REG - Starcom PLC - New WIMC Agreement

Star EnergyAnnouncement

22/03/2019 07:05

RNS Number : 6975T
Starcom PLC
22 March 2019
 


The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR").
 22 March 2019
 
Starcom PLC
("Starcom" or the "Company")
 
Further re. Agreement with WIMC Solutions Inc
 
Starcom (AIM: STAR), which specialises in the development of wireless solutions for the remote tracking, monitoring and protection of a variety of assets, provides an update on the agreement with WIMC Solutions Inc ("WIMC") that was announced on 23 January 2018 for the sale of Tetis units.   
 
The original agreement entered into was for the supply and support of Tetis units for the monitoring of containers by WIMC, a US-based provider of real-time monitoring services of international container movements.
 
To date, WIMC has placed orders for only 1,500 Tetis units under this agreement and these were delivered to WIMC during 2018. Although this number of units is less than previously indicated, following successful testing of the Tetis units in the field and acceptance by end customers, the Company has entered into a new agreement with WIMC, replacing the previous agreement.
 
The new agreement, commencing from March 2019, provides for an increased potential order of up to 30,000 Tetis units over a three-year period while at the same time having a slightly reduced unit price payable to Starcom, but still including ongoing SaaS revenues from each unit installed. There is no obligation for WIMC to order any units under the agreement and therefore there is no guarantee that WIMC will ultimately order the maximum number of units indicated under the new agreement, but WIMC has indicated that it expects order levels for 2019 to be up to 3,400 units, which would have an aggregate value of up to US$660,000 (excluding ongoing SaaS revenue).
 
Avi Hartmann, CEO of Starcom, commented, "We are pleased to see WIMC indicating satisfaction with Tetis and planning for larger potential orders. Tetis is one of our 'growth engine' targets and this positive feedback from WIMC is reassuring."
 
Enquiries: 
 



Starcom Plc








Michael Rosenberg, Chairman


07785 727 595




Avi Hartmann, CEO
 
 


+972 5447 5663
























Allenby Capital Limited (Nominated Adviser and Broker)


020 3328 5656




James Reeve / Jeremy Porter / Asha Chotai
 








Peterhouse Capital Limited (Joint Broker)


020 7469 0930




Lucy Williams / Charles Goodfellow / Eran Zucker
 








Leander PR (Financial PR)


07795 168 157




Christian Taylor-Wilkinson







 
 
 
 




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