General Discussion / Social Media, page-4043

Certainly perplexing about the market reaction towards the contract's pre and post confirmation announcements.

	Pre-confirmation announcement (released on 15 April 2021)	Post-confirmation announcement (released on 3 December 2021)
1	The value of Alcidion's contract for Stage 1 and 2 of the project is estimated to be approximately $21M over 5.5 years. This phase will cover implementation and a subscription to the Miya Precision platform	The value of Alcidion’s contract is estimated to be $23.3M over six years. This will cover implementation and a subscription to the Miya Precision platform. Project commencement is planned for December 2021. Further options to take up Miya Observations and Assessments and options to renew up to 15 years creates a possible TCV for the contract with Leidos of around $50M.

In other words, the contract will run for 6 months longer than initially estimated. There is also information provided on further upside potential for uptake of additional modules, longer duration and value of contract renewal. Following release of preferred provider announcement, the share price ran all the way above $0.45. Following announcement of the actual contract win (and with further details), the share price is at $0.32.

Go Figure!

As indicated in my other post, the confirmation of the contract win has changed the risk-reward proposition for Alcidion, particularly at the current share price. If contract negotiations had failed, it would have resulted in quite a bit of downside for Alcidion because of doubts over the company's capacity to expand into markets outside of hospital setting and new customer base (Commonwealth as opposed to State).Perhaps market still cannot overlook the weak Q1FY22 4C and is awaiting for more confirmation regarding revenue growth and operating leverage?