Apimeds Pharmaceuticals US Inc. (AMEX:APUS) stock surged Monday after subsidiary MindWave Innovations Inc. USA signed a two-year agreement with BlockAssure Inc. to build and operate a blockchain network for insurance and reinsurance.
The stock jumped more than 76% in premarket trading before giving back part of those gains. Apimeds shares were up 43.48% at the time of publication Monday.
Trading activity was unusually heavy. Session volume reached 21.59 million shares, more than 10 times the stock’s 100-day average volume of 2.06 million shares.
MindWave Expands Into Insurance Blockchain
MindWave, a wholly owned Apimeds subsidiary, said Monday that it signed a master maintenance and services agreement with Delaware-based BlockAssure.
Under the agreement, MindWave will develop, audit, deploy and operate AssureChain, a blockchain network designed to handle BlockAssure’s insurance and reinsurance operations.
The system will support insurance contracts, policy administration, premium payments, reinsurance agreements and claims processing. AssureChain will operate as a subnet of MindChain, which will provide settlement services and anchor records to Ethereum.
MindWave will receive development fees in quarterly installments. The companies will determine future operating and maintenance fees separately.
The agreement also gives MindWave an allocation equal to 20% of the total supply of AssureCoin, a digital token that BlockAssure plans to create. That allocation depends on the token being launched.
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Development Planned Over Four Quarters
The agreement took effect Oct. 4. Development is expected to take four quarters, subject to milestones and BlockAssure’s acceptance testing.
MindWave will serve as BlockAssure’s exclusive blockchain provider for AssureChain during the agreement. The contract automatically renews for one-year periods after the initial two-year term unless either party provides 90 days’ notice.
AQUAE Deal Added To Recent Momentum
The BlockAssure agreement follows another blockchain deal announced Sept. 24.
MindWave signed a 12-month technology services agreement with Singapore-based AQUAE Holdings Pte. Ltd. to build and operate AQUAEChain, a platform for insured ALCI Credits.
MindWave will design, deploy and host the platform using its MindChain infrastructure. The agreement includes software development and technology service fees, as well as an allocation equal to 20% of ALCI Credits issued and outstanding on the network.
That agreement took effect Sept. 14. After the initial 12-month term, the companies expect to pursue a five-year technology services arrangement, subject to further agreement and definitive documentation.
APUS Price Action: Apimeds Pharmaceuticals shares were up 43.48% at $4.62 at the time of publication on Monday, according to Benzinga Pro data.
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