This is not the first time Comstcok and RWE have partnered. / Photo: Unsplash/Andreas Gücklhorn
Shares of Comstock, a small-cap emerging technology and materials company, jumped more than 11% yesterday, April 16. The company announced it will become the “preferred strategic partner” of the U.S. subsidiary of energy giant RWE, recycling expired solar panels.
Details
Comstock surged more than 11% on the New York Stock Exchange yesterday to close at $2.16 per share, its highest mark in two weeks. However, shares remain down 73% year to date.
Yesterday, the company reported that its Comstock Metals division had signed an agreement with RWE Clean Energy, the U.S. subsidiary of German energy giant RWE. Under the deal, Comstock will become RWE’s “preferred strategic partner” for recycling, disposal, and decommissioning services for RWE’s large-scale solar installations across the U.S.
The two companies have partnered before: Comstock previously coordinated the decommissioning, transportation, and recycling of over 4 million pounds (around 1.8 million kilograms) of expired solar installations and their components for RWE in Nevada and California. Comstock currently expects an increase in recycling volume, driven by rising demand for responsible end-of-life solar panel management.
About Comstock
Comstock has built its business around sustainability, emphasizing more responsible use of natural resources. The company develops technologies and materials for decarbonization. Comstock Metals recovers all valuable materials used in solar panel manufacturing, thus preventing them from ending up in landfills. Another division, Comstock Fuels, has developed a fuel blend that, according to the company, can convert wood into biofuel efficiently and profitably.
In a letter to investors in January, CEO Corrado De Gasperis wrote that in the four years since its founding, Comstock had evolved from a startup into a company ready to rapidly commercialize. He also noted that the company’s divisions are partnering with globally recognized firms. Comstock plans to build three renewable metals production facilities and several renewable fuel plants, owned or licensed.
But those ambitions require cash. In the January 10 letter, De Gasperis announced plans for a 1-for-10 reverse stock split, without changing the total number of authorized shares. This triggered a steep selloff: The day after the letter went out, the stock plunged nearly 50% to $2.80 per share and has yet to recover.