Vyke Communications (AIM: VYKE) announced the agreement of a large scale distribution deal with Steen Group LLC to expand the Vyke product suite across Latin and South America. The deal is based on a margin sharing arrangement between the parties. Investors have welcomed this latest development, shares in Vyke surged 25% this morning.
Vyke Communications plc is a Voice over Internet Protocol ("VoIP") service provider with a focus on mobile applications. The Vyke suite of Internet Protocol (IP) enables end user services provides an operator independent, low cost calling and messaging service.
Steen Group is a large scale distributor of mobile handset and mobile related accessories with direct access resellers in Latin and South America. It has an extensive network of existing business partners in the region and Vyke will leverage this strong sales channel to enable rapid expansion across the region.
Vyke CEO, Kim Berknov commented on the expansion the distribution deal provides;
"This agreement provides us with a unique opportunity to strengthen our distribution network in Latin America, and I am confident that it will accelerate the take up of our leading range of mobile VoIP products. It also underlines our focus on getting access to new and growing markets".
Today’s news follows Vyke’s recently strong performance which has seen the share price progress more than 30% after the VOIP communications provider executed a successful financing. Earlier this week, Vyke Communications said it secured a £10 million equity credit line over the next three years from UK based private investment group GEM Global Yield Fund. GEM is a US$2.7 billion alternative investment group that manages a diverse set of investments vehicles across the world.