Jane Morgan Management
New Pacific Energy $1.30 million project secured and capital raise
Transport logistics and
transport services optimisation company, Orcoda Limited is pleased to announce that its wholly-owned
subsidiary Betta Group has entered into a Subcontract Agreement with Pacific Energy
Group Pty Ltd to provide materials, installation and labour to one of
Pacific Energy's clients for a project at a major gold mine.
The Subcontract Agreement between Pacific Energy and Betta Group is for Betta Power
to deliver the materials, installation and labour being for works on high voltage power lines
to the project on behalf of Pacific Energy Group. The Subcontract Agreement provides
for Betta Power to acquire the materials (power poles and pole infrastructure) and carry
out the delivery, installation and labour on the project, adopting a profit share arrangement
with Betta Power receiving 90% of project profits and Pacific Energy receiving 10%.
Pacific Energy has the payment responsbilty to Betta Power for the delivery of Betta
Power's services under the Subcontract Agreement which has an 11 month term.
Pacific Energy is a related party of the recently appointed Executive Director Mr Williams, however Mr Williams did not participate in Orcoda Board discussions as to the merits, arms length exception status, and other Board considerations required to facilitate Betta entering into the contract.
The expected revenue from the project over time is expected to be in the vicinity of $1.3
million of which purchase orders has been received for $700k (inc GST) for materials as
the first part of the expected future purchase orders.
Geoff Jamieson, Orcoda Managing Director said; "This contract is evidence of the value add that the Betta acquisition is already delivering to Orcoda. Betta has an envious reputation as a supplier of quality services to a wide range of clients. Betta has SAI, ISO accreditation to carry out work on major infrastructure projects across road, rail & air, mining, oil & gas projects and is currently bidding on other major infrastructure works with a promising pipeline of future work that should see strong business growth into the future.The Board is pleased that the Betta Group was able to negotiate this project with Pacific Energy as quickly as it has. I feel that this speaks to the strength of the acquisition, the synergies, positive working relationships arising from Orcoda's increased capability and broadening commercial network.We are also pleased by our ability to raise additional capital as required to support our growth strategy. Today's capital raise welcomes several sophisticated and institutional clients of Fresh Equities. With our strong balance sheet, we look forward to executing this project and securing additional value-accretive business opportunities in the near future."
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