Shares of Kromek have risen Tuesday morning after the company announced that it has been awarded a 7-year supply agreement by a US-based industrial OEM with a “global customer base.”
The agreement is for Kromek’s first-generation contaminant detection solution, which has a value of up to $17 million over the contract’s life and is anticipated to begin in the current financial year.
Following the successful progression of a two-year development program, Kromek was awarded the contract. During the program, Kromek provided a CZT based detector solution for incorporation into the OEM’s systems to identify contaminants during product quality inspection.
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Dr Arnab Basu, CEO of Kromek, said: “Our customer is dedicated to introducing best-of-breed solutions in their next-generation products to ensure we can live healthier and safer lives. We anticipate developing further products for this customer to support their ambitions.”
Kromek’s AIM-quoted shares rallied to a high of 16.5p following the news. However, it has since lost momentum and is trading at 15.3p, up 0.72% from Monday’s close.
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