Ultralife (ULBI) Stock: Over 25% Increase Pre-Market Explanation

By Amit Chowdhry ● May 18, 2021
  • The stock price of Ultralife Corp. (NASDAQ: ULBI) increased by over 25% pre-market. This is why it happened.

The stock price of Ultralife Corp. (NASDAQ: ULBI) increased by over 25% pre-market. Investors are responding positively to Ultralife receiving a firm-fixed price indefinite-delivery/indefinite-quantity contract from the U.S. Army for purchases of Conformal Wearable Batteries not to exceed $168 million during the 3-year base award period with the potential for up to an additional $350 million should the six one-year option periods be exercised. 

The timing of deliveries and quantities are at the discretion of the U.S. Army. And it includes successful completion of First Article Testing demonstrating full compliance with the contractual product specifications and program requirements.
Ultralife’s contract was awarded as part of the $1.25 billion multiple-award contract for Conformal Wearable Batteries being developed under the U.S. Army’s Tactical Power Generation Program. And the lightweight lithium-ion rechargeable batteries will provide soldiers with a power source capable of sustaining dismounted operations in remote areas for up to 24 hours and are envisioned to increase soldier mobility by reducing the weight and quantity of batteries needed to be carried.

KEY QUOTE:

“Ultralife is a long-standing supplier to the U.S. military and our products are recognized for their long-life, unsurpassed safety record and reliability under the toughest conditions. Our selection to participate in what could be a military battery program extending up to nine years, demonstrates the effectiveness of our new product development strategy of designing and building technically advanced batteries in collaboration with our strategic partners. We look forward to expanding our heritage of supporting soldier modernization initiatives by providing the highest quality, mission-critical power solutions.”

— Michael D. Popielec, Ultralife’s President and Chief Executive Officer

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.