AIQ Limited (LON: AIQ) announced Monday that its IT consultancy business, Alcodes International, has been awarded a contract worth $552k to supply a decentralised finance (DeFi) exchange to an Australia-based customer.
A DeFi exchange is a cryptocurrency exchange that facilitates peer-to-peer trading without the need for an intermediary.
Alcodes, headquartered in Hong Kong, is expected to complete the project in around six months and will receive payment in tranches as it achieves certain milestones.
AIQ stated that the majority revenue generated under the contract will be recognised in its financial year to 31 October 2022.
However, AIQ revealed that while it is pleased to have secured the contract, trading conditions for Alcodes remain challenging due to the ongoing effect of COVID-19 in Malaysia. The company already cautioned investors in July that it was facing troubles, warning about its future prospects.
Revenues in Malaysia are “severely depressed,” said AIQ, and they are focused on generating additional revenue opportunities while containing expenditure levels.
Edwin Li, Executive Director, said: “We are delighted to have been awarded this project to deliver a Decentralised Finance Exchange to a customer in Australia. As we said at the time of announcing the results of our strategic review, we have been looking to expand our IT consultancy work into other technology areas and I'm pleased that we have succeeded in doing this so soon.”
AIQ shares have fallen 20.59% for the year to date.
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