Theta Edge has officially received the termination from Institut Jantung Negara Sdn. Bhd, after the client, decided to do so on the basis that its vendor had defaulted on its delivery.
The contract contributed positively to the company in FY2021 and FY2022, however, Theta Egde noted that the risk in relation to the termination of the contract is the damages claimable as a result of the termination and claims from suppliers.
Based on the Letter of Award dated 25 February 2021, Theta Technologies Sdn. Bhd. was awarded a 4-year development contract worth of RM25.2 million (inclusive of service tax) from IJN but the contract was also not subject to any renewal term.
In a statement to Bursa, Theta said the termination was purportedly based on alleged default by it but added that the project had made substantial progress and that it is currently seeking legal advice and will make announcements when necessary.
