Bulletin board favourite Fitbug (FITB:AIM) has won another raft of major retail deals, sending shares at the wearable fitness technology company surging 43% to 10p.
The £11.8 million micro cap has confirmed that US online consumer electronics retailer Best Buy (BBY:NYSE) has agreed to sell its Orb wearable device and Kiqplan digital health coaching platform from January 2015. Encouragingly, the UK arm of online retail giant Amazon (AMZN:NDQ) and US supermarkets group Target (TGT:NYSE) have also both confirmed plans to expand their range of Fitbug products to include Kiqplan, with marketing plans drawn up for early in the New Year.
Fitbug's technology is designed to help people improve their health and lifestyles by making changes to their daily routines. The shares have experienced a dramatic rally in recent months after hitting lows of 0.4p earlier this year, having struggled to turn its promises into hard cash and profits.
But that changed dramatically in October, the stock soaring an incredible 5,272% in a month, after it announced deals with UK supermarket Sainsbury’s (SBRY), Target and electronics giant Samsung (005930:KS).
But investors need to tread carefully, as Shares pointed out recently. There are no forecasts in the market, sales remain tiny (just £914,000 in the first half to June) while the business burned through £1.64 million in the same half-year period. This makes valuing the business almost impossible. However, the company did manage to raise fresh working capital funding earlier this month (9 Dec), tapping investors for £3.5 million aimed at accelerating growth. Time will tell whether this will be enough.