RE: Contract terms21 Jan 2021 23:58
Daniel1985,
I wrote the following in a thread called 'Transition to phase 2 of DHSC contract' on 10.01.2020, which I repost below as I believe it part answers your query:
GM has advised the market of the two phase deal.
RNS 29 September 2020:
"The second phase of the contract, which is optional by the DHSC, allows for the provision of up to 700 additional PCR instruments, related kits and support services, as well as additional COVID-19 products from the Company's portfolio where required. Depending upon the uptake, phase two of the contract could generate considerably more sales than the first phase."
So GM is stating the maximum contractual requirement, and has allowed for provision of a lesser amount of kits and equipment.
If the phase 2 order was substantially different, GM could say nothing because he has already stated there MAY be a phase 2.
In particular, - if DHSC want to be drip fed instruments and test kits, GM has reassured them that "Novacyt has the capacity to meet the demand of both phases of this new contract", and as drip feeding means GM would be unaware of the final value of phase 2 until it ends, or is extended, he might say nothing to maintain the usual radio silence.
I think there could be circumstances where no announcement for a phase 2 commencement need be announced, leaving us all wondering if any of phase 2 has been taken up, due to lack of an announcement.
GM won't want shareholders to be out of the loop like this, but he has taken every opportunity so far to minimise what news the market gets.
To the extent I wonder if the contract was written in this way, - because it suited one party if not both.
I believe 300 instruments was all that could be arranged for phase 1 in the time available, remember IT-IS was a supplier and not an integral part of Novacyt at the end of September.
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