Electronic Systems Technology, Inc. (ELST.OB) announced a new distributor agreement last week with Flanders Electric, a company that provides AC/DC Motor Drives and Engineering Services to the mining and metal industry.
For a boring company like ELST, this type of news doesn’t come around often!
According to Flanders,
“The severe RF challenges presented by the nature of mining cause our clients to demand performance above what is commonly available to them through other vendors,” commented Ken Pavloski of Flanders, “our company’s product line is enhanced by leveraging the ease, speed, and reliability of ESTeem network products.”
Read the rest of the press release here.
Flanders is a private company so I couldn’t find accurate revenue information, but based off the website, they have been around for over 60 years and have 600+ employees.
These type of channel relationships can be a huge win for a company the size of ELST.
I originally entered the ELST investment because it was trading at a discount to its liquidation value. As I mentioned in my ELST Q3 earnings update, the business has picked up in 2010 but the stock was missing a catalyst.
The stock jumped a bit on the news before falling back down (I was able to unload some of my position).
It will be interesting to see if this new agreement will spark sales in the subsequent quarters.