19th Dec 2019 09:51
(Alliance News) - Bidstack Group PLC on Thursday said it has entered a two-year trading agreement with an undisclosed global marketing group, giving Bidstack shares a big boost.
The stock was up 45% early Thursday in London at 11.25 pence per share in London. Bidstack
Bidstack shares had dropped by 35% on Wednesday after the in-video-game advertising firm said it would not meet revenue targets for 2019 due to commitment delays.
Bidstack said Thursday the new agreement will start on January 1 and calls for GBP10 million per year in gross media expenditure.
Under the terms of the agreement, Bidstack's in-game advertising platform will be made available to the unnamed marketing group's advertising clients.
Chief Executive James Draper commented: "This is a huge milestone for us as a business. This trade deal is a real show of faith from the advertising industry that we serve. On one hand, we are disappointed that none of this revenue will now be recognisable in 2019, but, on the other, this sets the company up well for 2020 and beyond."
Following the share rout on Wednesday, the company added Thursday: "The board believes this agreement will give Bidstack's stakeholders increased confidence in the value of Bidstack's potential and will provide a persuasive rationale for some of the world's biggest games developers and publishers, with whom the company is currently negotiating, to accelerate their adoption of its technology."
By Ife Taiwo; [email protected]
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