Why the Parkd (ASX:PKD) share price is soaring 78% today

The company is having a bumper day on the ASX on Tuesday.

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The Parkd Ltd (ASX: PKD) share price is racing past most ASX shares today with its emphatic rise. This comes after the construction technology company announced two important updates to the market on Tuesday morning.

At the time of writing, Parkd shares are swapping hands for 6.6 cents, up an astonishing 78.38%.

What did Parkd announce?

Investors are fighting to get a hold of Parkd shares following the company's update on its opportunities in the car parks market.

In its first release, Parkd advised it has signed a memorandum of understanding (MOU) with the University of South Australia.

The framework enables Parkd to undertake a 90-day due diligence process to assess the feasibility to develop a multi-storey car park. The development opportunity is being considered at the University's Adelaide central business district (CBD) site.

The terms of the MOU offer an exclusive 3-month period for Parkd to explore and evaluate the project's economic viability.

In addition to that announcement, Parkd also provided a second release to the ASX. The company stated it has signed a binding heads of agreement (HOA) with Axiom Properties Ltd (ASX: AXI).

The HOA will see both parties seek opportunities within Australia for developing and constructing car parks in the private and public sectors.

During the 18-month term of the HOA, the partnership aims to use Axiom's experience in funding property development. Furthermore, Parkd will employ its knowledge in delivering technical design and construction solutions.

Any awarded contracts are to be negotiated between the pair and will involve entering a formal agreement governing the project at hand.

Parkd chair Bronte Howson commented:

This partnership presents an exciting opportunity for PARKD to provide an alternate funding solution to traditional capital expenditure. Providing fully funded projects via AXIOM would be a game changer and will provide the impetus for PARKD to realise opportunities that are currently impeded by lack of available funding.

Parkd share price summary

Founded in 2016, Parkd designs lightweight concrete modular car parking systems. The company focuses on supplying and building multi-storey car parks for an array of retail centres, hospitals, airports, universities, and more.

In the past 12 months, the Parkd share price has stormed 230% higher, with year-to-date returns up 65%. The company's shares reached a high of 8.5 cents in April 2021.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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