Portlogic Systems Inc. (OTCMKTS:PGSY)
Shares of Portlogic Systems Inc. (OTCMKTS:PGSY) shot up in the last session as the market continued to react positively to the news that the company had entered into a strategic partnership with a firm that previously employed its current chief technology officer.
The stock rose more than 17.6% to close at $0.16 after trading between a low of $0.14 and a high of $0.16 during the day. A larger-than-usual stock volume also changed hands in the last session. Nearly 5.2 million shares were traded, significantly higher than the daily average volume of about 1.5 million over the last several months.
Shares of Portlogic Systems Inc. (OTCMKTS:PGSY) have gained more than 172% since the beginning of the year and have climbed 257.9% over the last year.
The update that moved the stock
In a press release, Portlogic Systems Inc. (OTCMKTS:PGSY) announced that it had entered into a partnership with Mobicloud Technologies, a company that describes itself as a global interactive software developer.
Portlogic has tapped Mobicloud Technologies to provide IT consulting and help with the development of mobile apps as well as unspecified VoIP products. Mobicloud’s contractual scope includes providing a broad range of cloud-based, end-to-end solutions to Portlogic customers.
Portlogic Systems Inc. (OTCMKTS:PGSY) itself is focused on providing mobile apps, including marketing apps, and telecom solutions. Its customers include enterprises. Therefore, the deal with Mobicloud seems to be aimed at bolstering its position in the sector of mobile communication as it seeks to take advantage of the global proliferation of smartphones.
Financial terms kept under wraps
The financial terms of the agreement weren’t disclosed, but Portlogic Systems Inc. (OTCMKTS:PGSY) pointed out that its current CTO, Meeta Litake, previously worked for Mobicloud.
Of note is that the deal seems to have come soon after PGSY appointed Litake to the CTO position. Litake, who has 18 years of academic and corporate experience in engineering and computer science as well as startup consulting, was made CTO on July 18. In that position, Litake’s roles include developing Portlogic’s technology strategy.
Litake commented on Portlogic Systems Inc. (OTCMKTS:PGSY)’s deal with Mobicloud, saying the arrangement would help Portlogic in building its customer base.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.