Thursday morning shares rose almost seven percent to $0.16 on Toronto's Venture exchange.
The agreement, which includes the production, marketing, and global distribution of a direct-to-home DVD golf instructional series, will be marketed under the TOURAcademy brand name and is slated for release early this summer.
The agreement is exclusive for a period of three years and includes an option to extend for one-year consecutive terms afterwards.
Digital Shelf Space, an independent creator, producer and distributor of home entertainment content targeted at the sports and fitness space, is known for its GSP RUSHFIT home workout DVD series, which features Mixed Martial Arts (MMA) welterweight world champion Georges St-Pierre.
GSP RUSHFIT recently reached Amazon.com's top 20 bestseller list after only three months of being listed on the website. The DVD fitness series has exploded in popularity since launching in December 2010, with international distribution taking off. The company recently announced the home workout DVD series began retailing in Australia in the first quarter, and in February announced the start of retailing in the Philippines.
"We had been seeking a vehicle whereby we could effectively translate our world-class golf instruction program and methodology into a format which could reach golf enthusiasts across the country and around the world," said Golf Experiences' president and chief experience John Fechter.
"This new video series format will allow us to do just that. We are confident that this team is well-equipped to deliver a high-quality, high-appeal, DVD instructional product."
Digital Shelf Space's president and chief executive Jeffrey Sharpe added: "We are pleased to be working with Golf Experiences and one of the top brands globally in all of professional sports."
The company said that as part of the agreement with Golf Experiences, Digital Shelf Space issued 1.25 million units at a price of $0.20 each to Golf Experiences, raising $250,000 for marketing, advertising, working capital and general corporate purposes.
Each unit consists of one common share and one half common share purchase warrant. Each whole purchase warrant will entitle Golf Experiences to purchase one common Digital Shelf Space share at $0.30 per each on or before the date 60 months following the closing of the offering.
Sharpe concluded: "Golf Experiences has further demonstrated its confidence in our organization's ability to deliver long term value in exchange for the $250,000 investment in DSS.
"We are confident that together we will deliver a premium TOURAcademy experience program to golfers all around the world."