Ecoland International, Inc. (ECIT) awarded new contract, shares rise
Posted on: December 5th, 2011Written by:
Shares of Ecoland International, Inc. (OTCBB: ECIT) climbed 16 percent on Moncontract from Johnson Controls on Monday after the Arizona-based company announced that it was awarded a contract from Johnson Controls (NYSE: JCI) exceeding $1.2 million, to be delivered over the next four months.
ECIT shares touched a high of $0.43 in morning trading on Monday, up from Friday’s closing price of $0.37.
According to a December 5 press release, the newly awarded project “signals the beginning of the second phase of Johnson Controls’ production relocation project,” which Ecoland’s subsidiary, D&R Technology has participated and “played an important role in for the last twelve months.”
The project “demonstrates the success of our business strategy and the confidence of our customer in our ability,” said D&R’s president Drasko Karanovic in the December 5 press release. “It is flattering to be one of the companies that helped Johnson Controls’ achieve best ever financial results for the past year. Our objective for the next period is to maintain and further develop this mutually beneficial relationship. Johnson Controls is world’s market leader in automotive seating with about 45% of the market. We see tremendous potential for our growth by simply satisfying their needs in the global market.”
For the three months ended August 31, Ecoland reported sales of $3,376, and a net loss of $47,730.
In early November, the company announced that it closed the acquisition of D&R Technology, Inc. Pursuant to the share exchange agreement, D&R’s shareholders will receive a majority share ownership in ECIT and it is anticipated that a name change will be made reflecting this change in majority share ownership. Also, according to the share exchange agreement, D&R’s management team will assume operational and managerial control effective immediately, a November 7 press release stated.
D & R Technology Inc. provides engineering, design and the manufacturing of automated tube processing solutions for the automotive industry.
