T42 inks significant follow-on deal with customer

T42 IoT Tracking Solutions announced a significant follow-up agreement with a prominent customer for supply chain monitoring on Monday.

The AIM-traded firm said that under the agreement, the customer committed to ordering up to 30,000 'Lokies' units over the next three years, in addition to associated software-as-a-service (SaaS) fees.

It said the potential revenues stemming from the deal could exceed $7.5m for T42, although there was no certainty regarding the exact number or timing of unit orders or the resulting revenues.

The board said the agreement built upon an initial deal struck in January 2023, in which T42 delivered 2,000 'Lokies' tracking units alongside other products and services.

It said the proven effectiveness of 'Lokies' in safeguarding goods and ensuring the reliability of global deliveries led to the expanded partnership.

Additionally, T42 said it was in ongoing negotiations with holders of the 2021 unsecured convertible loan notes (CLN) to extend the maturity date and implement other amendments.

While the company said it believed that all CLN investors were supportive of the extension, the legal arrangements were taking longer than initially expected, with further updates to be provided as the agreement progressed.

“T42 is witnessing the tangible impact of its long-term efforts to integrate cutting-edge solutions within the supply chain industry,” said chief executive officer Avi Hartmann.

“There is a notable global surge in interest for 'Lokies' and the associated comprehensive T42 solution, which is expected to be positively reflected in the company's financial results in 2024 and beyond.”

At 1534 GMT, shares in T42 IoT Tracking Solutions were up 10.74% at 2.68p.

Reporting by Josh White for Sharecast.com.