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TORONTO, Oct 17 (Reuters) - Shares of Zenn Motor Co Inc , which hopes to provide battery technology for the transportation industry, tumbled more than 40 percent on Thursday after Zenn released disappointing test results from a product it is helping to develop.
Zenn Motor produced the ZENN LSV, a low-speed, zero-emissions vehicle before ceasing production in 2010 and turning its focus to supporting research and development of electrical energy storage units by EEStor, a privately held company based in Texas.
Zenn Motor, which has an agreement for certain exclusive rights to purchase and deploy EEStor's technology, said on Thursday it could not yet to confirm EEStor's latest test results, but said the testing was extremely complex and could take time.
EEStor says its units will store over 10 times the energy of lead-acid batteries on a volume basis, have up-front cost advantages and greater longevity over traditional chemical-based batteries.
Toronto-based Zenn also said it recently provided a modest amount of financial assistance to EEStor, which been experiencing financial difficulties.
Zenn Motor shares were down 54 Canadian cents, or 41.5 percent, at 76 Canadian cents on the TSX Venture Exchange. (Reporting by Solarina Ho; Editing by Jeffrey Hodgson and Leslie Adler)