5 September 2018
AVA receives confirmation of Letter of Intent for a major military project
Ava Risk Group Limited (ASX: AVA) announced today that a data network security solution developed by its Technology Division has been selected to protect one of the world’s largest closed user group data networks for the exclusive use of more than one million military personnel.
• A Letter of Intent to manufacture FFT network security technology, under licence, has been issued to Ava Group’s in-country manufacturing partner, SFO Technologies Private Limited (SFO).
• The value of the licence fee is estimated at to be between US$10.5m and US$11.1m (A$14.4m and A$15.2m) and expected to be delivered over a 15 month period.
• While the final value and timing of licence fee revenue to Ava Group are dependent upon final cost of goods and delivery schedules, it is anticipated that approximately US$5.84m (A$8m) revenue will be generated in FY2019 with the remaining revenue expected in FY2020. The LOI estimates that SFO will receive the formal purchase order by the end of September 2018.
