Anoto Gains on Distribution Agreement in China: Stockholm MoverJanina Pfalzer
Anoto Group AB gained the most in more than seven months in Stockholm after the Swedish maker of pens that translate writing into a digital format signed a distribution agreement in China that also involves an order.
The shares rose as much as 29 percent, the biggest intraday gain since Feb. 1. Anoto, whose stock has lost about half of its value this year, increased 17 percent to 0.89 krona as of 1:53 p.m. in Stockholm. The company led the gainers in the OMX Stockholm All Share index.
Anoto, based in Lund, signed a two-year, exclusive distribution agreement with TStudy China Co Ltd., the Swedish company said today in a statement. The agreement will be reviewed after two years. TStudy develops interactive solutions for the education industry and has already won an order from China Publishing Group for the use of Anoto’s products.
“China Publishing Group is the largest publisher in China and they intend to use digital pens to develop Chinese character writing and testing programs,” Anoto said in the statement. The agreement is for 100,000 pens over three years, Anoto said.
Anoto said on Sept. 6 it had secured a $2 million, short-term credit facility with Ewig Industries Macao Commercial Offshore Ltd. The loan is secured against product inventory and patents. If it hasn’t been fully repaid by Dec. 31, the lender may convert the outstanding amount to Anoto shares.