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Veritas2000

12,930 Posts.

1055

31/07/20

08:41

Post #: 46203171
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Originally posted by shijian3: ↑

OSP - got more information of GE agreement which was not covered in yesterday’s announcement from the CEO.

Key points:
1. 2019 US revenue was A$5.5m
2. GE distribution markets are 5x LARGER than US, so around additional revenue of A$33m (6 x A$5.5) for the first year of agreement and escalate each year.
3. Minimum purchase level is set and escalate each year.
4. Transfer price is set, which allows OSP to have +50% margin over the term.

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Not entirely sure this is a valid offering as we have no way of verifying the unnamed party.
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