We wrote about Solarwindow Technologies Inc (OTCMKTS:WNDW) back on September 4, in a piece that we titled “Solarwindow Technologies Inc (OTCMKTS:WNDW) Set To Have A Big September”.
Seeing how WNDW moved in September, we were right in our prediction. Soon after our post, WNDW went on to hit several new highs. For example, the stock’s 52-week high of $5.49 was set on September 7. Take a look at the chart below for the price action.
For a quick recap, WNDW has returned more than 42% to investors over the last three months and has returned more than 64% since the beginning of the year. We’ve seen sessions of profit-taking that have contributed to pullbacks in the stock. In our opinion, pullbacks may just present opportunity for investors to get WNDW on a discount because we see exciting upside potential in the stock in light of the updates we’ve recently heard from the company.
In this piece, we put recent significant developments in WNDW into perspective. But before we get into that, let’s briefly review the company’s business model for the sake of our readers who may not be familiar with this stock.
WNDW has a simple and straightforward business model. The company is focused on developing and commercializing transparent electricity-generating liquid coatings. When the coatings are applied to plastic or glass surfaces such as windows, they convert passive windows into electricity generators under various light conditions.
WNDW’s lead product is SolarWindow, which independent assessment has shown is capable of generating up to 50-times the power of conventional rooftop solar panels. Furthermore, when modeled in a 50-story building, SolarWindow achieves payback in just one year. WNDW’s liquid coating technology has been shown to the members of US Congress and featured in numerous industry publications.
Production agreement with Triview Glass Industries
Back in August of this year, WNDW promised that it would release a production details update of its first-ever electricity-generating windows. The update was to come in September.
As was expected, WNDW on September 7 released key production and product update and market participants were impressed by what was communicated as the stock rose to its current 52-week peak on that day. The update provided further details about WNDW’s production agreement with Triview Glass Industries LLC, which was announced earlier. Triview is an award-winning custom fabricator that operates from suburban Los Angeles.
WNDW selected Triview to be its regional glass fabricator, which means that Triview will support fabrication of SolarWindow electricity-generating glass. Important to note is that Triview will be WNDW’s first-ever production site, which is another way of saying that the deal with Triview puts WNDW firmly on track to start commercialize its innovations.
Besides manufacturing and marketing, the agreement also provides for WNDW and Triview to develop patents, intellectual property and new inventions, which WNDW will own.
At this point we’d like to look at the revenue potential that lies ahead for WNDW.
First, WNDW and Triview are eyeing commercial buildings with their electricity-generating windows. It’s estimated that commercial buildings consume 40% of all the electricity generated in the US, and that is equivalent to about $140 billion in power bills every year. The opportunity here is that WNDW can help commercial building developers to significantly lower their electricity expenses using its SolarWindow coating technology that turns windows into electricity generators. SolarWindow can help cut electricity demand by commercial buildings by up to 50% when modeled in tall towers. Furthermore, SolarWindow is capable of paying back its investment in just one year.
Commenting on the production agreement with Triview, John Conklin, the CEO of WNDW, stated the following:
“Our first goal was to invent transparent liquid electricity-generating coatings for commercial use. Now, our goals are to turn those inventions into fabricated commercial products and bring those products to market in order to turn entire buildings into vertical power generators.”
WNDW secures financing
In another positive update, WNDW announced on October 2 that it secured financing that it would put to use toward commercializing its technology. The company said that it was able to complete a private placement of securities that enabled it to raise about $2.6 million. It said that four investors, three of whom it noted have been long-term shareholders, participated in the financing.
WNDW intends to use the financing to advance the manufacturing and marketing of its SolarWindow product. The company issued securities that convert into common stock and warrants to purchase common stock in the private placement financing.
In our view, the positive updates streaming out of WNDW will continue to draw more investor into the stock and the stock will climb.
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Disclosure: We have no position in WNDW and have not been compensated for this article.