REG - Spectra Systems Spectra Systems-SPSC - Contract Amendment to a Central Bank

Spectra SystemsAnnouncement

03/10/2022 07:01

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RNS Number : 4253B  Spectra Systems Corporation  03 October 2022

Spectra Systems Corporation

October 3, 2022

 

Spectra Systems Corporation ("Spectra")

Contract Amendment for Supply Chain Protection for Materials to a Central Bank

Spectra Systems Corporation, a leader in machine-readable high-speed banknote
authentication, brand protection technologies and gaming security software, is
pleased to announce that it has executed an amendment to a materials
procurement contract with a long-standing central bank customer.

The effect of this amendment is to increase the price of specified materials
supplied thereunder by approximately 21% relative to the current price.  The
price increase will begin with the next order and reflects Spectra's proactive
efforts to mitigate supply chain issues for the customer, by bringing more
processing in-house. The price increase portion under the amended contract
also has a built-in annual price escalator of approximately 3%.

In the year ended 31 December 2021, Spectra generated revenue of approximately
US$5.9m from sales of the specified materials under the earlier procurement
contract

In addition, Spectra will receive a $1.3m onetime payment for the development
effort undertaken to be able to provide this capability.

 

Dr. Nabil Lawandy, Chief Executive Officer, stated: "We are delighted to have
been able to ensure the supply of critical materials for our central bank
customer.  We identified the potential supply chain problem well in advance
of any ramifications to the program and initiated an internal development and
capability which our customer greatly appreciated.  In so doing, we have not
only reduced risk for our customer, but also significantly increased our
revenues and earnings related to our consumables business with this central
bank."

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

Enquiries:

 Spectra Systems Corporation                              Tel: +1 (0)401 274 4700

 Dr. Nabil Lawandy, Chief Executive Officer

 WH Ireland Limited (Nominated Adviser and Joint Broker)  Tel: +44 (0)20 7220 1650

 Chris Fielding (Head of Corporate Finance)

 Allenby Capital Limited (Joint Broker)                   Tel: +44 (0)20 3328 5665

 Nick Naylor/James Reeve (Corporate Finance)

 Amrit Nahal (Sales and Corporate Broking)

 

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