The Elsight Ltd (ASX: ELS) share price has soared a massive 65% today, after the company announced it had received a material order from the United States (US) market as a result of a strategic partnership.
Elsight develops advanced communication technologies for real-time data, video and audio transmission over cellular networks in mission-critical environments.
What did the company announce?
Elsight and the US-based Kinetx Prime reached an in principle distribution agreement for an initial order commitment of US$1.6 million (A$2.3 million). The partnership is a result of Elsight securing US Federal Communications Commission (FCC) certification, as announced earlier this month.
Its strategic partnership with Kinetx Prime will enable direct-to-consumer telehealth services in the US with Elsight’s flagship Halo product.
The coronavirus pandemic and the resulting demand for telehealth services has created a substantial market opportunity for Elsight. This is as a result of patients with existing chronic or new conditions being scared or unable to get the normal healthcare they need.
Kinetx Prime focuses on the application of technology solutions using private and public cellular networks to enhance the connectivity of rural and urban communities. The goal is to improve remote healthcare, which is the only alternative for people without access to a hospital or clinic.
This deal represents the first time Halo will be mass distributed in the business-to-consumer market in North America.
The company has advised it is also exploring further opportunities in various industry segments with prospective technology company partners.
Management commentary
Commenting on the partnership agreement, Nir Gabay, founder and CEO of Elsight said, “We are delighted to have partnered with a company that shares our vision and to be able to bring about positive change during a time of crisis and pain…”
Founder and CEO Joe Page of Kintetx added:
Kinetx Prime will drive growth of Elsight Halo product into U.S markets to provide much needed wireless connectivity service to underserved communities…Using the Halo product, Kinetx conducted a successful Telehealth trial with a regional university school of medicine to allow them to connect beyond their traditional network reach.
About the Elsight share price
The Elsight share price has soared 63.33% today following the strategic partnership announcement. As a result, the Elsight share price is currently trading at 49 cents per share, which is 38.03% up on this time last year.
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Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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