NEW YORK (TheStreet) -- Shares of Ballard Power Systems Inc. (BLDP) are higher by 4.45% to $4.33 in early trading on Thursday following the company's announcement it has signed a definitive agreement with Azure Hydrogen relating to an assembly license for Telecom Backup Power Systems in the Chinese market.
The agreement is valued at approximately $6 million over the 2014-2015 period, Ballard Power said.
Terms of the deal say Ballad Power will be the exclusive supplier of subsystems and fuel processors, and will receive royalties for each Telecom Backup Power System sold in China.
"The Telecom Backup Power market is a key growth driver for our business and is also a significant opportunity in China given the scale of the market and China's growing focus on clean energy technology," said Ballard CEO John Sheridan.
Separately, TheStreet Ratings team rates BALLARD POWER SYSTEMS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BALLARD POWER SYSTEMS INC (BLDP) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been poor profit margins."