The Vection Technologies Ltd (ASX: VR1) share price has rocketed up today on news the software company has signed a deal for its software program, Trainer Creator.
At the time of writing, the Vection share price has lifted 8.7% to an intraday high of 12.5 cents.
What's the deal?
Vection announced it has made a pilot agreement with agri-food processing leader, Mutti SpA for its augmented reality (AR) program, Trainer Creator.
Mutti is a famous Italian tomato brand. Established in 1899, the company generated global revenue of €378 million (close to A$610 million) for 2019.
Vection's software program Trainer Creator – launched in June 2020 – enables machine operators and technicians to visualise tasks in AR through wearable technology or a smart device. This in turn allows a company to create real world operational efficiencies and cost savings.
In today's release, Vection advised it has entered an initial arrangement that will see Trainer Creator implemented within the first of 40 production lines operated by Mutti.
The deal, valued at around $50,000, represents a first-time use of Trainer Creator by an agri-food company. Should the rollout be successful, it is expected that this will create further commercial opportunities for Vection.
What did the managing director say?
Vection managing director Gianmarco Biagi welcomed the agreement, saying:
During the last 6 months, we have been experiencing a strong market interest for our augmented reality solutions and products, since the launch of Trainer Creator.
Mutti represents a key client in a new vertical and a strong opportunity for further growth for the company, leading into 2021.
Vection share price snapshot
The Vection share price has accelerated over the past 12 months, gaining more than 400% for shareholders. Most surprisingly, while COVID-19 wreaked havoc on the ASX market, Vection barely fell, dipping to 1.5 cents in the March lows. The Vection share price was recorded at 2 cents the month prior.
The company has a market capitalisation of $115.9 million on current prices.
