Shares in junior technology company Stakk Ltd (ASX: SKK) rocketed almost 40% in early trade after it announced that the US Federal Bureau of Investigation would be using its signature verification technology.
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Recent deal already paying dividends
Stakk recently merged with US company Parascript, which pushed its valuation past the $100 million mark,
The company said in a statement to the ASX on Tuesday that Parascript had been engaged to provide signature verification capabilities for the FBI.
The company added:
Stakk's technology supports the assessment of physical signatures where authenticity or potential fraud is in question. The first phase of the FBI deployment is fully live. Work is now under way on a second phase that will add capabilities to locate and prepare reference signatures for the verification process.
Stakk said the commercial terms of the agreement were confidential, but it was expected to contribute meaningfully to the company's FY27 revenue target, which is now expected to surpass $55 million.
The initial agreement runs until December 2027 and may auto-renew for subsequent 12-month terms thereafter.
The company said the agreement was a strong endorsement of its technology.
The engagement also establishes a live Law Enforcement deployment of Stakk's technology. It demonstrates the relevance of the Group's capabilities in a sector where the authenticity of signatures and documents can be critical and provides a foundation for Stakk to pursue further Law Enforcement opportunities. The need to establish authenticity extends across financial services, healthcare, insurance, telecommunications, and government. As AI-powered fraud grows more sophisticated, Stakk expects demand for these capabilities to increase. The Company sees opportunities with state and federal Law Enforcement agencies across the United States, as well as with agencies internationally.
Stakk Director Arthur Lo said the Parascript acquisition was already proving its worth, with the company providing services that were in demand across financial services, healthcare, government, law enforcement, and other regulated sectors.
He added:
As fraud grows more sophisticated, we see a substantial opportunity to bring these solutions to agencies in the United States and internationally. This engagement is a powerful example of why we recently brought the two businesses together.
Share price taking off
Stakk shares traded as high as 2.5 cents before settling back to be changing hands for 2.4 cents, up 33.3%.
The company was valued at $114.8 million at the close of trade on Monday.
Stakk said late last month that its $55 million revenue target for FY27 was already secured through recurring revenue under existing contracts.
