Yojee shares were dragged 5% down despite the company announcing exclusive technology partnership with Malaysia’s leading logistics service provider, Aero Line Services.
Logistics technology company Yojee Limited (ASX: YOJ) announced that it has inked an exclusive agreement with Aero Line Services for providing fleet and delivery management for the agreed term of 36 months, starting from 15 November 2018.
With this exclusive arrangement, Yojee Limited is now able to render its logistics technology services for the Malaysia’s second largest financial institution via a committed major commercial project between Aero Line Services and that institution. This outlines Yojee first step in providing its software solution for the financial industry and supporting rapid growth of Aero Line. Going forward, the company eyes further expansion opportunities coming across both in Malaysia and overseas’ financial market. The company further estimates that in Malaysia alone, there is a transaction of over 120 million cheques over a year, which requires logistics movement between clearance house, senders and branches.
Through its wholly owned subsidiary Yojee Solutions Pte Ltd, Yojee Limited has signed an agreement with Aero Line services on advanced commercial terms including minimum monthly fees consisting of a base fee over a 36-month period. Further, the agreement provides that Yojee will be entitled to receive additional project by project fees at 10% of the project’s revenue.
The principal work involved under the terms of agreement includes cheque collection and delivery to sorting centres, interchange of mortgage documents between legal firms and branches, and transfer of documents to safe storage centres.
Aero Line Services is already a customer of Yojee Limited but has now created a partnership with the company to achieve its goal of digitizing freight movement across financial industry. The idea is to serve the paper-based banking sector that is still prominent across Asia, with consumer and business banking, payments, mortgages and many other areas reliant on express movements of paper-based information.
Aero Line Services Group Managing Director Zamri Bin Khamis stated the Yojee Solution has proven to provide end to end efficiency and transparency that is highly appreciated by Aero’s customers. Managing Director Ed Clarke said that this agreement underlines the flexibility of Yojee’s product and its ability to be applied in multiple verticals. Despite announcing significant partnership in Asian market, Yojee’s shares plunged by 5.063% to close at $0.075 on 15 November 2018. Moreover, the stock has witnessed a negative performance change of 49.03% over the past one year.
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