REG - T42 IOT Tracking Sol - t42 signs five year U.S. distribution contract

t42 IoT Tracking SolutionsAnnouncement

04/01/2022 15:10

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RNS Number : 4039X  T42 IOT Tracking Solutions PLC  04 January 2022

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.

 

4 January 2022

 

t42 IoT Tracking Solutions plc

 

t42 signs a five year U.S. distribution contract for containers tracking
solutions with exclusivity linked to the achievement of total estimated sales
of US$76m

 

t42 IoT Tracking Solutions plc (AIM: TRAC) ("t42" or the "Company"), the
real-time tracking, security and monitoring solutions for the global container
and freight market, is pleased to announce a five-year contract with OpenBox
Ventures Inc ("OpenBox"), for the sale and distribution of some of t42's
tracking solutions and services across the USA (the "Contract").

 

In order to maintain exclusivity, OpenBox must meet minimum annual order
volumes and whilst these are not guaranteed, if they are met it could result
over the period of the Contract in over 280,000 t42 Tracking Lock units
(previously known as Lokies) supplied to OpenBox and revenue of approximately
US$21m in the first three years and a total of US$76 million over the five
years of the Contract, of which approximately US$29 million is expected to be
contributed by recurring SaaS revenues.

 

OpenBox distributes cutting edge technologies across the US security industry
ensuring the integrity of goods transported in shipping containers. It will
act as the vendor and distributor of the t42 Tracking Lock product in the
USA, as well as on certain online platforms. t42's remaining innovative IoT
capabilities which enable real-time tracking, monitoring and security for
shipping container owners remain outside the scope of the Contract, which the
management of t42 believe have huge revenue potential in the USA alone, in
addition to the Contract.

 

The Company's new strategy targets the multibillion-dollar global shipping
container industry, where the Board sees immense unmet asset tracking needs.
t42's state-of-the-art solution provides 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.

 

Avi Hartmann, CEO of t42, commented:

"We are delighted to announce t42 IoT Tracking Solutions plc's second sales
and distribution partnership since the implementation of the Company's new
strategy. The Contract with OpenBox reflects our new strategic focus on the
global shipping container market and the minimum orders needed for exclusivity
to be maintained by the distributor are a strong indicator of the major sales
opportunities they believe they can achieve.

 

"The Board believes that considerable losses for global shipping and logistics
companies, and the disruption to supply chains, could be prevented by
widespread adoption of t42's real-time monitoring solution. The Company is
therefore keen to spread the benefits of its tracking technology as widely as
possible around the world and to deliver significant benefits in terms of
improved reliability and efficiency of global supply chain assets. 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                                                 +972 547 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 (mailto:t42@yellowjerseypr.com)

 

 

Notes to Editors

 

t42 IoT Tracking Solutions plc (AIM: TRAC), formerly Starcom Systems plc,
provides real-time tracking, analysis, monitoring and security IoT solutions
for the global container and freight market and covers 55 countries, over 100
distributors and 50 logistics and support partners.

 

t42's multi-sensor IoT tracking devices use a wide range of detection
capabilities with cloud-based analytics and alerts, with real-time data
transmission, analysis and actionable insights. Its devices are used by ports,
cargo owners, shipping companies, freight forwarders, insurance companies,
customs authorities and homeland security and police for end-to-end global
container tracking and digital transformation of shipments.

 

For more information on the Company, please visit: www.t42.co.uk/
(http://www.t42.co.uk/)

 

Information required pursuant to rule 26 of the AIM Rules for Companies can be
found at www.starcomsystems.com
(https://eur03.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.starcomsystems.com%2F&data=04%7C01%7C%7C3addcb65a0c94052a6fb08d9cf90c035%7Cfc69750aedcc43bebd5b2cbe6f8d8c37%7C0%7C0%7C637769042874699189%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=F3frAfO0Y2OTgmn9tmomlJpMV5LLmwRpwup7Xb8p1sk%3D&reserved=0)

 

 

OpenBox Ventures Inc.

 

OpenBox provides companies with venture capital funding and commercial
distribution through pairing  new cutting-edge technology with the U.S.
defense and shipping markets. With over 25 years of track record
in  successful business development, OpenBox is driving partnerships towards
operational and commercial scale-up within the U.S. defense, transportation
and port authority sectors.

 

The company's website can be found at: https://openboxventures.com
(https://openboxventures.com) .

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