NEW YORK (TheStreet) -- Methes Energies (MEIL) surged Friday after the company announced it is nearing completion of a deal with a large national U.S. aggregator and a downstream distributor to provide up to 40 railcars of biodiesel, or up to 1 million gallons, a month for the remainder of 2014 and afterwards.
This qualifies the company as an importer of record of biodiesel into the U.S. and also allows it to create Renewable Identification Numbers, or RIN's, in the country. This should lead to better margins Methes gives the company the ability to sell directly to U.S. buyers.
"We're very excited about the opportunity to bring our Sombra facility to full current production capacity," said company president Nicholas Ng in a statement. "At current prices these new arrangements can add up to $4 million per month to our biodiesel sales. Also, the fact that we can now sell directly to U.S. buyers will make things much easier for us and enhance our ability to attract additional U.S. customers. This might get us to increase capacity in Sombra sooner rather than later."
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The stock was up 21.22% to $3.20 at 1:49 p.m. More than 1.2 million shares had changed hands, which dwarfed the average volume of 24,342.
Separately, TheStreet Ratings team rates METHES ENERGIES INTL LTD as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation: