Guess which ASX microcap stock just rocketed 109% on a new deal!

Investors are sending the ASX microcap stock soaring on Thursday. But why?

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A little-known ASX microcap stock is setting the bar high today even as the All Ordinaries Index (ASX: XAO) wallows in the red.

Shares in the company, which specialises in developing innovative films and coatings, closed Monday trading for 2.2 cents. The stock entered a trading halt on Tuesday at the company's request, pending today's announcement.

That announcement was released this morning and has clearly stoked investor interest.

Earlier today, shares in the ASX microcap stock were swapping hands for 4.6 cents apiece, up an eye-watering 109.1%.

After some likely profit-taking, shares are trading for 3.7 cents at the time of writing, still up an impressive 68.2%.

Any guesses?

If you said Nanoveu Ltd (ASX: NVU), give yourself a virtual gold star.

Here's what's got investors excited.

ASX microcap stock lifts off on binding agreement

The Nanoveu share price is going ballistic after the company reported it has signed a binding heads of agreement (HOA) with Rahum Nanotech.

The HOA replaces the non-binding memorandum of understanding the ASX microcap stock signed with the South Korean company back in November for exclusive distribution rights for Nanoveu's EyeFly3D in South Korea.

EyeFly3D is a film and software combination that allows users to experience 3D on everyday mobile handheld devices and other digital displays without requiring glasses.

Nanoveu has granted Rahum Nanotech exclusive distribution rights in South Korea. The company reported that minimum orders totalling US$19.73 million (AU$29.64 million) by 31 December 2026 will be required to maintain that exclusivity.

Subject to Rahum Nanotech meeting those minimum purchase requirements, the companies could mutually agree to extend the exclusivity.

The ASX microcap stock said it has received an initial cash deposit of US$70,000 from an initial order of US$372,000, which includes app development reimbursement. The company will supply 28,000 EyeFly3D screens for Android and Apple iPhones from this initial order.

What did management say?

Commenting on the binding agreement sending the ASX microcap soaring today, Nanoveu CEO Alfred Chong said:

Following signing the non-binding MOU in November last year, Nanoveu and Rahum Nanotech have progressed significantly in software development and evaluation of the South Korean market potential for Nanoveu's EyeFly3D products…

The HOA includes targeted future minimum purchase orders for many more EyeFly3D™ screens, which will be suitable for a wide range of Android and Apple iPhones, with screens for tablets also being developed.

Lee Myeong Hoon, president of Rahum Nanotech, looks to have further stoked investor interest in the growth prospects of this ASX microcap stock.

"We've chosen the EyeFly3D technology for its unparalleled clarity and breathtaking immersive experience," Hoon said.

He added, "With the vast potential we foresee in South Korea and the promising opportunities we've uncovered, we stand firm in our confidence to not only meet but surpass our targets ahead."

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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