Shares of DealNet Capital Corp. (CNSX:DLS) rose more than 11% Wednesday following on the heels of its One Dealer subsidiary signing a preliminary deal for a joint marketing program with an undisclosed "large" North American heating, ventilation and air conditioning (HVAC) distributor last week.
The company's stock rose 3 cents today to 29 cents, with its shares almost doubling in the last three months.
DealNet, previously called GameCorp, recently transitioned from the gaming industry to HVAC financing and services, water heater rentals and business process outsourcing (NYSE:BPO), with the infrastructure of the BPO business underpinning the HVAC delivery platform.
Its One Dealer business is designed to provide end-to-end customer management and financing services to the HVAC industry through a network of HVAC dealers. The subsidiary is launching a full suite of financing and rental programs, logistical support, customer services, wholesale product supply and home protection plans for independent HVAC dealers and their customers in North America.
Through One Dealer, DealNet said it plans to bring together more than 80,000 small and intermediate-sized dealers in the North American HVAC and water heater rental industry under one umbrella.
The business is expected to help these dealers provide a better customer experience by leveraging fractional call center time through the BPO unit, and at the same time "authorize and encourage them to sell DealNet's finance products and services".
Under the terms of the memorandum of understanding announced last Thursday, both One Dealer and the large HVAC distributor will work together to design, implement and launch a "comprehensive financing and services suite" tailored for the unnamed distributor's dealer network.
Both parties plan to launch a pilot program in February to a limited number of dealers, they said. The program will include customized customer service, and warranty and financing solutions that will allow the HVAC dealers to compete more effectively.
A full program launch is expected to follow, subject to a successful pilot program.
Under the deal, the parties will enter into the joint marketing program on or before April 30.
"The HVAC market is driven by local customer-dealer relationships with significant demand for financing and rental programs," DealNet Capital's VP of financial services, Rick Henry, said last week.
"Thousands of dealers direct their customers to traditional banking institutions to negotiate finance solutions and only a select number of dealers in the market have access to captive rental financing solutions.
"Our goal is to assist dealers in strengthening and building on such relationships by providing them with better access to our unique full suite of financing and servicing solutions, creating a win-win scenario for all market participants."
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.