Energy Focus Jumps on Distribution Deal

Energy Focus shares leaped after the LED lighting and UV-C disinfection company unveiled a marketing and distribution partnership with threeUV.
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Shares of Energy Focus  (EFOI) - Get Report leaped after the LED lighting and UV-C disinfection company unveiled a marketing and distribution partnership with threeUV.

The partnership will see Energy Focus, Solon, Ohio, offer its line of UV-C Air and Surface Disinfection solutions to institutional and government purchasing cooperatives across the country.

"As the world recognizes the importance of indoor environmental safety in the wake of the COVID-19 pandemic, effective and constant disinfection has become both an unprecedented priority and a permanent necessity in helping to eliminate viruses, influenza, [methicillin-resistant staphylococcus aureus] and other bacteria and pathogens that cause infectious diseases," Chief Executive James Tu said in a statement.

Shares of the company closed Thursday trading up 35% at $5.81.

ThreeUV is one of five vendors recently awarded a three year supply agreement for UV-C stationary cleaning systems, which use ultraviolet light to disinfect surfaces.

It's a unit of Med Solutions, the Alpharetta, Ga., provider of services to enable medical-device producers to market their products in the U.S.

The FDA recommends disinfectant light for cleaning surfaces of COVID, flu germs and other viruses and bacteria.

The deal could see annual volumes of $50 million, the companies said in a news release. The supply agreement covers 23,000 public and non-profit sector agencies and over 9,000 school districts across the country. 

"Over 9,000 K-12 school districts buy off these contracts, and we see Energy Focus UV-C surface and air solutions as a key, differentiated offering to this customer group," threeUV CEO Nathan Branch said.