Techem Partnership Agreements16 May 2023 15:04
As previously announced, Techem has also selected FireAngel's CO sensor to be part of the product specification, which will be manufactured at the Company's factory in Mississauga, Canada, to be incorporated into the NGSA. The Development Agreement was predicated on an initial forecast of approximately 7 million units of the NGSA being sold. This opportunity has now increased to up to $53m on the same unit forecast. Previously this partnership offered the Company an opportunity for income of about $38m. Whilst this forecast may in future vary up or down and will depend, among other things, on the precise delivery date, Techem and FireAngel will co-operate to assess and maximise the overall opportunity. The Company and Techem have previously agreed on a minimum royalty fee of €3 million which is payable to FireAngel after delivery commences. There is no normal right of cancellation on the contract in the first six years.