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Spectra reaches licensing agreement with major banknote supplier
Tech-based security solutions firm Spectra Systems has inked a licensing agreement to extend the rights of its underlying technology to an unnamed client, unlocking $11.2m in royalty payments for the firm over the next five years.
In addition to the funds generated from the licensing agreement with the "major supplier of banknotes", which was set to be paid in eleven equally spaced instalments, Spectra also executed a material supply agreement with the same client that would see the AIM-listed firm supply covert materials to the licensee at reduced rates for a ten year period.
Spectra's board anticipated that the supply of materials, which did not incorporate minimum quantities, would generate a further $1.5m to $2m over the next five years.
The Rhode-Island based group expected revenue and pre-tax profits to "significantly exceed market expectations" as a result of the newly signed agreements.
Dr Nabil Lawandy, chief executive officer, said, "We are delighted to have consummated these agreements with our existing partner for over a decade and thereby provided shareholders with further contracted revenues on this product, which has already been in the market for 15 years."
"Together these agreements are expected to result in over $14m in revenues from this licensee for this product through the period 2018-2028," Lawandy added.
As of 1000 GMT, shares had leapt 19.75% to 97.60p.