Toumaz, an AIM listed company which designs ultra low-power wireless systems has jumped 17% in morning trading after spinning off a new subsidiary.
Toumaz Microsystems will focus on developing integrated circuits for low power wireless communication.
Currently systems like Bluetooth are considered too power-hungry for certain types of applications, such as devices to be used inside the human body for instance.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
The real eye-opener for investors has been an agreement that FTSE 250 tech company, Imagination Technologies, will invest £5m into Toumaz Microsystems for a 25% stake.
This £5m will come in the form of licences to Imagination's hardware and software technologies, and supportive engineering resources. The investment also demonstrates the perceived value of Toumaz's work, particularly following the establishment of new standards in so called "Body Area Networks".
The technology protocols for these networks have been worked out with major players, including Texas Instruments, GE, Philips, Fujitsu and Samsung. The applications could involve devices that monitor people's vital signs and send the data wirelessly back to a health care provider.
As part of the reorganisation of Toumaz, a Health Technologies division will be created focussed solely on medical and sport applications.
Professor Chris Toumazou, Toumaz's Chief Executive, commented:
"Establishing Toumaz Microsystems is the next logical step for us, building a subsidiary for our radio IC chip development with investment and support from strategic partner, Imagination. The rest of the Group, operating now as Toumaz Health Technologies, can then be focused on the applications for our technology in the health care and leisure arena."
In the last twelve months Toumazou's stock has gained 31.5%.
King Charles banknotes to enter circulation in June
New banknotes featuring the King will enter circulation on 5 June – here’s what they will look like and what you need to know about your old notes.
By Katie Williams Published
Metro Bank to slash 5.22% savings rate for current customers- what’s the next best alternative?
Metro Bank is set to cut the rate on its best buy instant access saver for existing customers. Is there an alternative on the market and should you switch now?
By Vaishali Varu Published