Ann: AnteoTech Customer Ellume Secure US Contract, page-104

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ArtVandelay

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03/02/21

19:39

Post #: 50685352
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Originally posted by Stockcount ↑

Exactly.

"material revenue increases will not be seen until the supply agreement is renegotiated at the end of the year"

I think ADO heard the news and asked Parsons to renegotiate. But he said no. That's why it was a pause then a trading halt. What was said today in the announcement could of been said yesterday.

Maybe we asked for too much ? well I would say more than they pay now. But now I would venture to suggest that ADO has now set the terms that Ellume will need to meet come October 2021. Until that time, Ellume is getting anteobind under the old arrangements. Therefore revenue will increase modestly.

There is no threat to the relationship. It is the pointy end of business when contracts are negotiated. 5 year deal was done 4 and half years ago. After that more deals will be done. ADO has supply agreements in place with several companies and similar rules and pricing would apply. Similar to the new terms, not the old, currently being enjoyed by Ellume.

As long as Ellume doesn't order 100 litres before October !

ADO sells anteobind pretty much at $100,000 per litre. Thereabouts.

They can order 100 litres after October !

Expand

I think there is a lot of over-thinking here.
Business doesn’t happen that quickly, asking Parsons to renegotiate, told no then calling a snap trading halt. The company made a decision it would want to release an announcement, it took a while to write it, then the back and forth with the ASX and it didn’t make close yesterday.
No more complicated than that, I’d suggest.

ADO Price at posting: 18.5¢ Sentiment: Hold Disclosure: Held
6 Upvote

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