Shladot Metal Works Ltd. (TASE:SLAD) rose strongly today - 19.3% at the peak - after the company announced that its subsidiary, Qray Ltd., had signed its first distribution agreement in North America. Shladot owns 87% of Qray.
Qray, which uses visible light therapy to treat chronic wounds, has signed an memorandum of understanding with a Canadian distributor for the company's Vireo product. Qray will arrange the regulatory permits and registration procedures for selling the Vireo product in Canada, after which the distributor will begin marketing.
Shladot said that the agreement was Qray's first agreement outside Europe.
Shladot's core business is metals and mechanics, and the company has not yet recorded any revenue from Qray.
Shladot's share price rose 6.4% today to NIS 5.35, giving a market cap of NIS 28 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2010
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