OSP - got more information of GE agre
ement 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.
