Zenn Motor Company reports inconsistent test results on electricity storage
The corporate logo of Zenn Motor Company Inc. (TSXV:ZNN) is shown. THE CANADIAN PRESS/HO
Published Thursday, October 17, 2013 11:16AM EDT
TORONTO -- Shares of Zenn Motor Company Inc. (TSXV:ZNN) plummeted more than a third Thursday after it reported inconsistent results in tests on electricity storage "layers" produced by EEStor Inc. of Cedar Park, Texas.
Zenn, which has a major investment in EEStor and recently provided a "modest amount" of financial assistance to the company, says its own tests were unable to confirm results similar to those reported by third-party experts retained by EEStor.
Toronto-based Zenn, which once produced low-speed battery-powered vehicles, said it had received the formal report from the independent tester and has been working to "clarify and confirm the information in the report."
Meanwhile, it was able to purchase from EEStor a few samples in order to conduct its own testing, although the units were different than those tested by EEStor.
Zenn said it was taking steps to try to understand issues relating to "complex" testing issues and differing results but warned that the process "may not be completed expeditiously."
"The ability to produce verifiable information is critical to the path forward for Zenn," it added.
On the Toronto Stock Exchange, Zenn shares were down 45 cents, or 34.62 per cent, at 85 cents in morning trading.
Zenn, which stands for zero emissions no noise, halted production of so-called neighbourhood electric vehicles or NEVs several years ago in order to preserve cash.
It has since focused on its rights to privately held EEStor's ultra-capicitor technology which, if it proves viable, would open up a new chapter in electric vehicle propulsion.