LONDON - CT Automotive (LON:CTA) Group PLC has entered into a service agreement with iAqua Watercraft Limited, a subsidiary of iAqua Limited, to provide engineering and product management services for automobile components. The contract, effective from May 1, 2024, operates on a ’cost-plus’ basis and is expected to generate no more than $100,000 in annual invoicing for CT Automotive.
Simon Phillips, the CEO and Founder of CT Automotive, holds a 30% stake in iAqua Limited, classifying the transaction as related party given his dual roles. In compliance with AIM Rule 13, the independent directors of CT Automotive, excluding Phillips, have assessed the service agreement terms with advice from Singer Capital Markets, the company’s Nominated Advisor, and have deemed them fair and reasonable.
This service agreement represents a strategic collaboration within the corporate family, leveraging CT Automotive’s expertise in the automotive sector to support its affiliate, iAqua Watercraft Limited. The company’s announcement indicates a profitable outlook for CT Automotive from this deal, although the financial impact appears to be modest in terms of the company’s overall revenue.
The information is based on a press release statement from CT Automotive Group PLC.
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