Powerhouse Energy Group PLC (AIM:PHE) saw its share price soar by 57% after resolving a claim by Onunda Ltd (formerly GetGo Recycling Limited) against its European patents.
The agreement allows Powerhouse to advance its patent applications globally and prevents future challenges from Onunda or its affiliates.
"This is a major step forward for Powerhouse and I am pleased that this matter has been resolved," said Powerhouse CEO Paul Emmitt.
"The whole process has been extremely time-consuming and a significant diversion for the team over the last seven months.
"The closure of this matter now allows us to return to our main goals of progressing our R&D activities, the FTU and our project pipeline which we believe will provide value to our shareholders."
In morning trading the stock was up 0.72p at 2p.