Shares in Innovo Group Inc. shot up more than 13 percent Monday after the company entered into a three-year distribution and licensing agreement for its Joe's Jeans brand with Japan's Itochu Corp.
Under terms of the deal, Itochu will buy a minimum of $20 million of Joe's Jeans products for distribution and will pay a license royalty of 6 percent of net sales on all jeans and 5 percent of sales on all tops.
Japan is City of Commerce-based apparel company's largest international market.
Foxmark International, a Japanese-based management services company, is Innovo's strategic adviser in Japan.
Shares of Innovo rose 14 cents, or 13 percent, to $1.17 in afternoon trading Monday on the Nasdaq.
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