Azure announces bus partnership deal, stock climbs

OTTAWA, April 9 (Reuters) - Azure Dynamics Corp's
penny stock climbed higher on heavy volume on Thursday after it
announced a partnership with Collins Bus Corp to market hybrid
electric school buses.
Under the arrangement, Collins will offer Azure's hybrid
electric powertrain as an option on the Type A school buses it
builds on Ford E-450 chassis. Collins, which also manufactures
ambulances and trucks, said it is North America's largest maker
of small school buses, which carry 14 to 30 passengers.
Azure stock rose 1.5 Canadian cents to 5 Canadian cents as
nearly 3 million shares changed hands, well above the average
daily volume of 350,000 shares over the past 30 days.
"Azure is a leader in its space and worthy of investment as
an auto sector alternative energy space opportunity," said
Paradigm Capital analyst Marvin Wolff in a note last week.
Toronto-listed Azure said its electric drivetrain can
increase fuel economy by 40 percent, reduce maintenance costs
by 30 percent and cut emissions by up to 30 percent.
Azure, based in Detroit, is chasing the market for
commercial delivery vehicles and shuttle buses. It makes hybrid
electric and electric components along with powertrain systems
for commercial vehicles for such customers as FedEx, Purolator,
and AT&T.
Earlier this week Azure said it would delist its shares on
AIM, the London Stock Exchange junior market, effective May 8
due to low trading volumes and costs for the listing.
That follows a cost-cutting plan launched in November that
axed 25 percent of staff and reduced all discretionary expenses
to offset increased component costs.
"The alternative energy funding programs that the U.S.
government has initiated are starting to show up through
increased quoting activity for Azure," wrote Wolff, who rates
the stock a "buy".
($1=$1.23 Canadian)
(Reporting by Susan Taylor; editing by Rob Wilson)
((susan.taylor1@thomsonreuters.com; +1 613 235 8385; Reuters
Messaging: susan.taylor1.reuters.com@reuters.net))
Keywords: AZUREDYNAMICS/

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