Major European Deal Could Send This Microcap to the Big Leagues

Dear Reader,

Big news broke yesterday concerning a recently penned collaboration between a major European vehicle-maker and a Canadian tech firm specializing in a unique technology designed to optimize the performance of electric motors and generators.

While a non-disclosure agreement currently prevents the name of the European partner from being mentioned in public, the tech firm on the other side of the deal is a company that I've been following for some time now.

Long enough, in fact, to have watched the company's stock rocket from $0.25 (CAD) to almost $6 early last year.

Readers of my premium publication, Microcap Insider, got to benefit from this spectacular gain in share price as the company went from what was essentially a tech startup to the global purveyor of a technology that has disruptive applications in everything ranging from consumer tech design to EV and mass transit manufacturing.

For those who missed the story, here's a quick elevator pitch of what this technology does. 

The World's Single Most Important Mechanism

The electric motor, since its advent in the first quarter of the 19th century by British engineer Michael Faraday, has become the world's most common electrically driven mechanism.

In fact, more than half of the watts produced by humanity wind up giving life to some type of electric motor, whether it's to spin the propellers of a giant ship or turn the winch responsible for raising an elevator from the ground floor to the top of a high-rise, electric motors make the modern world go around — quite literally.

The problem, however, is efficiency. Since the advent of the electric motor, the same basic design has been used and reused with almost no fundamental redesigns.

Motors have grown bigger and more powerful, but as far as the guts go, it's still the same spool, the same copper wire, and the same electrons chaotically flowing through that copper wire to turn electromagnetism into rotational force.

As ubiquitous as they've become, all modern electric motors suffer from the same shortcoming that the first prototype suffered: Peak torque can only be achieved at one set rotational speed.

Go faster or slower and you get less output for the energy you input.

One Small Change… Changes Everything

The Canadian company I mentioned above was created for one purpose: To tame the current within that spool.

Using artificial intelligence, this company managed to regulate the current within the electric motor's core to achieve maximum torque levels at a wide spectrum of RPM.

The resulting benefit was an 8%–10% increase in overall efficiency.

With electric motors gobbling up better than half the world's power, that equates to about the annual electrical consumption of the United Kingdom, gained by implementing this one technology.

It's simple enough in concept to explain, but was an Everest-sized engineering hurdle to overcome to actually make work.

It took years of experimentation to perfect, but today, all of that toil is finally starting to pay off.

Though this Canadian company has already partnered with a number of firms to showcase this smart-motor technology (including an electric boat-maker and an electric bike-maker), today's news represents the single most important leap forward.

The EV market was and always has been the Holy Grail application for this tech, and now the first such partnership is in place.

From Microcap to Midcap in the Next Three Years? 

According to the conditions of the deal, anywhere between 8,000–10,000 units will be purchased by the unnamed European firm.

That alone represents a substantial financial boon for the Canadian company, but, more importantly, it will set a potentially multibillion-dollar precedent for the rest of the transportation industry.

As you may know, the Europeans already have legislation in place that will ban fossil fuel-burning vehicles by the middle of the next decade — which makes Europe the most important region for testing and adopting EV-related technologies.

This company, by all reasonable measure of value, should have been worth in the billions by this stage of development, but, as luck would have it, as of this morning all outstanding shares add up to a measly $110 million.

You can blame the market for that, as this time last year that figure was three times higher than it is today.

With yesterday's news, the inefficiency in share pricing grew even more as retail investors responded skittishly to this major press release.

Follow the Facts, Not the Herd

But don't let this tepid response fool you. What investors fear today they will be regretting tomorrow as the entire EV industry starts to count the benefits of this technology to every road-going car, truck, and bus.

There's a lot to explain here and a lot of background to cover, but, luckily, I have just the thing for those lacking the time or attention span.

Our video production team put together an informational presentation that should give you all the details you need — not just on the company, but on the mid- and long-term stock potential.

Remember, this stock's already traded at close to CAD$6. If today's momentum persists, it could easily revisit and exceed this pricing in 2023.

I urge you to take a look at this video. My entire premium subscribership has seen it, and you should too.

Access is instant, free of charge, and requires no registration.

Enter here.

Fortune favors the bold,

Alex Koyfman

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His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.