GUELPH, Ont. – Armtec Infrastructure Inc.’s battered shares recovered some lost ground Thursday, rising more than 80 per cent after the supplier of precast concrete products announced it has won a BC Hydro contract worth about $40 million.
The contract to be BC Hydro’s exclusive supplier of concrete utility vaults and associated products for nine years is good news for the company, which has experienced losses, a class-action suit and financing challenges this year.
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Armtec’s stock (TSX:ARF) was up $1.05 or 86 per cent after the announcement Thursday, rising to $2.26 in late afternoon trading. The stock is still down from $10.50 on June 8, just before Armtec suspended its dividend.
The company said at the time its business had been hurt by an unusually late and wet spring across the country.
It was later hit with a shareholders lawsuit, which claims Armtec knew its financial results would be weak when it raised more than $50 million from investors. Armtec has said it will fight the suit.
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Armtec subsequently reached a $125-million financing agreement in August with Brookfield Asset Management (TSX:BAM.A). Armtec expected to have $28 million left for general purposes after using the funds to repay a bank loan.
The company, which has its headquarters in Guelph, Ont., said Thursday its agreement with Brookfield helped to demonstrate that Armtec had the financial ability to meet BC Hydro’s needs over the long term.
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