REG - T42 IOT Tracking Sol - Agreement to Supply Container Tracking Devices

t42 IoT Tracking SolutionsAnnouncement

17/12/2021 14:30

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RNS Number : 0858W  T42 IOT Tracking Solutions PLC  17 December 2021

The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.

 

17 December 2021

 

t42 IoT Tracking Solutions PLC

("t42" or the "Company")

 

Agreement to Supply IoT Shipping Container Solutions to Latin America

t42 IoT Tracking Solutions plc (AIM: TRAC), which provides IoT driven
real-time tracking, monitoring, analysis and security solutions for the global
container and freight market, is pleased to announce that it has secured an
agreement with a Latin America consortium (the "Customer") for the sale and
distribution of t42's shipping container tracking devices, including its
"Tetis" and Lokies" products, and SaaS related revenues (the "Agreement").

 

The Agreement is for no fixed term but provides a framework for the Customer
to order up to a certain amount of product from t42 through to the end of
2024, with ongoing SaaS revenues on units deployed, which could result in
overall revenues in excess of US$40 million if the maximum number of product
units indicated by the Customer are deployed.  Whilst there is no commitment
for the Customer to order a minimum amount, the Agreement provides that
exclusivity for a Latin American country will only be granted to the Customer
if the total orders indicated in the Agreement are placed in 2022, 2023 and
2024.  However, there is no guarantee on total revenues at this stage and the
exact annual offtake of products under the Agreement is still subject to
further discussion and is expected to be more clearly defined as work under
the Agreement progresses.

 

The Customer is a Latin America consortium of five leading local companies
which provide data information to the port authorities for a major regional
port in Latin America and it is expected that further opportunities will arise
from this relationship over the next few years. The consortium will assist
port authorities to track and monitor goods in transit and to increase
taxation revenues.

 

The Company's new strategy is to target the multibillion-dollar global
shipping container industry, where the Board sees immense unmet asset tracking
needs. t42's state-of-the-art solutions provide 24/7 real-time monitoring,
cloud-based analytics, enhanced security and actionable data for target
customers which includes ports, cargo owners, shipping companies, freight
forwarders, insurance companies, customs authorities and homeland security and
police.

 

This Agreement follows the Company's announcements on 22 October and 3
November 2021, in which it was reported that negotiations for potential new
contracts were in advanced stage discussions for the supply of Starcom's
various devices for the tracking and monitoring of containers and related
items. The Directors of t42 were seeking to conclude at least one contract
before the end of this year and in addition to this Agreement, discussions
also continue with other potential customers for similar contracts,
particularly in South America and the USA.

Avi Hartmann, CEO of t42, commented:

"We are delighted to announce our first sales and distribution partnership in
Latin America, with potentially significant revenues over the four-year
period, which would make it the largest contract in the Company's history.
This reflects our new strategic focus on the global shipping container market
and is expected to be the first of a number of deals in this sector that we
hope to complete over the coming months.

 

"The Board believes that considerable losses for global shipping and logistics
companies, which have been estimated at US$50bn annually, and disruption to
supply chains globally could be prevented by widespread adoption of t42's
real-time monitoring solutions. The Company is therefore keen to spread the
benefits of its tracking technology as widely as possible around the world and
thereby deliver significant improvements in reliability and efficiency of
global supply chain processes. This will in turn drive down costs for the
shipping industry, and hence for end user consumers.

 

"With discussions now well advanced on a promising pipeline of substantial
projects within the sector, we look forward to providing further updates in
due course."

 

Contacts:

 

 t42 IoT Tracking Solutions PLC

 Michael Rosenberg, Chairman                                       07785 727595

 Avi Hartmann, CEO                                                 +972 5477 35663

 Allenby Capital Limited (AIM Nominated Adviser and Joint Broker)  020 3328 5656

 Jeremy Porter/Piers Shimwell

 Peterhouse Capital Limited (Joint Broker)                         020 7469 0930

 Lucy Williams/Charles Goodfellow/Eran Zucker

 Yellow Jersey PR (Financial PR)                                   020 3004 9512

 Tom Randell/Henry Wilkinson/Annabelle Wills                       t42@yellowjerseypr.com

 

 

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