Starcom PLC New Agreement with CubeMonk (3998D)

TIDMSTAR

RNS Number : 3998D

Starcom PLC

19 February 2020

19 February 2020

Starcom PLC

("Starcom" or the "Company")

New Agreement with CubeMonk Inc

Starcom (AIM: STAR), which specialises in the development of wireless , Internet-Of-Things (IoT) based solutions for the remote tracking, monitoring and protection of a variety of assets, announces a new agreement with CubeMonk Inc ("CubeMonk"), a US provider of shipping related services.

As announced on 3 February 2020, Starcom has been working with CubeMonk over the last year to adapt and implement Starcom's Kylos Air technology for use in CubeMonk's shipping solutions. A trial phase, under which a few hundred Kylos Air units were integrated within CubeMonk containers, was successfully completed in 2019. CubeMonk has received very positive feedback from the end users in the trial.

CubeMonk has now entered into a new three year Supply and Support agreement with Starcom (the "New Agreement") for the supply and support of the adapted Kylos Air units for use as part of CubeMonk's tracking service for air containers. In the year ended 31 December 2019, the Company received orders totaling $0.2 million from CubeMonk. Whilst the New Agreement does not contain any minimum purchase commitments on the part of CubeMonk, the Directors of Starcom anticipate a significant increase in orders for Kylos Air units under this New Agreement will be received in the current year compared to last year.

The Kylos Air units are connected through Starcom's online control software, and will monitor key container parameters including location, internal temperature and shocks experienced. The units are automatically shut off during the take off and turn on immediately after the landing of the aircraft in order to comply with aviation regulation - a unique feature of this product. As a result, the Kylos Air has been granted the necessary safety certifications to allow in-air utilisation.

The success of the partnership with CubeMonk to date provides the Board with the confidence that similar OEM arrangements can be achieved for a variety of third party applications, opening up further expansion opportunities for Starcom in the shipping and container tracking industry.

Avi Hartmann, CEO of Starcom, commented, "Following the successful trial, we are proud to have reached this important milestone in our relationship with Cubemonk in the USA. This contract, along with others under active negotiation, demonstrates the significant opportunity for Starcom to expand its OEM strategic partnerships with companies that will benefit from our proven technology to enhance their respective businesses."

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Enquiries:

 
 Starcom Plc 
 Michael Rosenberg, Chairman                         07785 727 595 
 Avi Hartmann, CEO                                   [phone] 
 
 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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February 19, 2020 02:00 ET (07:00 GMT)