Corporate: These 3 ASX companies surged after announcing deals with major retailers this morning
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Zip (ASX:Z1), ECS Botanics (ASX:ECS) and MWR Wireless (ASX:MWR) this morning launched deals with Amazon, Woolworths and the Good Guys respectively.
Zip’s deal with Amazon was arguably the most significant considering the latter’s global size and gradual expansion into Australia.
From today shoppers on Amazon’s Australian website have the option to pay with Zip. Zip is the first instalment payment option to appear – beating Afterpay.
As part of the agreement, Zip will issue warrants to an Amazon affiliate to buy up to 14.61 million shares (worth over $55m as of this morning).
The company told shareholders this relationship showed it was delivering on its vision of providing customers with convenience and choice in choosing to pay for every day products.
Shares gained 13 per cent this morning and have nearly quadrupled in 12 months.
Also announcing a retail deal was cannabis stock ECS Botanics (ASX:ECS). ECS will distribute its hemp oil into 850 Woolworths stores from January next year.
Assisting with distribution will be Just Foods Australia which manages brands including Pepsi, Cadburys, Oates and Ansell.
Managing director Alex Keach declared this was a very large step in his company’s retail strategy.
The company was unable to say how much revenue would be generated and there were no minimum volumes guaranteed. Nevertheless, ECS shares gained 27 per cent this morning.
Rounding out this morning’s retail deals was smart watch maker MGM Wireless (ASX:MWR). The Good Guys will sell its Spacetalk smart watches at all its stores.
As a result of this deal it is now sold in 588 stores in Australia and 189 in New Zealand.
CEO Mark Fortunatow said the Good Guys was “a terrific place” for customers to discover Spacetalk.
He noted the Good Guys had a friendly shopping environment known for great service and was favoured among its target demographic of women aged 30-55.
Fortunatow added that mobile communications was an important growth area for the Good Guys.
MGM has fluctuated this year but has made strong revenues and this morning gained 6 per cent.