Shares in The Barkby Group PLC (AIM:BARK) rocketed 92% following an announcement that its subsidiary, Cambridge Sleep Sciences (CSS), has landed a significant licensing deal.
CSS has granted Sleep Sense International a five-year global licence to manufacture a Smart Pillow using CSS's SleepEngine platform. The deal gives Sleep Sense exclusive rights in the pillow market, provided they order a minimum of 25,000 units in the first year and 60,000 in the second.
CSS expects to rake in royalty payments amounting to £1.25mln in the first year, rising to £3.0mln in the second.
Dr Julian Stone, CEO of CSS, heralded the deal as a pivotal move towards a software-as-a-service business model and anticipates similar agreements in the future.
In the first hour of trade, the shares were up 3.03p at 6.33p.