Starcom PLC New WIMC Agreement (6975T)

TIDMSTAR

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                                   [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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March 22, 2019 03:01 ET (07:01 GMT)