OptiCept explores long-term partnership in Thailand

OptiCept has announced that it has entered into a Memorandum of Understanding (MoU) with Saab, a key player within the defense industry. The Mou is intended to explore the possibility of forming a long-term partnership in Thailand focused on productivity improvements for the food and forestry sectors. If a partnership is established and proves successful, we believe it could help open doors for new large-scale orders and thus help OptiCept achieve greater commercial scale in the FoodTech industry. While this news is encouraging, we note that this partnership is in its early stages and therefore does not trigger immediate estimate changes.

According to the announcement, no volumes have been agreed upon at this stage, but this MoU lays the groundwork for starting negotiations with the Thai customer and Saab. The parties have identified potential opportunities in several areas, including improving food processing and forestry efficiency through OptiCept's advanced solutions, establishing technology centers for knowledge transfer and local development, and exploring business collaborations in the food and agriculture sectors to drive industrial value and support OptiCept's expansion in Asia. The specific details and timeline for the project and its related activities will be determined in consultation with the relevant authorities in Thailand. This process has not yet begun.

Another positive step toward broader commercialization in FoodTech

Since the specific details and timeline for the project and its related activities have not yet been decided, we find it challenging to determine the scope of the potential partnership. However, considering the plans of Thailand's air force to upgrade its fleet with Saab's JAS 39 Gripen, and the common practice in the defense industry where large domestic investments often come with requirements for job creation, technology transfer, or skill enhancement in the local market, we believe there could be a connection. This suggests that the potential partnership with OptiCept may depend on Saab securing the deal. However, as the details are unknown at this stage, this remains speculative.

We believe this potential collaboration aligns with OptiCept's strategy of partnering with established industry players to access extensive global networks and distribution systems, enhance visibility and credibility, and accelerate market penetration. Additionally, OptiCept already has ongoing evaluations with Dole in Thailand, indicating that the country's industry aligns well with OptiCept’s technologies. The potential scale of orders resulting from this collaboration remains uncertain, but if successful, it could help the company achieve broader commercial reach. However, given the early stage of this potential partnership, we are not making any changes to our estimates at this time.