Railpower rises on locomotive approval
Friday, December 29, 2006
MONTREAL — Stock in Railpower Technologies Corp. rocketed up 32 per cent more Friday after the U.S. Environmental Protection Agency certified its three-engine road switcher locomotive.
The shares were up 46 cents at $1.83 on the Toronto Stock Exchange — up from 58 cents before the announcement on Wednesday, but down from over $6 a year ago.
The regulatory clearance was a condition for payment in a contract signed with a major customer in November. Had the company not received approval, the customer was entitled to end the contract and receive a full refund on locomotives already delivered.
The model RP20-BD is a multi-purpose locomotive for yard and road switching that runs on either batteries or engines.
Fuel savings can be as high as 35 per cent and reduction in nitrogen oxide and particulate emissions range up to 80 per cent, according to Railpower, which announced the EPA approval Wednesday.
Montreal-based Railpower announced earlier this month that it reached an agreement with a customer regarding the cancellation of an order for 35 of its hybrid Green Goat locomotives.
Under that agreement, the customer agreed to return the three Green Goat locomotives that had been delivered and Railpower would make them available for sale.
