Wearables play MGM Wireless hits a 10-year high – and ten-bagger status – after Kiwi deal
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MGM Wireless, which makes a smartwatch designed to keep kids safe by limiting access to the internet and social media, hit its highest point since 2017 today after signing a New Zealand distribution deal.
Spark, a $6.6 billion dollar telecommunications provider, will stock MGM’s “Spacetalk” smartwatch in its 73 New Zealand stores starting November 14.
The news bumped MGM (ASX:MWR) ahead 16 per cent to an intraday high of $3.65 — its highest point since November 2007. The shares later settled back to $3.52.
The stock is up ten-fold compared to the 36.5c it was fetching this time last year before a transition from messaging to its Spacetalk kids smartwatch.
Spacetalk, designed by Adelaide-based MGM, allows two-way mobile communication and GPS tracking between parents and children while limiting access to social media and the Internet.
It links up to a smartphone app called AllMyTribe which allows parents to control who their children contact and track where they are.
It also features a text messaging service, step-counter and a ‘Safe Zone’ that notifies parents if their children have left a designated area such as school or home.
MGM Wireless chief Mark Fortunatow said it was a significant company milestone.
“We’re tremendously excited to add our first international mobile network operator to our growing network of bricks and mortar distributors,” he told investors.
“Further we see it as a huge endorsement by a leading international telco of the calibre of Spark. Thanks to Spark, New Zealand parents will now be able to go to any of their 73 stores across NZ to look, touch and feel our revolutionary kids watch and GPS wearable device.”
MGM says it “continues to receive significant interest” from other distributors and mobile carriers around the world.