Asian Central Bank Contract Update

RNS Number : 4570P

Spectra Systems Corporation

10 June 2020

 

Spectra Systems Corporation ("Spectra")

Asian central bank contract awarded to competing company with a lower bid

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication, brand protection technologies, and gaming security software, announces that it has been underbid by a competing company for a five year Asian central bank contract for the supply of taggants and sensors.  Spectra was selected along with one other company after several trials at paper mills over the past nine months. The final decision was made exclusively on the basis of the contract bid price.

Dr. Nabil Lawandy, Chief Executive Officer, stated: "We are disappointed to have lost this contract with a major Asian central bank simply on price, irrespective of the technology's strength against counterfeiting, our track record with other central banks, and our secure manufacturing capabilities.  This binary process excludes a value for price consideration and awards the contract to the lowest bidder.

"Our cutting-edge technology package, built on experience with twenty central banks and two G7 central bank customers for nearly two decades, was offered to the central bank for ~50% less than the current long standing incumbent pricing with the winning bid being below ours.

 "Lowering our price below the levels of our bid would have meant either offering an easily defeated counterfeiting technology or drastically lowering our margins, both of which are not in the long term interest of our business and reputation"

Enquiries:

Spectra Systems Corporation

Dr. Nabil Lawandy, Chief Executive Officer  Tel: [phone]

WH Ireland Limited

Chris Fielding, Managing Director, Corporate Finance Tel: [phone]

 

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