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ACTIVE CONTROL TECHNOLOGY INC.- (ACT - CAD$0.19)

Target Price: CAD$0.40 Recommendation: BUY

ALERT: NEW CUSTOMER WIN WITH INCREMENTAL $1.4M ORDER POST MSHA DEADLINE

Yesterday was the deadline for U.S. coal mines to submit their Emergency Response Plans (ERP) to MSHA (U.S. Federal Mine Safety and Health Administration) for approvals. On the back of this catalyst and through its distributor Fairmont Supply, this morning Active Control announced two purchase orders from a new customer, totaling $1.4M. For competitive reasons, Active Control has not disclosed the name of the customer or any other details. The announcement is in line with our expectations (no changes to estimates). We reiterate our BUY recommendation with $0.40 target based on 4x C2010 sales/share.