Indoor playground designer and manufacturer Iplayco Corp. (TSX-V:IPC) rang-up a new 52-week high Wednesday morning after announcing new sales agreements that equal more than one-third of the Langley, British Columbia-based company's market capitalization.
Iplayco said that it has inked contracts with five customers - located in the United States, United Arab Emirates, the Netherlands and Sweden - for large indoor playgrounds that will generate $5.22 million in revenue.
Three of the playground sales, one in Sweden and two in the Netherlands, were the direct result of Iplayco's European expansion initiated last October through the acquisition of local brands and other assets in the bloc. Those thee sales have a value of $3.35 million.
Work is expected to commence on all the projects this quarter, with a substantial portion of the revenues anticipated to be realized at the start of the company's new fiscal year in October.
"We want an order book that is diversified in terms both of order size and jurisdiction, and that is what we see in current confirmed orders as well as what we have in our sales pipeline," said Iplayco CEO and President Scott Forbes in today's statement.
At 70 cents per share and 20.87 million shares outstanding, Iplayco has a market cap of $14.61 million. The number of outstanding shares is about to be chopped in half following an agreement with FAS Entertainment B.C. Ltd., Saudi FAS Holding Company, and Billy Games Company Ltd. to buy back 10,650,000 of Iplayco's common shares.
When the transaction is completed, there will be 10.22 million shares of IPC issued and outstanding.
Generally a thinly-traded stock, only about 10,700 shares have traded on Wednesday with about 90 minutes left in the session. As recent as June, shares dipped under 40 cents before beginning a climb that has brought shares to a new one-year high at 76 cents this morning, before slipping back to even on the day at 70 cents.
