The parent company of Process Technologies Inc. is in negotiations that could lead to the sale of all or part of the Orchard Park airplane de-icing systems manufacturer's business, the firm said Thursday.
The announcement sent the stock of Process Technologies' Canadian holding company, Radiant Energy Corp., soaring by 21 percent, or 50 cents, to close at $2.90 Canadian on the Canadian Dealing Network for small-cap companies.
Radiant Energy described the negotiations as preliminary and said further talks are scheduled to be held with the potential suitor, which it declined to identify.
"There can be no assurance that a binding agreement will be reached," Radiant Energy said in a statement it issued after trading was halted in the stock Thursday morning.
Trading in Radiant Energy stock was unusually heavy on Wednesday, with 88,700 shares changing hands, which was more than four times the average daily volume. Volume was even heavier on Thursday, with 104,700 shares being traded.
David Hecht, Radiant Energy's secretary-treasurer, declined to comment on the talks, other than to say they are with a party that is not associated with the company or its management.
Process Technologies' InfraTek system uses infrared heaters to melt snow and ice on airplanes, replacing the conventional liquid glycol sprays that can seep into ground water and contaminate the environment.
Process Technologies said its system can de-ice planes faster than chemical de-icing systems and for a fraction of the cost. The system also can produce considerable savings by allowing airports to install chemical containment systems that are far less extensive than those required by de-icing methods that rely solely on glycol-based chemicals.
As a start-up company, Radiant Energy still has no sales and had amassed $989,471 (Canadian) in losses through the first nine months of its fiscal year, which ends in October.
But the announcement comes months after the company put its first environmentally friendly airplane de-icing system for small aircraft into operation at the Greater Buffalo International Airport through a joint venture with Prior Aviation.
The company also has said it could be close to making its first sales. The firm said it hopes to install an InfraTek system at the Rhinelander/Oneida County Airport in Wisconsin this winter.
Funding for the Wisconsin project, which would be the first use of the InfraTek system at a scheduled commercial airport operation, has been included in a federal transportation spending bill that was passed by Congress, the firm said.
In addition, the company said Continental Airlines has indicated that it hopes to install the InfraTek system at its international hub in Newark, N.J. That project is being discussed by airport officials and the staff of the Port Authority of New York and New Jersey, the firm said.
During the summer, the company also received the Federal Aviation Administration's Aviation Environmental Award and won the annual "Technology and Innovation Award" from Aviation Week and Space Technology magazine.