Megola Inc (OTC:MGON) shares more than doubled on Thursday following the company which sells physical water treatment devices, announced to license the manufacturing of Fire Inhibitor Coating (FIC) to High Point Enterprises Co Ltd.
Late Wednesday, the company issued a press release stating that it has reached Memorandum of Understanding (MOU) with High Point Enterprises Co Ltd, under which the later will have the license to manufacture and distribute the company’s Fire Inhibitor Coating (FIC).
The said agreement would allow the company to increased its presence in the Asian countries efficiently. Both the companies have made several conditions before reaching the deal.
For the nine-month ended April 30, 2011, the company has loss of about $173K, with total shareholders accumulated deficit of over $8 million.
For the quarter ended April 30, 2011, the company had reported sharp fall in its revenue of 95.66% year-over-year to $605 as one the company’s distributors decided to quit the company, from $13,929, a year ago.
Megola was formed to sell physical water treatment devices to commercial end-users in the United States, Canada and other international locations under a license granted by the German manufacturer, Megola GmbH. Initial operations and sales began in October 2000.
Shares of MGON soared more than 100% to $0.0063 on hefty volume of 7.54 million shares – 27X times its average volume.
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