- Marine technology company, Kraken Robotics (TSXV:PNG) has welcomed a ruling which allows it to finally commence a lucrative contract
- After winning the bid to upgrade the Royal Danish Navy’s sonar equipment, the decision was opposed by a losing bidder
- The Board of Complaints has now ruled in the Navy’s favour, allowing Kraken to move forward with the contract
- The company expects to finalise the C$35 million to $40 million contract during 2020’s third quarter
- Kraken Robotics (PNG) is up 12 per cent and is currently trading at 56 cents per share
Marine technology company, Kraken Robotics (TSXV:PNG) has welcomed a ruling which allows it to finally commence a lucrative contract.
Back in October 2019, the company announced that it had won the bid on a contract for an unnamed international navy.
The competitive bid process was to determine which company would upgrade the Royal Danish Navy’s mine-hunting sonar equipment.
Kraken, Northrop Grumman International Trading, Thales DMS France, and Klein Marine Systems were the four companies who were evaluated.
After the Navy chose Kraken as the successful bidder, the decision was opposed by a losing bidder. The loser initiated a complaint process, which delayed Kraken’s ability to start the contract.
The process was also delayed further by the COVID-19 pandemic, which slowed down government activity in Europe. However, the complaint process has now been finalised, with the Board of Complaints ruling in favour of the Royal Danish Navy, on all points.
This ruling will allow Kraken and its subsidiary, Kraken Robotic Systems, to finally commence work on the contract. Under the program, the company will deliver its KATFISH towed synthetic aperture sonar, Tentacle winch, and Autonomous Launch and Recovery System to the Navy.
The contract has a total estimated value of between C$35 million and $40 million. Kraken is likely to receive the majority of this amount during the 2-year equipment acquisition phase.
The company expects to finalise the contract with the Royal Danish Navy during the third quarter of 2020.
Kraken Robotics (PNG) is up 12.00 per cent and is trading at 56 cents per share at 10:42am EDT.