In a decisive judgement released today, June 26th, the Federal Court of Canada has ruled overwhelmingly in favor of Tekna in their IP case against Advanced Powders & Coatings Inc. (AP&C) patents at issue. It was ruled that AP&C’s Canadian patent no. 3,003,502 is, and has always been, invalid and void, and that AP&C’s Canadian patent no. 3,051,236 is also invalid except for a few select claims that are not infringed by Tekna in any event.
What this means for Tekna? We applaud Tekna for this HUGE win and we believe it solidifies Tekna as a clear leader in production of metal alloys via plasma-based technology. Most importantly it clears the runway for them to continue the incredible traction they have made with global aerospace, medical and consumer electronic companies globally. We also believe it may now open up Tekna as a premier acquisition candidate. However, assuming Tekna stays a stand alone company, if they can execute on 70% of their long-term revenue targets they laid out on the 1Q24 earnings call, we believe it can translate into material upside for shareholders. See our detail 5-year forecast and price target valuation here.
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