I believe there are 2 problems...
- No, BRN does not have to publish the signing of significant contract with a customer if it is under NDA. Making an announcement about signing a major contract would require that they name the party otherwise it could be a spurious claim. However, if the deal was done subject to NDA ("we don't want you to tell anyone, because that is a commercial secret.") then no announcement.
- The ASX is pretty strict on any price sensitive announcement being based on committed revenue. i.e. the contract WILL result in actual quantifiable sales to BRN in a reasonable time frame. The problem with license agreements is that it is dependent on the customer's ability to complete R&D and then market the product. That could be years. The revenue only starts flowing back to BRN when the customer's product hits the market. A lot could go wrong between when the license deal is signed and when the product hits the market, including the customer abandoning the product.
The Mercedes deal is a good example of why the ASX is strict on such announcements. The BRN share price hit a record high off the back of that news and here we are, years later, and no revenue. Mercedes are still fine tuning it and I believe it has only been used in concept cars.
I think I got all that right, I write this from memory. Don't have time to check the facts.
DYOR
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