Contract Amendment to a Central Bank

RNS Number : 4253B

Spectra Systems Corporation

03 October 2022

 

Spectra Systems Corporation

October 3, 2022

Spectra Systems Corporation ("Spectra")

Contract Amendment for Supply Chain Protection for Materials to a Central Bank

Spectra Systems Corporation, a leader in machine-readable high-speed banknote authentication, brand protection technologies and gaming security software, is pleased to announce that it has executed an amendment to a materials procurement contract with a long-standing central bank customer.

The effect of this amendment is to increase the price of specified materials supplied thereunder by approximately 21% relative to the current price.  The price increase will begin with the next order and reflects Spectra's proactive efforts to mitigate supply chain issues for the customer, by bringing more processing in-house. The price increase portion under the amended contract also has a built-in annual price escalator of approximately 3%. 

In the year ended 31 December 2021, Spectra generated revenue of approximately US$5.9m from sales of the specified materials under the earlier procurement contract

In addition, Spectra will receive a $1.3m onetime payment for the development effort undertaken to be able to provide this capability.

Dr. Nabil Lawandy, Chief Executive Officer, stated: "We are delighted to have been able to ensure the supply of critical materials for our central bank customer.  We identified the potential supply chain problem well in advance of any ramifications to the program and initiated an internal development and capability which our customer greatly appreciated.  In so doing, we have not only reduced risk for our customer, but also significantly increased our revenues and earnings related to our consumables business with this central bank."

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Enquiries:

Spectra Systems Corporation Dr. Nabil Lawandy, Chief Executive Officer	Tel: [phone]
WH Ireland Limited (Nominated Adviser and Joint Broker) Chris Fielding (Head of Corporate Finance) Allenby Capital Limited  (Joint Broker) Nick Naylor/James Reeve (Corporate Finance) Amrit Nahal (Sales and Corporate Broking)	Tel: [phone] Tel: [phone]

 

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