Contract is for 2.1 mill (2.8 Mill AD) and supply 3 countries with a minimum of 50,000 unit per country per month over the first 6 months. That work out at sale price of $3.11 AD. The contract comes with a 2 years term, option to extend 1 more year and either company can cancel contract with 90 days notice. Manufacturing contract is for 5 years with capacity for 3 million units in the first 12 months if required. Not sure on the cost / margin. Best case revenue from sale if they increase order to max capacity for second 6 months would be $9.3 million AD in the first 12 months
DTZ Price at posting:
35.0¢ Sentiment: None Disclosure: Not Held
