Shares of Heelys, Inc. (HLYS) spiked to an intraday high of $4.56, up 10 cents, after the company announced a settlement over patent and trademark infringement in which Elan-Polo, Inc. will pay the Dallas-based company a total of $1.4 million. Further bolstering the stock price, Heelys announced the appointment of Jerry R. Edwards to its board of directors, putting the company back in compliance with an important listing rule.
Heelys signed a licensing agreement giving wholesale footwear merchant Elan-Polo the rights to manufacture and sell a certain style of shoe skates with non-removable wheels to an approved list of retailers in the United States and Canada, in return for royalty payments. The licensing agreement runs until March 10, 2011.
“This licensing agreement gives us better control over the marketplace by providing us with a strategic vehicle to access and monitor the distribution of entry-level products, while at the same time maintaining the integrity and premium positioning of the Heelys brand,” Interim Chief Executive Ralph Parks said in a press release. “We look forward to a mutually beneficial relationship between our two companies.”
Upon the appointment of Edwards today, Heelys advised Nasdaq that it is currently in compliance with the Marketplace Rule 4350(d)(2)(A). Edwards has over 25 years of experience managing high performing apparel and information technology operations, according to a filing with the Securities and Exchange Commission. Edwards served as the chief executive officer and president of Pearl Izumi for 7 years. Pearl Izumi designs performance apparel and footwear for cycling, running, fitness, and other active outdoor sports.
Heely’s, incorporated in 2000, designs, markets and distributes action sports-inspired products to the youth market. The company’s primary product is a patented wheeled footwear that allows the user to transition from walking or running to skating by shifting weight to the heel.
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