The Audio Pixels Holdings Ltd (ASX: AKP) share price has returned from its trading halt and is shooting higher.
In afternoon trade, the Israel-based digital speaker developer's shares are up a massive 32% to $25.10.
Why is the Audio Pixels share price shooting higher?
The catalyst for the rise in the Audio Pixels share price on Friday has been the release of an announcement relating to its long-developed digital loudspeaker products.
According to the release, the company has signed a comprehensive agreement with Earth Mountain (Shanghai) Intelligent Technology to mass produce Audio Pixels' transformational digital loudspeaker products.
While details on Earth Mountain (Shanghai) Intelligent Technology are very limited on the internet, the release explains that it is a full-service semiconductor company with a focus on the mass commercialisation of devices and systems rooted in Micro Electrical Mechanical Systems (MEMS).
A search also shows that Earth Mountain was founded by representatives of Israel-based ORAD Ltd, which specialises in solutions for complex technology multidisciplinary projects in security and in perimeter protection.
The agreement
The agreement sees Earth Mountain guarantee Audio Pixels with a long-term resilient supply of tens of millions of digital loudspeaker chips per year from the first quarter of 2022. Though, it is important to note that this is not a sales order but merely the promise of supply if sales are made.
Former poker play and current Audio Pixel's Chairman, Fred Bart, commented: "This agreement with EM represents a major milestone toward the commercialization of our technologies is all the more valuable given that it comes at a time when industry at large is struggling to secure semiconductor fabrication capacity. Our collaboration with EM enables us to expedite and broaden the number of customers and applications for our ground-breaking technologies"
Earth Mountain's CEO, Helen Du, said: "We are excited to be a part of Audio Pixels' international ambitions to transition sound reproduction technologies into the digital era. We hope to expand our relationship in AKP beyond this fabrication and commercialization agreement to include promotion, distribution and support for the products throughout greater China."
