Why Did SAFX Stock Surge 20% On Monday?

• The two companies signed an MoU to develop and scale the production, distribution, and logistics of sustainable aviation fuel and other renewable fuels like naphtha and diesel.
• As part of this collaboration, BGN has joined the International Air Transport Association.
• Earlier this month, Chris Cooper joined the company as the chief executive officer.

Shares of XCF Global, Inc. (SAFX) surged 20% on Monday, after the aviation fuel company signed a renewable fuel deal with global energy and commodities group BGN Int., U.S.

The two firms signed a memorandum of understanding (MoU) under which they will focus on developing and scaling the production, distribution, and logistics of sustainable aviation fuel (SAF) and other renewable fuels such as naphtha and diesel.

Details Of The Agreement

The agreement will see the companies work together on renewable fuel production, marketing, and global distribution for major airlines. It outlines potential offtake and co-branded distribution arrangements, as well as the joint development of new renewable fuel production capacity.

The agreement also includes efforts to promote XCF’s SAF across industry trade associations, OEM networks, and the broader aviation value chain. As part of this collaboration, BGN has joined the International Air Transport Association (IATA), the global trade association for the airline industry.

“BGN’s trading strength, risk management expertise, and integrated logistics network, will make SAF adoption practical and commercially viable for airlines seeking to meet tightening decarbonization targets. This is a major step, which we believe will have a significant impact on the aviation industry’s ability to reduce emissions, in one of the hardest-to-abate transport sectors,” said Cenan Ozmeral, President of BGN Int., LLC.

Earlier this month, Chris Cooper joined the company as the chief executive officer. He had previously served as President of Neste U.S. and held leadership roles at Chevron and Phillips 66.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits flipped to ‘bullish’ from ‘bearish’ in the previous session.

One user believes that the stock is undervalued.

However, on a year-to-date basis, SAFX stock has tanked 92%.

Also See: PayPal Expands BNPL Partnership As KKR Agrees To Buy Up To €65 Billion In European Loan Receivables

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on