On Monday, May 6, shares of Aemetis Inc. (AMTX Stock Chart) Jumped nearly 100% before the opening bell. This penny stock was still trading below $1 at the end of the first week of the month. AMTX stock closed at $0.87 On May 3. But as the majority of Wall Street dropped deep into the red on Monday morning, Aemetis jumped up, big!
Why Did Aemetis Inc. (AMTX) Stock Move Up So Much?
As with many micro cap stocks, a little bit of penny stock news goes a long way. In this case, it was a positive announcement on a milestone development achieved by the company. Aemetis announced that its Universal Biofuels India subsidiary was awarded a biodiesel supply contract. This wasn’t just any contract. It was a deal with 3 India government-owned oil marketing companies. This agreement allows Aemetis the ability to conduct ongoing deliveries of biodiesel to a number of blending locations. The aggregate amount of this deal is more than $23 million during 2019. Aemetis will begin to act on this deal this month.
“With the recent completion of our plant pretreatment unit and expansion to 50 million gallons of capacity per year from low cost, high free fatty acid feedstock, the Aemetis team in India is executing on a rapid increase in production and revenues this year by broadening our customers to include government, logistics, mining, retail fuel stations and other sectors. As the only US company producing biofuels in India, Aemetis built and has now fully upgraded our India biodiesel and refined glycerin plant to use low cost feedstocks as a leader in this rapidly expanding market.”Eric McAfee, Chairman and CEO of Aemetis.