report, entitled “EEstor Capacitor Technology: Opportunities in the Global Capacitor Market: 2014” says EEStor has an addressable market of more than $2.8B in the field of high-voltage capacitors.
In a research update to clients Friday, Wolff maintained his “Buy” rating and target on ZENN Motor, implying a return of 344% at the time of publication.