t42 IoT Tracking Solutions PLC shares sunk on Wednesday after it announced that its five-year distribution and sales contract with OpenBox Venture Inc has, to date, not produced any orders.
Consequently, t42 said the contract has failed to perform according to the distributor’s estimates as their estimated $1.9 million minimum order level for 2022 has not being achieved. Due to this, the contact’s that exclusivity conditions have not been met to date.
Accordingly, the company said it has been able to pursue other opportunities in the US. This has lead to successful orders, which were announced in January and March this year, t42 said.
The company added it continues to work with OpenBox under the distribution agreement and will provide further updates ‘in due course.’
t42 provides real-time tracking, analysis, monitoring, and security internet-of-things solutions for the global container and freight market.
Shares in the firm were down 14% at 4.50 pence on Wednesday afternoon in London.
t42 expects to announce its interim results on or around September 22, alongside a trading statement for the current year.
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