NEW YORK (AP) -- Shares of Towerstream Corp. jumped to a fresh 52-week high on Monday as the 4G service provider disclosed that it signed a Wi-Fi deal.
THE SPARK: Towerstream said in a filing with the Securities and Exchange Commission on Friday that its Wi-Fi agreement was with a national wireless carrier, but did not reveal the name of the company. A representative for Towerstream said that the Middletown, R.I., company was not disclosing further details about the agreement at this time.
BACKGROUND: Towerstream provides high-speed internet access to companies in more than 12 markets, including New York, Boston, Chicago and Los Angeles. Last month Towerstream reported that its fourth-quarter loss widened on higher expenses as revenue increased 31 percent.
Towerstream's rooftop installations on more than 4,000 buildings are used to provide wireless broadband connections for businesses, which the company now believes may be able to be used for Wi-Fi as well. In March CEO Jeff Thompson said in a statement that Towerstream thinks that these rooftop installations will be very valuable for mobile operators, tower companies and other telecommunications providers as they try to deal with ongoing spectrum problems and the continued need for more capacity.
SHARE ACTION: Towerstream's stock soared 50 cents, or 10.5 percent, to $5.25 in midday trading. Earlier in the session the shares reached a new 52-week high of $5.86.