Joint ventures are often seen as a way in which companies can quickly diversify their revenue streams and are often seen as a positive.
Hence, it did not come as a surprise when the Max Sound Corp (OTC: MAXD) stock soared by a staggering 123% after the company announced that it signed a joint venture agreement. The company announced that it is going to set up a new joint venture with TIP Solutions and bring about a synthesis of its patented audio product with TIP’s call management platform. Under the provisions of the joint venture, the Max Sound Corp’s MAX-D’s HD Audio has been licensed by TIP. As per the announcement, TIP has paid Max Sound an upfront fee that goes into six figures.
In addition to that, Max also stands to earn through royalties and fees in the years to come. The fees and royalties could go up to seven figures. It is a major development for Max Sound and it remains to be seen whether the stock can further add to its gains today.