LOS CABOS, Mexico - Crown Electrokinetics Corp. (NASDAQ:CRKN), a smart glass technology firm also specializing in fiber optic network construction, announced today an agreement to build slant wells for a desalination plant at the Twin Dolphin Club in Los Cabos. The project, which is set to begin later this spring and expected to finish by early fall, involves an upfront payment of $1.2 million and has a total contract value of $3.5 million.
The desalination plant is designed to provide fresh water to the hotel and its future residential developments within the 1,400-acre resort. Crown's Fiber Optics division, under the leadership of the newly appointed President of Construction, Corey Boaz, will manage the construction.
Doug Croxall, CEO of Crown, stated that this contract demonstrates the company's ability to diversify its services beyond fiber optics into areas such as electrical and irrigation work. The innovative slant well construction technique is anticipated to open up new revenue streams in Mexico, Central America, and the Caribbean.
Crown also expects this deal to lead to similar future projects, enhancing the company's revenue prospects. Croxall hinted at the possibility of providing financial guidance as early as next week, given the closure of this deal and others in the pipeline.
Crown Electrokinetics is composed of two main divisions: Fiber Optics and Electrokinetics Film. While the Fiber Optics division constructs underground fiber optic networks and other utility infrastructure projects, the Electrokinetics Film division focuses on smart window technology based on its patented electrokinetic film.
This announcement is based on a press release statement.
InvestingPro Insights
In light of Crown Electrokinetics Corp.'s (NASDAQ:CRKN) recent announcement of its new project in Los Cabos, a glance at the company's financial health and stock performance provides a broader context for investors. According to InvestingPro data, Crown Electrokinetics holds a market capitalization of just $2.75 million, indicating a relatively small enterprise value within the industry.
The company's Price / Book ratio for the last twelve months as of Q3 2023 stands at a low 0.3, which suggests that the stock might be undervalued relative to the company's net asset value, a point of interest for value investors. However, this metric should be considered alongside the company's gross profit margin, which is notably low at 8.47% for the same period, reflecting challenges in converting sales into profits.
Investors should also note that the stock has experienced a significant decline in price over various timeframes, including a -99.38% one-year price total return as of the 66th day of 2024, and is trading near its 52-week low at 0.45% of the high. This performance aligns with InvestingPro Tips, which highlight that the stock has taken a substantial hit over the last week, month, and six months, indicating a bearish trend in investor sentiment.
For those considering a deeper dive into Crown Electrokinetics' financials and stock analysis, InvestingPro offers additional tips that can shed light on the company's cash position, valuation, and profitability expectations. There are 16 tips in total available on InvestingPro for Crown Electrokinetics, which could prove invaluable for making informed investment decisions. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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