The contract is with a UK-based security company and a customer since 2013, STM Security UK Ltd. It is for OnGuard Plus,“with the ability to store critical and regulatory reports in an immutable form within the Sequestrum repository providing auditable proof of both the existence of the report as well as its original content”.
Sequestrum is Catenae’s Distributed Ledger technology digital repository – for which it has recently completed final testing on the ‘Hyper Ledger Blockchain platform’. It noting this “opens up the opportunity for Sequestrum to be run on the client’s choice of Blockchain platform, significantly broadening its potential application”. The product launch is OnSite – a “management and inspection platform… developed specifically for the construction industry”. It is added “the integration of Sequestrum ensures that inspection reports are stored in an immutable form directly from the mobile input device, recording the geo-coordinates of the device and centralised timestamping as meta data for full auditability”.
On the contract, it is stated “revenue is generated via an annual ‘in advance’ licence fee as well as a transaction fee on a ‘per report’ basis”, though there’s no financial specifics. However, it is added “we hope to make further announcements on further commercial agreements in the near future”– and there is clear positive operational momentum here.
However, the shares are still only slightly ahead of our prior update – and meaning a market cap of still only circa £3 million. With the suggested operational progress indeed looking to be following the financial strengthening, we continue to consider a share price around 0.20p a realistic target – and our stance remains buy.
HotStockRockets Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.