- Vonex (VN8) has seen its share price drop slightly after providing more clarification on a recently signed wholesale agreement
- The company’s subsidiary, 2SG Wholesale, signed the agreement with Orange Business Services earlier this month
- Under the deal, 2SG will provide business-grade mobile broadband services to Orange over three years
- However, VN8 has since revealed there is no exclusivity binding to the three-year agreement between 2SG and Orange
- Additionally, Vonex advises there are no minimum purchase orders attached to the agreement, meaning potential revenue is unknown
- VN8’s shares have dropped 14.1 per cent since today’s update, ending the day trading at 27.5 cents each
Vonex (VN8) has seen its share price drop slightly after providing more clarification on a recently signed wholesale agreement.
The telecommunications company announced on Friday, February 5, that its subsidiary 2SG Wholesale had signed a wholesale agreement with Orange Business Services.
Under the deal, 2SG will provide business-grade mobile broadband services to Orange over a three-year term.
The agreement with Orange also brings the number of 2SG wholesale customers, bringing the businesses’ total number of mobile broadband services to 82.
However, Vonex has since clarified there is no exclusivity binding to the three-year agreement between 2SG and Orange, and either party can terminate the deal if they give six months’ notice.
Additionally, there are no minimum purchase orders attached to the agreement, meaning VN8 is unable to say what potential revenue could come from the deal between its subsidiary and Orange.
Today’s fresh clarification on the agreement comes after the company entered a brief trading halt on Monday, February 8.
Since the halt ended and today’s update was released, shares have dropped slightly as investors react to the news.
Vonex ended the day down 14.1 per cent with its shares trading at 27.5 cents each.