London-listed Starcom (AIM:STAR) unveiled on Wednesday a new agreement with US provider of shipping related services, CubeMonk.
The Internet-Of-Things specialist has been working with the provider over the past year to adapt and implement its Kylos Air technology, a system designed for tracking air cargo, for its use in CubeMonk's shipping solutions.
The supply and support agreement will cover three years of the adapted Kylos Air units for use as part of CubeMonk's tracking service for air containers, the statement explained.
In the year ended 31 December 2019, Starcom received orders totalling $0.2 million from CubeMonk.
The deal follows a successful trial phase which saw a few hundred Kylos Air units were integrated within CubeMonk containers – this was completed in 2019 and received ‘very positive’ feedback.
Shares in Starcom were trading 8.70% higher at 1.25p during Wednesday trading.
"Following the successful trial, we are proud to have reached this important milestone in our relationship with CubeMonk in the USA,” said Avi Hartmann, CEO of Starcom.
The statement added that the agreement did not contain any minimum purchase commitments on the part of CubeMonk.
Hartmann said the contract represented a significant opportunity for Starcom to expand its OEM strategic partnerships which would further extend opportunities across the shipping and container tracking industry.
This morning’s news follows the group’s announcement on Monday that it had expanded an existing deal with US electric motorbike manufacturer, Zero Motorbikes.
Starcom expects to announce its audited results for the year ended 31 December 2019 in early March 2020 it noted in a recent trading update.
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