Tech: Etherstack signs critical comms deal with Samsung, shares rise +300pc
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Wireless technology company Etherstack (ASX:ESK) has signed a network partnership deal with electronics giant Samsung.
Shares in the company took off following the news, rising by more than 300 per cent in morning trade.
The deal will see Samsung integrate integrate Etherstack’s digital LMR (Land Mobile Radio) “soft-switching” technologies into its network offering.
“The partnership combines Etherstack’s two decades of experience in digital LMR and Push to Talk soft-switching with Samsung’s latest mobile network offerings to carriers for public safety communications used by first responders such as police, fire and EMT (ambulance) officers,” Etherstack said.
After trading between 10 and 30c for the last two years, the company’s shares surged from around 12c to above 50c.
CEO David Deacon said the agreement was 12 months in the making, during which time Etherstack and Samsung developed a “secure and efficient solution to integrate public safety networks used by first responders to next generation cellular networks”.
The two companies will now leverage Samsung’s position in 4G and 5G networks to establish a public safety standard around Mission Critical Push To Talk (MCPTT) solutions.
“Etherstack’s global footprint in mission critical markets and innovative technologies, as well as its commitment to open standards, will allow us to deliver premier solutions to the world’s mobile carriers for MCPTT,” Samsung senior vice president Wonil Roh said.
Etherstack said the market for MCPTT was expected to grow significantly over the next three to four years, and Samsung is “committed to open standards-based solutions for the LMR industry”.
Safe technology platform MGM Wireless (ASX:MWR) rose by 20 per cent at the opening bell on the back of a new distribution deal with Vodafone.
The company announced a sales agreement to sell its SPACETALK product — a mobile phone smartwatch for kids — through Vodafone’s network of retail stores, starting in August.
The smartwatch is designed to be worn by children aged five to 12, and has functionality for two-way phone calls and messaging with restricted use of apps and other internet services. It also allows parents to monitor their child’s location in real time.
Despite climbing above 14c this morning, MGM shares are still well off their January highs above 30c and have so far been unable to recapture much momentum amid the COVID-19 market rebound.
In fintech, financial services payments company Quickfee (ASX:QFE) announced it had extended and increased existing debt facilities with lenders in the US and Australia. The stock rose by 7 per cent in morning trade and is up by around 300 per cent from its March lows.
And Wisetech Global (ASX:WTC) founder Richard White turned heads with a big cash-out, following news he sold 2.25 million shares in the company to institutional investors yesterday, for a sum of $41.3m. Shares in WTC traded 2.6 per cent lower at $19.27.