Ottawa's Allen-Vanguard Corporation has won a $15.3 million contract to provide blast protection equipment for armoured vehicles used by the United States military.
The company announced the contract on Monday from General Dynamics Land Systems-Canada to provide 2,178 Commander Blast Seats for the Stryker vehicle, beginning in 2009.
The eight-wheeled Stryker has been deployed with American forces in Iraq and can travel at speeds of 100 km/h. It carries up to nine people plus a two-person crew.
Allen-Vanguard's seat technology is designed to protect crew from blasts from improvised explosive devices (IEDs), a hallmark of insurgent attacks in both iraq and Afghanistan.
Allen-Vanguard (TSX: VRS) shares jumped more than 30 per cent Monday morning, to about $0.37, after news of the deal.
But the company's shares have fallen from a high of $5.70 earlier this year. Lenders have extended a $10 million refinancing package until Dec. 31. More details are expected this week.
The firm cut 15 per cent of its global workforce this fall to lower overall costs. Most of the 100 layoffs were in Great Britain, but some affected Ottawa workers.
Allen-Vanguard is seeking more markets for its blast protection seat technology, according to a company release.
