Cool Holdings Inc (NASDAQ: AWSM) is trading in the green early on this morning, up just over 3%. The gains come after the company announced that its newly-acquired subsidiary has entered into a new partnership agreement. Here’s what’s going on:
AWSM Stock Heads For The Top On Partnership Agreement
Cool Holdings issued a press release this morning announcing that it has entered into a new partnership agreement, valued at around $3.15 million. The partnership agreement was signed between the company’s newly-acquired subsidiary, Simply Mac and Ideas & Cars, a wholly-owned subsidiary of Torque.
AWSM said that under the 3-year partnership, Simply Mac will be named the sole and exclusive supplier of Apple products to Ideas & Cars. Simply Mac will also serve as a sponsor for “America’s Fastest Gamer” events produced by Ideas & Cars.
In the release, the company said that it will sponsor #GamerToRacer finals. It will also open many of its stores to host qualifying and registration for the competitions.
The company also said that the winner of Simply Mac World’s Fastest Gamer will earn a full-time GT race drive for 2020, valued at more than $1 million. They will also receive a new MacBook Pro, iPhone 11 Pro Max and an Apple Watch Series 5.
Simpy Mac will also equip the World’s Fastest Gamer video production and social media teams with iPhone 11 Pros to film daily updates for distribution across the @TheWFGamer social media channels.
In a statement, Rein Voigt, president and CEO at AWSM, had the following to offer:
The team at Simply Mac loves the concept of World’s Fastest Gamer, and we’re looking forward to working with the team to provide some incredible content for the fans. Gaming accessories are a hugely popular item across the country, and we think World’s Fastest Gamer is a brilliant vehicle for us to reach the gaming audience.
Apple is raising the bar for mobile gaming with the recent introduction Apple Arcade. We wish all the gamers the very best of luck in the finals, although we might have to give Riley an extra cheer after qualifying via Gear.Club on his iPad.
Why Investors Are So Excited
Ultimately, there are several reasons to be excited here. First and foremost, the partnership has the potential to drive more than $3 million in revenue through the company’s doors. Considering that Cool Holdings trades with a market cap of around $3 million, this is signifcant.
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