Spenda Ltd (ASX:SPX) MD Adrian Floate speaks with Proactive following the news the company has signed a binding term sheet for a 10-year service agreement with Capricorn for the provision of software and e-commerce payments infrastructure, subject to the successful completion of the final phase of the Digital Services Delivery initiative which is expected later this year. Spenda will receive $443,000 upon successful completion of the final phase, as well as $1.3 million in initial development fees for commercial launch in 2024 and minimum recurring revenue of $100,000 per month software licensing fees, scaling over 10 years.
Floate said: The signing of this binding term sheet with Capricorn represents a transformational commercial opportunity for Spenda.
Over the past five months, we have been working closely with the Capricorn team to deliver a payments solution to enable all Capricorn Members to access eCommerce payment solutions that are powered by Spenda. We are in the final phase of the Foundations Stage of the DSD project and on track for commercial launch in early 2024.
The terms sheet provides both parties with clarity on the long-term commercial terms including the opportunity for a possible cornerstone investment. This represents a significant partnership for both Spenda and Capricorn that lays the foundation for long-term growth for both parties over time.
Spendas potential to benefit from increased ecommerce volumes on this payments infrastructure, through Capricorns 26,000 members and 2,000 preferred suppliers, is significant.
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