SRJ Technologies (ASX:SRJ) has secured an exclusive multi year licence agreement with EFTECH to represent all SRJ products and services in Malaysia.
The company says the agreement has been signed for a minimum of 3 years, with the option to extend for a further 6 years, and includes an upfront licence payment and initial procurement of inventory of SRJ products worth $874,000.
SRJ reports that this agreement represents its first geographic exclusivity licence deal for its patented technology and first million dollar plus distribution partner.
“With this key relationship we will look to further solidify commercial cooperation for SRJ products and services in this key territory”
Under the agreement EFTECH must maintain a minimum inventory level to the value of $656,000. Additionally, the cumulative revenue from the EFTECH deal is estimated to be around $1.1 million, which also includes the increase of the previously announced PTTEP order.
The company notes product purchase order received totalling $874,000, which includes an amount for stock replenishment due to known opportunities for EFTECH to sell BoltEx.
SRJ also notes the initial EFTECH procurement will be majority fulfilled from existing manufactured inventory held by SRJ, and that based off of EFTECH sales projections, additional redraw of SRJ products is expected to occur in Q3/Q4 CY23 to maintain minimum volume requirements under the ELA.
Speaking on the agreement, SRJ Chief Executive Officer (CEO) Alexander Wood said: “We are delighted to partner with EFTECH to bring our innovative product and service solutions to Malaysia. This Agreement is a testament to our commitment to expanding our global presence and delivering value to customers in new markets.
With this key relationship we will look to further solidify commercial cooperation for SRJ products and services in this key territory. We believe that EFTECH’s extensive market knowledge and strong local presence will drive our success in Malaysia.” “Alongside previously announced geographic sales in key energy markets this Agreement is of particular significance as it displays the increasing commercial traction achieved through SRJ’s refined business model focussing on key partnerships. SRJ will look to build on such Licensing agreements in other key territories.”
SRJ Technologies is an ASX-listed company that provides specialised engineering services and containment management solutions, elevating customer’s integrity management performance. The company’s range of industry accredited products are designed to maintain and assure the integrity of pressure containment systems, as well as play an important role in the overall integrity of operating facilities.
EFTECH have more than 20 years of providing integrated services during exploration, drilling, construction, pre-commissioning, commissioning and production, and represents a leading provider of integrated services to the energy industry throughout Asia Pacific, Australia, and the UK.