Air compressor company Sprintex (ASX:SIX) has announced its expansion into Türkiye on the back of a three year contract worth A$5.8M.
All in all, Sprintex has inked a distributor agreement with an entity called Net 0 Enerji, a company focused on advising other businesses on how to reduce energy use – Sprintex’s ‘G-Series’ air blowers fit this bill, advertised as being 50% less intensive than competitor products.
Net 0 Enerji must provide an initial order for a three year term at $5.8M if it wants to have the exclusive right to market Sprintex’s products in Turkey, though, there’s no immediate guarantee this will be the case.
“Net 0 Enerji will work with customers to set up G-Series Jet Blower systems that measure electrical performance and airflow, install units, and evaluate the results to showcase energy savings and performance,” Sprintex wrote on Monday.
Net 0 Enerji and Sprintex first met in Dubai in 2023 at a conference called ‘WETEX’ – organised by Dubai’s local government utility company.
Whether or not the deal is enough to prompt interest in the stock remains to be seen. To be fair, air compression is not an industry known for sex appeal, even if they make cars go fast.
With that said – by virtue of being an illiquid microcap with shares worth 5cps – the company is actually up 285% YTD on a market cap around $26M.
But if the deal was well received by the company’s fairly quiet shareholder base, it wasn’t obvious on Monday. Shares dropped -2% in the first hour of trade.
SIX last traded at 5cps.