In 2013 Integral Technologies signed a letter of intent with BASF, an $87B global conglomerate "to jointly explore the North American market for ElectriPlast's patented line of conductive thermoplastics" (Integral annual report).
We recently learned that BASF showcased an 'Electrically Conductive and Shielded Thermoplastic' at the 2015 International Plastics Showcase that took place in Orlando, Florida March 23-27. A pamphlet from BASF is incorporated for reference HERE.
We have two quick takeaways from this event.
1. BASF exhibiting a product that is [almost certainly] Integral Technologies' ElectriPlast bodes well for the Company and is in line with CEO Doug Bathauer's committment to shareholders to monetize strategic partnerships (eg. BASF, Hanwha et al.). We also believe that this could mean a material order is near and will transition the Company to a fully-commercial stage.
2. We believe the upcoming Battcon or International Stationary Battery Conference taking place May 12-14 is a potential catalyst for Integral shareholders. East Penn, who has contracted Integral for engineering services related to wire and cable applications, is scheduled to appear at the trade show. Following in BASF's footsteps, we would not be surprised if East Penn's exhibit, in part, included ElectriPlast, particularly on the heels of patents filed by East Penn incorporating Integral Technologies' composite plastic.
We see the upcoming Battcon as a meaningful event for investors in Plug Power (NASDAQ: PLUG), FuelCell Energy (NASDAQ: FCEL), Hydrogenics (NASDAQ: HYGS) and other battery-related names to follow, as we believe ‘Lightweighting Is To 2015 What Fuel Cells Were To 2013'. Integral Technologies is a pure-play on the light-weighting opportunity.
Integral Technologies makes a carbon-fiber reinforced plastic material (“ElectriPlast”) that is electrically-conductive and could displace heavier metal components like steel, copper and aluminum used in casings, for instance in automobiles but naturally across numerous industries. The Company has collaborative agreements in place with Hanwha, Delphi Automotive, BASF and East Penn to globally commercialize the product.
Last month, One Equity Research initiated coverage of Integral Technologies with a deeper look at the $300 Billion lightweighting opportunity. We stated that Integral could see upside of $1 per share, or higher on execution of commercial deal(s). Concurrent to the Battcon conference, ITKG will report earnings - and hopefully update investors on progress with commercial partners – around May 15th.
This gives sidelined investors a good reason to own ITKG heading into the month of May.
