Just out - Upgraded to .5729 Jan 2024 14:32
WHI Flash Light: DG Innovate
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DG Innovate (DI) - Corporate - Potential new business streams opening up rapidly following arrival of new team
Market Cap £23.0m Share Price 0.22p (prev. close)
This morning's announcement from DGI suggests there is strong momentum at the company now following the arrival of three senior and highly experienced executives in the
EV space combined with last month's £2.4m fundraise which materially strengthened the company's funding position. The new agreement announced this morning will see DGI work with its partner to apply its Pareta® system technology in a new way, resulting in leading performance systems for heavy goods vehicles. DGI has developed novel and innovative technologies focusing on motor and drive technology which is high-power, efficient, cost-effective and robust.
The fully funded development phase, expected to
generate prototypes during the course of H1 will be followed by on-vehicle trials as early as
H2-24, so further encouraging newsflow should be expected during the course of the year.
This morning's news follows on from the announcement of a new incoming senior management team in mid-December.
This was in itself a major validation of the
company's technology in our opinion, in view of the new team's extensive experience in the sector / EV market, each having held senior roles within Tesla. Having developed its novel electric vehicle drivetrain and battery material technology over a number of years, the market-leading performance of DGI's systems has attracted interest from a range of customers and it would appear that potential of the company's technology, which benefits from pioneering design and excellent safety and efficiency characteristics, is now coming to fruition.
WHI View: The announcement today looks like a further affirmation of DGI's readiness to bring its innovative technologies to the market in the near term, while, under new leadership, pursuing the many and broad opportunities which exist. We continue to see upside in the shares, underpinned by the size of the market and improving commercial opportunities.
Following the indications about further market opportunities highlighted
today, our DCF-based fair value now stands at 57p (was: 50p) but again we see further potential upside as the new team develops its strategy further, and with a platform now in place creating space for new opportunities and further partnerships.
Nick Spoliar
Analyst
nick.spoliar@whirelandcm.com
0207 220 1761
Charlie Cullen
Analyst
charlie.cullen@whirelandcm.com
0207 220 1674
Company / Issuer Disclosures
Company Name
Date
DG Innov