RE: schedule23 Nov 2020 12:42
Regulator, the abingdon prospectus in relation to contracts says.
DHSC Contract
Under the DHSC order form in place with Abingdon Health, the Group expects to manufacture
approximately half of the first 10 million units, with the other members expected to manufacture the
remainder. In September 2020, the DHSC raised a purchase order with Abingdon Health for an initial 1 million
units. At present, there is no purchase order for the remaining tests within the framework agreement.
"Abingdon Health has secured the supply of components and raw materials for the manufacture of 10 million
tests across the UK-RTC members and, on 25 September 2020, received the first order from the DHSC for
1 million tests out of an initial framework agreement for 10 million tests. There is scope for the DHSC
framework to be extended to cover the manufacture of a further 5 million tests by the UK-RTC. There is an
agreement with DHSC that, with prior approval from DHSC, the UK-RTC can supply the AbC-19TM Rapid
Test to other customers both in the UK and internationally."
In the financial it says ".....In order to mitigate against this, the Group agreed with the DHSC that it would receive support in the procurement of raw materials to manufacture the finished goods. The Group has received nearly £1 million of cash up front for this contract...... Funding in the form of convertible loan notes have also been secured. These are expected to cover the Group’s cashflow requirements for at least 6 months, in absence of any further revenues or funding; such revenues are expected although the timing of these do fall outside the control of the directors."
Reading it again, I agree the wording of the above leaves a query whether the £1M above is meant to indicate the totality of gov support for raw materials. The way it is worded, one could read that there is an ongoing agreement, or you could also read that it was a one-off £1M.
The actual figure is £939,512.
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