Leo Motors Inc (OTCMKTS:LEOM) had been on a steady downtrend in 2016. However, the company just corrected to the upside and better days look ahead after LEOM signed a $30 million contract. While shares have tripled off the 52 week lows, they’re still 50% off the highs seen earlier this year. After jumping 126% on the news, we’re taking a closer look at Leo Motors Inc.

LEOM has developed a patented battery swap system which enables vehicles to operate 24-hours a day without downtime for charging, as is currently the only solution with end users. By using LEOM technology, end users may swap-out used batteries with freshly charged batteries. Unlike its competitors, LEOM’s battery swap system allows it to use low cost equipment in swapping as a result of its patented cartridge battery system. This results in power package being divided into many lighter pieces.

In addition, LEOM has developed a patented electric shock prevention system for electric motor boats and power yachts. Electric boat power systems have traditionally presented electric shock hazards because of the proximity of water. Thus users of “e-boats” are exposed to the potential of fatal electric shock accidents. LEOM’s proprietary technologies eliminate such dangers and this innovation positions LEOM as the first company in the world to offer safety compliant water-friendly electric boats.

The $30 million contract is with Miho Story Inc, which is one of the largest mobile phone marketers in Korea for the past 10 years. They have patented the business model of the smart phone vending truck. Currently, the Korea government regulates the Internet and mobile sales of cellular phones to prevent phone fraud. The cellular phone marketer must verify the purchaser’s official Identification Card using an ID scanner. Miho’s vending truck will deliver smart phones on the street as well as those ordered through the Internet and on mobile devices.

LEOM will manufacture these vending trucks for Miho. The initial order totals approximately $30 million for 500 trucks. This will be followed in two years by the manufacture of 1,000 trucks for an additional $60 million. The vending trucks will be equipped with Leo Motors Korea’s proprietary high efficient Energy Storage System (ESS) that interacts with the cloud server and the vehicle diagnosis system developed by Leo Artificial Intelligence Connected, Inc, another LEOM subsidiary. Additionally the ESS power source is “swappable” using Leo’s patented cartridge battery system.

By using ESS, the trucks avoid using Internal Combustion Engines and their pollution while using electricity to market smart phones and their accessories on the street. Being connected to Leo’s patented Multi Drive Recorder (MDR), allows vending truck operators to move in real time to high sales potential locations. LEOM’s connected car technology also provides anti-theft, on road battery swap, and real time maintenance services because LEOM’s MDR is continually scanning every component of the vending truck.

This news marked the first we’ve heard from LEOM since September 29, when the company unveiled two electric power trains for sailing yachts at the “Grand Pavois 2016” international boat show in La Rochelle, France. The power trains included both inboard and outboard 90 horse power (67 kW) electric propulsion systems. The focus was that LEOM’s newly patented electric shock prevention circuits eliminate the traditional and potentially fatal shock hazard risk of electric boat power systems because of the proximity of water. The advantage here is that electric boats operate with substantially less noise than Internal Combustion Engines (ICE), and without the polluting stench of oil, diesel, or gasoline. These advantages enhance the pleasure of sailing yachts. Despite this, few electric boats have been developed throughout the world due to perceptions of high technology barriers.

Currently trading with a market cap of $29 million, LEOM is an exciting story on the OTC Markets. The deal with Miho Story is indeed a game changer for the company and opens up avenues for more contracts and markets. One market that LEOM has its eye on is China, which has perhaps the worst smog and highest pollution levels of any major economy. LEOM has already made inroads into China and this latest deal might just speed up further developments for Leo Motors there. We will be updating our subscribers as soon as we know more. For the latest developments on LEOM, sign up below!

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Disclosure: We have no position in LEOM and have not been compensated for this article.