By Oliver Griffin

Shares in Mirriad Advertising PLC (MIRI.LN) more than doubled Friday after the company said that it has reached a new two-year agreement with Chinese video platform Tencent Holdings Ltd. (0700.HK), boosting revenue immediately.

The company said it and Tencent have been working to develop new technology that integrates Mirriad's in-video advertising technology more closely with Tencent's video platforms.

As a result, Mirriad's platform is now significantly more scalable than previous generations of the platform in China, the company said.

Under the new contract, Tencent has exclusive rights to Mirriad's technology and services in China. The Chinese company will pay a fixed monthly license fee to Mirriad, which provide a minimum volume of advertising and promotional work for use with Tencent advertising clients.

Extra work will be charged incrementally, the company said.

The contract will immediately enhance Mirriad's 2019 revenue and will generate "multiple millions of pounds" of revenue over the two-year contract term.

Shares at 0715 GMT were up 6.75 pence at 12.25 pence.

Write to Oliver Griffin at oliver.griffin@dowjones.com; @OliGGriffin

(END) Dow Jones Newswires

June 28, 2019 03:35 ET (07:35 GMT)

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