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Mobi724 (TSXV:MOS) shares skyrocket on CGI (TSX:GIB.A) agreement

Technology
TSX:MOBIF
10 September 2020 13:28 (EDT)
MOBI724 Global Solutions - CEO, Marcel Vienneau

Source: CPA Canada

Mobi724 Global Solutions (MOS) shares have spiked after its subsidiary, Mobi724 Smart Transactions, entered into a sub-contracting agreement.

The agreement is with Conseillers en gestion et informatique CGI Inc, which is in itself a subsidiary of CGI Inc (GIB.A). CGI is one of the largest independent IT and business consulting services companies on the planet.

Under the agreement, Mobi724 Smart Technologies will provide CGI with some of its processing platform solutions. This is for a custom development initiative, which has been commissioned from CGI by an unnamed third party.

Earlier today, CGI also announced an extension of its contract with the City of Edinburgh Council, although it is unclear if these two arrangements are related or not.

The two parties have already come to an agreement regarding the fees which Mobi724 Smart will receive for customising its solutions for the project. Based on the project’s initial scope, Mobi724 Smart expects that it will complete the work within 24 months. 

Mobi724 Global’s CEO, Marcel Vienneau, commented on the sub-contracting agreement which Mobi724 Smart has entered with CGI and its subsidiary. 

“We are very proud that both our transactional data processing platform and the expertise of our IT team meet the demanding standards that are required for a project of this nature.

“We are very excited to commercialise Mobi724’s market offering alongside such an industry leader,” he said. 

Mobi724 Global Solutions (MOS) is up a whopping 120 per cent and is trading at 5.5 cents per share, as of 12:05pm EDT.

In stark contrast, CGI is down 1.47 per cent and is trading at C$91.77 per share at 12:16pm EDT.

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