Smart city platform provider Traffic Technologies has secured its position within the Tasmanian market into 2023 after winning new lighting contracts with TasNetworks.

The company has received $3 million in forward orders for the supply of Traffic Technologies’ smart city LED lighting solutions, with 60% of these orders extending beyond the existing contract period.

This comes shortly after Traffic Technologies revealed its contract with TasNetworks had been extended until October 2022. 

“These orders secure the company’s position in Tasmania, which has become an important market for our products and provides a significant opportunity for the roll-out of our smart city platform ‘TST’ into Tasmania,” CEO Con Liosatos said.

The lights being supplied under these orders utilise the latest LED technology, which use lower wattages to improve energy consumption, the company said.

Traffic Technologies was the first major manufacturer to supply these sorts of lighting solutions to TasNetworks, and the company is working with the organisation’s engineers to develop light fixtures tailored to the state’s environment.

ADM Capital agrees to participate in shortfall

Earlier this week, Traffic Technologies announced it had signed an agreement with ADM Capital that will see the latter participate in any shortfall in the company’s November rights issue.

On 26th November, ADM Capital signed a binding agreement to participate in any shortfall taking up to 6,666,666 shares.

The uptake of these shortfall shares is conditional on Traffic Technologies agreeing to pay down ADM Capital’s $7 million debt facility as a first priority following the fundraising round, after payment of share issue costs.

This includes the proceeds from the shortfall itself.

Paying down this debt will follow the payment of any share issue costs.

Up to $9 million in contracts awarded by Queensland TMR 

Last week, Traffic Technologies announced they had been awarded up to $9 million in contracts by the Queensland Department of Transport and Main Roads. 

The contracts cover a five-year period with two options for further three-year extensions, potentially expiring in 2032. Mr Liosatos said these contracts will benefit the company and assure its footing in the state.

“The term contracts are significant as they provide an important source of long-term recurring revenue and secure the Group’s position in the Queensland market,” he said. 

Join CEO and MD Con Liosatos for a live investor briefing on Friday, 3rd December, at 11am (AEDT). Click here to book in.

Reach Corporate have been engaged by TTI to assist with their investor communications.

Sources

• TTI ASX Announcement, Orders of $3m Smart City LED Street Lights Secured
• TTI ASX Announcement, ADM Capital Commitment to Participate in Shortfall