OTAQ Plc (OTAQ) Minnowtech Contract and Trading Update
25-Nov-2021 / 07:00 GMT/BST Dissemination of a Regulatory
Announcement that contains inside information according to
REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The
issuer is solely responsible for the content of this
announcement.
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OTAQ plc
("OTAQ", or the "Company")
Minnowtech Contract and Trading Update
OTAQ plc (LSE: OTAQ), the marine technology products and
solutions group for the global aquaculture and offshore oil and gas
industries, announces a new and exclusive multi-year contract to
supply Minnowtech LLC ("Minnowtech") with its sonar technology,
following the completion of successful trials. The Board also
provides a pre-close trading update ahead of the Company's interim
results for the six month period to 30 September 2021, which are
expected to be released next month.
Minnowtech Contract
Minnowtech, which provides a non-invasive technology for
managing shrimp farming around the world, has jointly developed
with OTAQ a proprietary shrimp biomass solution for which OTAQ's
sonar hardware is a vital component.
OTAQ has supplied units for testing purposes, with a value to
date of over USD50,000, which have performed in excess of
expectations in real-world field tests, offering significantly
better results than comparable sonar products when tested alongside
the OTAQ sonar. Minnowtech is now preparing for commercial launch
in Asia where an estimated 100,000 plus shrimp ponds are in
operation and could benefit from Minnowtech's solution. The signing
of the new contract begins with an initial order for over
USD200,000 of further sonars with an expectation of further orders
from 2022.
Minnowtech benefitted from significant grant income from a US
Government agency and equity financing in 2021 to fund its market
entry in 2022. OTAQ holds a beneficial interest in approximately
15.2% of Minnowtech's ordinary share capital.
Trading Update
As announced on 29 October 2021, the trial programme for the
Company's acoustic deterrent device ("ADD") with Marine Scotland
has now concluded and the results are expected in early 2022. The
Board continues to believe that the programme data will support and
better inform the EPS (European Protected Species) licensing
process required to enable the future operation of ADDs within
Scottish waters.
As previously announced, one of the Company's main customers has
given notice on OTAQ's ADDs operating in Scotland in accordance
with the terms of the original agreement ending in April 2022.
Accordingly, the Board has taken mitigating action and is
considering a range of funding options, including a significant EU
development grant for which the Company has successfully completed
the first application stage and will understand the outcome of the
second stage in 2022. In addition, the Company is reviewing its
working capital opportunities and restructuring some of its
financial obligations as well as looking to capitalise on current
and prospective new opportunities.
The Company continues to make progress on a number of other
projects, including the sports tracking project announced last
month, the live plankton analysis system in partnership with Blue
Lion Labs Inc., new ADD deployment in Chile, railway trials using
OTAQ's tracking technology and ADD trials in Australia.
Phil Newby, Chief Executive at OTAQ, commented: "We are
delighted to see the continued progress at Minnowtech. It is well
placed for growth and we look forward to working with its team in
successfully launching their biomass solution which utilises our
sonar technology. Minnowtech has worked hard on developing its
business plans as well as its product and we can now see a path to
growth. As demand grows for its product, OTAQ will benefit from the
corresponding sonar deployment."
Ken Malone, co-founder of Minnowtech commented: "Working
alongside OTAQ has enabled us to accelerate our product
commercialisation so allowing earlier than expected development of
our commercial and sales plans. We are extremely excited by the
growth potential and step change in both units deployed and returns
expected. We have a solution that has been thoroughly tested and
look forward to product launch soon."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Contacts:
OTAQ PLC Via Walbrook
Alex Hambro, Non-Executive Chairman
Phil Newby, Chief Executive Officer
Matt Enright, Chief Financial Officer
Dowgate Capital Ltd (Broker & Adviser) 020 3903 7715
David Poutney/James Serjeant
Nicholas Chambers/Russell Cook
Walbrook PR Ltd Tel: 020 7933 8780 or Otaq@walbrookpr.com
Tom Cooper/Nick Rome/Nicholas Johnson 0797 122 1972 or 07748 325 236 or 07884 664 686
About OTAQ:
OTAQ is a highly innovative marine technology company focused on
the marine aquaculture, offshore energy, renewables and
oceanographic research sectors. It operates in four worldwide
locations: Lancaster, Aberdeen and Ulverston in the UK and Puerto
Montt in Chile.
OTAQ's marine technology portfolio includes a market-leading
intelligent acoustic deterrent system, Sealfence, designed to
protect marine-based aquaculture sites from predation, with
multiple systems deployed in Scotland, Chile, Finland and
Russia.
The Company's Oceansense leak detection systems have a global
reputation as the industry standard solution and have been deployed
successfully on hundreds of jobs. OTAQ's Dragonfish laser
measurement system is fast becoming recognised as one of the most
accurate underwater precision laser measurement systems available.
OTAQ also has significant experience in the design and manufacture
of underwater connectors, penetrators and communication
systems.
It seeks to develop and continuously improve its products using
its specialist mechanical, electronic and software engineers with
decades of experience in bringing underwater technology products to
market. Concurrently, OTAQ seeks to expand its technology portfolio
through acquisitive growth, with the aim of further expanding its
aquaculture and offshore product offering.
OTAQ is proud to be fully ISO 9001:2015 accredited through
DNV-GL. ISO 9001 is an internationally recognised quality
management system and demonstrates OTAQ's commitment to
consistency, continual improvement and customer satisfaction. The
certification also demonstrates its ability to consistently deliver
products and services to market whilst meeting statutory and
regulatory requirements by applying an effective quality management
system.
About Minnowtech:
Minnowtech is an aquaculture technology company that provides a
software imaging platform that enables shrimp farmers to measure
shrimp abundance. Using Minnowtech's data-based imaging tool,
shrimp farmers can optimize the health and growth of their crop,
enhancing the harvest of market-size shrimp. Learn more:
www.minnowtech.com
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ISIN: GB00BK6JQ137
Category Code: MSCM
TIDM: OTAQ
LEI Code: 213800CZGMYB5XTUXJ52
Sequence No.: 127624
EQS News ID: 1251827
End of Announcement EQS News Service
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