Shares in Moko Social Media have soared after the company struck a deal to promote its smartphone app to students at more than 600 colleges in the United States.
Moko has signed a mobile rights agreement with a US sports website that manages college sport, a deal that could grow the audience for its REC.IT app to about 10 million students.
REC.IT will allow students to register for team activities and check schedules, scores and individual performances.
Moko will use the mobile platform to sell advertising to sponsors and businesses seeking exposure to the US college student market.
Moko chief executive Ian Rodwell said the new deal could give access to about half of the total US college student population, which is a very attractive demographic for advertisers.
The company's shares gained 3.5 cents, or 29.2 per cent, to 15.5 cents on Monday.
The revenue to be generated by REC.IT will depend on how fast the app is deployed and the amount of advertising it attracts, Moko said.
As part of the expansion, Moko will issue about 36 million new shares to selected investors to raise up to $4 million.
It is also seeking to list on Wall Street's Nasdaq.
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