Connexionz gets approval for $3.4m contract
Connexionz says its shareholders have authorised the board to enter into a $3.4 million supply agreement to a California transit company - the biggest contract in its 14-year history.
Shareholders have also authorised the Christchurch electronic bus information firm to enter into a contract with the NZ Export Credit Office for bond arrangements needed for the contract.
Earlier this year the firm secured the large contract with the Golden Empire Transit District in Bakersfield, California.
The contract is with Golden Empire Transit District to supply a real time passenger information system and maintenance services. Work is expected to start early next year.
As part of the contract Connexionz is required to provide a performance bond with the NZ Export Credit Office to cover the entire value of the contract.
As the contract value of about $3.4m is greater than 50 per cent of the value of the company's assets, under New Zealand company law shareholders must approve the arrangement.
Connexionz has about 400 shareholders, many of them Cantabrians, and nine fulltime staff in Christchurch.
Its shares last traded at 6.5 cents on the Unlisted platform, and have moved higher in recent months.