Shares in Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) jumped 11% after it inked an exclusive collaboration deal with Magna International (TSX:MG), the Canadian auto parts maker, which brings with it US$65mln of investment.
The pair have agreed to jointly develop and co-market a driver and occupant monitoring system based on Seeing Machines’ AI-based eye-tracking technology.
The investment comes in the form of a US$17.5mln exclusivity payment with up to a further US$47.5mln via a convertible loan note.
The shares advanced 0.64p to 6.44p on the news, which City broker Cenkos called a "game changer" for the business, "demonstrating the great value a major industry player sees in the company’s technology".
“We view this deal as a poignant marker on what is likely to be a steep trajectory over the next few years to Seeing Machines becoming a multi-billion dollar technology company,” investors were told.
Cenkos also said concerns over the balance sheet had been allayed as it upped its price target to 25p a share from 20p.