Pareteum Corp (NYSEAMERICAN: TEUM) is having an overwhelmingly strong day in the market today after the company announced that it has entered into a new agreement which should create accelerated growth. Today, we’ll talk about that agreement, how the stock reacted to the news, and what we’ll be watching for with regard to TEUM ahead.
TEUM Gains On Strategic Alliance Agreement
As mentioned above, Pareteum is having an incredibly strong start to the trading session this morning after the company announced that it has teamed up with Artilium plc. The strategic alliance is focused around pursuing new and developed markets, creating accelerated growth and market penetration for both companies.
As a part of this agreement, TEUM announced that it has been awarded a 3-year contract to provide its Communications Platform as a Service to a Mobile Virtual Network Operator. The MVNO is focused on cross-border mobile services in both China and North America. Under the terms of the agreement, TEUM will be receiving 100% of the revenues from the contract, which are expected to add more than $1 million to the company’s 36-month contractual revenue backlog.
According to the agreement, TEUM will provide its Global Mobility Cloud Platform to empower customer service to better address the needs of subscribers with connections in both China and North America. This includes services such as messaging and data, and it is expected that the agreement will expand into other offerings in the future. In a statement, Vic Bozzo, CEO at Pareteum, had the following to offer:
“Through this contract, we are enabling our new customer’s China-based subscribers to connect and transact on their mobile devices anywhere in the world. Pareteum is powering this new customer to expand its subscriber revenues through global connectivity and data, without the need for investment in infrastructure or software.”
How The Stock Is Reacting To The News
One of the first things that we learn when we delve into the market is that the news causes movement. Well, that’s exactly what we’re seeing from TEUM today. With the positive news and expected revenue growth, investors are excited, sending the stock toward the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:10), TEUM is trading at $1.27 per share after a gain of $0.11 per share (9.48%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TEUM. In particular, we’re interested in following the company to see the revenue resulting from this contract. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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