A small Vancouver-based solar company just announced that it has signed a Joint Development Agreement with Abundant Solar Power to jointly pursue large-scale utility solar projects in the U.S. Southeast. Coming from its usual business of residential solar, shares of Solar Alliance Energy Inc. (OTCPK:SAENF) soared as traders eyed this news as a huge opportunity for the micro cap.
Solar Alliance Energy markets, sells and installs residential rooftop solar systems. It is mainly focused on residential, commercial and industrial solar installations. The company operates in three geographical markets - the United States and Canada. The United States contributes the majority of total revenue.
Traders were bullish on the news as shares shot up to $0.20/share (+21.21%) at the session high following the announcement. This move could potentially be the catalyst to break out of the multi-month, downtrending resistance that the stock has been corralled by since making its 52-week high of $0565/share back in February.