The PlaySide Studios Ltd (ASX: PLY) share price will be one to watch this week.
This morning the company announced a major agreement and a trading halt.
Why could the PlaySide share price zoom higher?
The PlaySide share price could be on the move later this week after it announced a landmark agreement.
According to the release, the company has signed an early eight-figure (Australian dollars) work-for-hire development agreement with 2K Games. It is a label of leading global publisher Take-Two Interactive Software (NASDAQ: TTWO), which is best-known as the company behind the Grand Theft Auto series.
The release explains that the agreement relates to the production of a forthcoming major franchise. The project will have a development cycle of 23 months, with 12 months of maintenance post launch. The deal is fixed price milestone based without revenue share.
Management advised that developing a strong relationship with 2K Games through quality delivery and partnering is seen as a long term strategic benefit to Playside. It also believes it furthers the company's credentials as a global player in the marketplace.
Management commentary
PlaySide's CEO, Gerry Sakkas, said: "This is an extremely pleasing outcome for PlaySide, representing the largest work for hire contract since listing. We are excited to be working with 2K Games, a label from one of the world's largest Publishers, TakeTwo Interactive Software."
"Our ability to secure this agreement with 2K Games underlines our position as Australia's largest publicly listed game developer. We are looking forward to starting work on this project to demonstrate our capabilities in AAA game development on a franchise that we are extremely passionate about."
Mr Sakkas believes the success of its Age of Darkness: Final Stand game has been the driving force of the deal.
"This deal is reflective of the quality of Age of Darkness: Final Stand which has been the catalyst for companies like 2K Games to recognise the Company's world class development capabilities," he added.
Trading halt
The PlaySide share price won't be going anywhere immediately, though. This morning the company requested a trading halt.
Its request explains: "The trading halt is requested until the earlier of: PlaySide releasing announcements to the market regarding a material transaction and a proposed capital raise; and the commencement of trade on Wednesday, 17 November 2021."
No details further details have been provided.
The PlaySide share price has almost doubled in value in 2021.
