Mr. Joe MacKay reports
KRAKEN NOTIFIED OF SUCCESSFUL BID ON INTERNATIONAL MINE HUNTING UPGRADE PROGRAM
Kraken Robotics Inc.'s wholly owned subsidiary, Kraken Robotic Systems Inc., has received official notification that the company was chosen as the successful bidder on a program for the acquisition of new sonar systems for an unnamed international navy. The navy customer has notified Kraken that it intends to enter into a contract with Kraken after the expiration of a standstill period.
This was a competitive bid process for upgrades of the customer's mine-hunting equipment. Kraken was one of four companies whose offers were received and evaluated and all four bidders have been notified of the result. Under the program, Kraken will deliver the Katfish towed synthetic aperture sonar, as well as autonomous launch and recovery systems (ALARS) to the customer. The total contract value is expected to be approximately $35-million to $40-million, with the majority of that received over a two-year equipment acquisition phase. Kraken currently expects product margins on this contract to be in line with its historical averages.
Final contract signing with Kraken is subject to several factors, including the expiry of the standstill period (Oct. 14, 2019) and Kraken entering into an industrial offset contract with the government business agency. In addition, the contract signing is subject to political approval, including approval by the finance committee of the customer's parliament. Kraken expects to provide additional customer and contract detail in the coming weeks.
About Kraken Robotics Inc.
Kraken is a marine technology company that is dedicated to the production and sale of software-centric sensors and underwater robotic systems.
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