Shares of Filtronic PLC (LSE:FTC) rocketed 48% after it emerged that Elon Musk's SpaceX could become a major shareholder in the unheralded microwave technology group.
Filtronic will supply E-band Solid State Power Amplifier modules for SpaceX's Starlink satellite constellation under a $19.7 million deal.
In conjunction with the strategic partnership, Filtronic will issue a total of 21.7 million warrants to SpaceX. These warrants allow the US group to acquire shares totalling 10% of Filtronic's equity base.
The warrant issue is structured in two tranches, with vesting tied to the purchase orders from SpaceX, potentially reaching full vesting once SpaceX places orders totalling approximately $60 million.
In early trading, the stock was up 16p at 49p.