CardioComm Solutions Inc. (CVE:EKG) (PINK:EKGGF) got some more value to their stock after the company made a deal with a major electronics maker.
EKG stormed up 45.5% on Friday. The associated trading volume wasn’t the most impressive for such a move, but still the 13.8 million shares traded were way above the average of 2.1 million. As a result, the stock
was listed among the most active stocks on the Toronto Venture Exchange.
The trading activity increased after the company said on February 10 they signed a five year renewable software license and services agreement with Royal Philips Electronics. This will allow CardioComm to integrate their GEMS software into Philips’ ECG management services.
The financial terms were not publicly disclosed, but it is obvious that CardioComm got a chance to penetrate the market for their product in a much more effective way than simple marketing. Philips is one of the world’s largest technology companies with more than a quarter of their business concentrated in the health care market. This means large numbers of customers and CardioComm hopefully can get to them as well.
Just a while ago CardioComm’s share price was stuck in consolidation, thus the news really packed a punch here. The problem is that the potential financial impact of this deal was kept a secret. That could prohibit a further price rally because the stock was already at its limits before the big push.
