- Cematrix (TSXV:CVX), a high-growth penny stock, has added to its considerable backlog with a new $7.1 million contract
- The contract involves the construction of an annular fill tunnel in a Gulf State city, with work commencing in 2024
- The company’s total backlog net of sales to the end of September is $93.7 million
- Cematrix manufactures proprietary cellular concrete products for the North American market
- Cematrix stock (TSXV:CVX) has added approximately 35 per cent over the past year
Cematrix (TSXV:CVX), a high-growth penny stock, has added to its considerable backlog with a new $7.1 million contract.
The contract involves the construction of an annular fill tunnel in a Gulf State city, with work commencing in 2024. The project is part of a major water system expansion for the city in question.
The company has now announced $51.9 million worth of contracts since the end of FY2022 and $88.5 million since Aug. 3, 2022, more than three times its market capitalization of $24 million as of Wednesday.
The contract backlog scheduled for 2023 sits at $40 million, with a total backlog net of sales to the end of September 2023 of $93.7 million, and a sales pipeline exceeding $450 million as of August 2023.
“This substantial project continues the momentum Cematrix has been building since the fall of last year and projects of this size and nature add further credibility that our proven cellular concrete products provide a real solution that is reliable and affordable,” Jeff Kendrick, Cematrix’s president and CEO, said in a statement. “Our products are also generally more environmentally friendly than a number of the traditional products that cellular concrete replaces.”
“Contract wins with price tags of more than $1 million are up 186 per cent compared to similar sized contracts that were awarded to Cematrix in 2022. Having gone from seven such projects last year to 20 this year demonstrates the confidence the industry is gaining in cellular concrete,” he added.
The news follows $6.5 million in contract wins earlier this month for new infrastructure projects across North America and a $10.7 million contract win in August 2023.
Cematrix manufactures proprietary cellular concrete products for the North American market. Cellular concrete offers improved thermal protection at lower cost for a broad range of applications, including insulation; tunnel grouting; the backfill of overpasses, bridge abutments, retaining walls and mechanically stabilized earth panels; highway and runway subbase; and filling voids to prevent environmental spills or pipe collapse.
Cematrix stock (TSXV:CVX) is up by 2.78 per cent, trading at $0.185 per share as of 9:35 am ET. The stock has added approximately 35 per cent over the past year.
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