Cybeats Jumps 67% On Signing Of One Year Contract With European Telecom Giant

Cybeats Technology (CSE: CYBT) is a major market mover this morning, jumping as much as 105% before trading down to a current 67% gain.

The jump follows the company revealing it entered into an agreement last month with a European telecom giant. The undisclosed party is said to be a “top 3 European telecom leader” with a market cap of roughly $30 billion. The agreement is said to be a one year contract that was entered into on March 15 for its SBOM Studio product.

Short for Software Bill of Materials, the tech is geared towards assisting companies with complying with new cybersecurity requirements in the EU. The requirements come as a result of the EU Cyber Resilience Act, which was agreed upon by the EU in November of last year.

The requirements outline that manufacturers, reps, importers and distributors of products that contain a digital component must conduct a risk assessment, conduct continuous monitoring and provide free updates of cybersecurity aspects of the product, report any vulnerabilities, and provide transparency in technical documentation and user instructions. Product manufacturers will be required to provide much of the monitoring of such compliance efforts, while importers and distributors will be required to ensure manufacturers are in compliance of such measures.

Failure to comply with the measures could result in fines of up to 2.5% of gross sales of E$15 million – meaning companies are very much incentivized to comply with the new requirements.

Screenshot of the SBOM Studio product.

The SBOM Studio product reportedly works to assist a company in meeting these requirements by conducting a continuous security risk assessment, supply chain screening, software license analysis, and assessing vulnerabilities that vendors have been subjected to.

As for the arrangement with the undisclosed telecom leader, it is suspected that Orange France is the party on the other end of the agreement, whom in 2023 generated E$44.1 billion in revenue, with net income of E$2.9 billion.

“Engaging a global leader in the telecom sector is a significant step in our commercial journey. When building SBOM Studio, Cybeats ensured the product was industry agnostic, allowing for a diverse customer base and scalable reach, especially in high potential verticals fueled by regulation,” commented CEO Justin Leger.

Financial details of the arrangement however were not provided, despite the enthusiasm seen in public markets.

Cybeats last traded at $0.31 on the CSE.

Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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