Sonex stock jumps 42% on the day Engine piston powers the move

February 04, 1997|By Ted Shelsby | Ted Shelsby,SUN STAFF

Shares of Sonex Research Inc. rose 42 percent yesterday amid speculation that the Annapolis-based company is close to signing an agreement to license its technology for the production of a piston designed to reduce emissions in diesel engines.

In the past week, Sonex shares have risen more than 80 percent. They closed yesterday at $1.25, up 37.5 cents. A week ago they were trading at 68.75 cents.

Andrew A. Pouring, Sonex's chief executive, attributed the rise to "pure speculation that we are finally going to sign an agreement we have been negotiating for the last year.

"I think people were just anticipating an agreement," he said. "They are jumping the gun and trying to get there early, I guess. That's all I can say."

For several years Sonex has been telling shareholders of negotiations with European and Japanese piston manufacturers who are interested in mass production of the engine piston that Sonex has been developing for more than 15 years.Sonex has declined to identify the manufacturers.

Pouring said the signing of the first licensing agreement would make it easier for Sonex to sell its product to other piston manufacturers.

At the company's annual stockholders' meeting in October, Pouring told investors of negotiations with a "very large international [engine] manufacturers."

Pouring and other executives told the more than 100 shareholders attending the annual meeting that within six months the company could sign contracts with at least one engine maker, and perhaps even a second, to produce an engine with Sonex pistons.

Pouring said yesterday that the negotiations have taken much longer than expected and that it was difficult to predict when an agreement might be reached.

Pub Date: 2/04/97

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