Yojee Limited (ASX: YOJ) made an announcement about three-year master services agreement with a global logistics provider, Geodis Singapore Pte Ltd. As per the release dated 15th May 2019, Yojee Limited stated that subject to any termination event occurring, at the end of three years, the agreement will be renewed for the successive 12-month periods. The release issued by Yojee also pointed that the agreement will be governing multiple projects throughout the Asia Pacific, where YOJ will provide SaaS logistics as well as supply chain management technology on a project-by-project basis on standard commercial terms over the span of three years with setup, subscription, professional service as well as transaction fees applicable.
Not so long ago, YOJ released the half-yearly report for FY2019. According to the report, the company witnessed a rise of 317% in the revenue from ordinary activities and stood at $929,417 when compared to the previous corresponding period figure of $222,907. To read more information about the same, please click here.
The impact of the master services agreement (in the company’s view) is not financially material because of variance as well as difficulty in forecasting the project scope and transaction volumes. In today’s release, it was noted that Geodis Singapore Pte Ltd aims to digitise the logistics operations, optimise efficiency as well as enhance the customer experience throughout Asia Pacific with respect to land transport as well as cross-border logistics. Geodis South East Asia Road Network Director, Mr Dinesh Kenapathy communicated that after searching the market, it was apparent that YOJ built a unique solution, which supports requirements of modern logistics, drives efficiency as well as supports the requirements of the customer. He also added that the company works with more than 1,000 partners throughout the region and face challenges with respect to cross-border trucking, which is solved by YOJ’s enterprise-grade solution.
Looking at the viewpoint of the top management. YOJ’s Managing Director, Mr Ed Clarke stated that the company has strategically aligned itself with the current market needs with innovative technology. He added that YOJ is uniquely positioned to deliver solutions against requirements of Geodis.
The agreement consists of standard enterprise termination clauses, which includes termination by either of the party for any reason or no reason on the notice of 180 days.
Let’s look at how the stock price of Yojee Limited has performed today and how it has performed in the past. At market close on 15th May 2019, YOJ’s stock was trading at a price of $0.130 per share, a massive increase of 66.667%. The market capitalisation of YOJ stood at $66.1 million. Its 52 weeks high price stands at $0.175, with 52 weeks low price of $0.055 and an average trading volume of 1,050,489. Talking about the past performance, in the span of the previous six months, the stock has delivered a return of -1.27%, while in the time frame of three months, the return stood at -6.02%.