UPDATE: IkeGPS shares jump on distribution contract with Stanley Black & Decker
Shares of IkeGPS climbed 11 percent after the remote measuring device developer signed a manufacturing and distribution deal with Stanley Black & Decker which will help it meet its prospectus sales forecast.
The deal underpins at least $1.47 million of original equipment sales for the 2016 financial year as set out in its June prospectus, chief executive Glenn Milnes told BusinessDesk. The global tool and equipment business will sell the app, which uses ikeGPS technology, under the SBD brand, although Milnes was constrained by how much he could say ahead of the product's launch.
"This arrangement further supports our objective to build out a subscription-based software offering for targeted sectors - in this case within the architecture, engineering and construction market," Milnes said. The deal will provide "access to SBD's worldwide network of retailers and distribution partners in the construction and DIY industries."
Shares of ikeGPS climbed 10 cents to a month-high of $1. The company raised $25 million in new capital to fund its US expansion and product development when it listed on the NZX in July, through the sale of 22.7 million shares at $1.10 apiece but has since failed to trade above its offer price.
It is the third such deal the company has made this year, after securing a manufacturing and distribution agreement with General Electric for the GE MapSight tool in January and a development agreement with US-based defence innovation firm In-Q-Tel in October.
IkeGPS is forgoing profit as it chases growth in the US market, and sees particular opportunity in the intelligence and security sector. The company is forecasting its net loss will widen to $5.33 million this year, and extend further to a loss of $5.8 million in 2016.
Earlier this month the company announced the appointments of former Apple Inc executive Richard Mander and Trimble Navigation's Peter Shaw as it accelerates its push into the US market.