Smart building materials company ClearVue Technologies (ASX:CPV) has surged higher in today’s trading after locking in a distributor of its high-tech products in the highly lucrative Middle East market.
The stock hit an intraday high of 34.5c, up 6c or 21%, with over 600,000 shares changing hands at noon on Friday.
ClearVue has inked an MoU with Grafsol General Trading LLC for exclusive distribution rights of the company’s products in the United Arab Emirates, Kuwait, Bahrain and Qatar and non-exclusive distribution rights in Saudi Arabia.
ClearVue Executive Chairman Victor Rosenberg said the MOU represented a great opportunity for ClearVue to break into the Middle Eastern region.
“The initial licence will give ClearVue feet on the ground for sale and distribution into this very large market,” he said.
“Whilst we will initially sell product for distribution through Grafsol, the hope from both sides is that the relationship will quickly be extended to include manufacturing rights for this territory as well.
“The aim now for Grafsol will be to secure cornerstone demonstration projects where ClearVue’s technology can best be deployed and displayed.
“Grafsol’s longer term vision is to use ClearVue glass to become a virtual power supplier in the region – demonstrating yet another way to exploit the ClearVue technology.
We look forward to working with Grafsol and to assisting them where we can to make their vision become a reality,” he added.
Grafsol General Trading LLC is an independent trading company in the business of importation and sale of green building products in the UAE and has extensive contacts into the building industry and government agencies in the greater middle east region.
ClearVue hopes to sign a Distribution Licence as soon as possible pending due diligence of Grafsol.
The term of the License will be 5 years (with 2 further 5-year extensions subject to agreement compliance and meeting all ongoing performance criteria);
Subject to performance, the license may be extended to include the right to manufacture which will require Grafsol to purchase from ClearVue certain technology components including ClearVue’s PVB interlayer.