Tracking tech stock Bluechiip calls the lawyers after key customer walks away
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Bluechiip (ASX:BCT) and its shareholders have been left stunned as key customer Labcon North America provided notice to terminate its agreement.
San Francisco-based Labcon makes labware solutions such as sample tubes which it claims are more environmentally friendly than its peers.
Labcon has for several years bought Bluechiip’s tracking technology which can identify medical samples kept in sub-zero temperatures.
This morning Bluechiip told shareholders it is claiming damages of US$500,000 after negotiations failed and Labcon walked away from the deal.
“We are very disappointed in Labcon’s decision not to perform its obligations under our agreement,” chief exec Andrew McLellan said.
“Bluechiip directors have no alternative but to enforce Bluechiip’s rights under the supply agreement to the fullest extent possible.”
McLellan assured shareholders that the company had other customers.
While he did not specifically identify them by name McLellan noted Bluechiip had remotely installed its system for a customer in Chicago in May and last month installed a system for a company in China.
McClennan said it was highly encouraging that these activities happened during global lockdowns.
“Potential OEM [Original Equipment Manufacturer] partners have continued to undertake market research and build internal cases throughout the lockdowns. We are heartened by increased activity over the last month,” he declared.
Shares peaked as high as 18 cents last year but fell to 5.7 cents before the company halted trading in its shares last week.
At market open they dropped by another 40 per cent.