Value of today's announcement
Based on the NR (CAD $20M over 9 mo), we're looking at roughly CAD $2M/mo. My take is that this will be shared 50/50 with Screenpro, who'll provide sampling and lab work services. If so, guessing a 30% margin on test kits, DM should get roughly CAD 300,000/mo from this deal. Add this to the others deals recently signed and the upcoming year looks promising while providing income while the AI deals get cleared. Once those are secured, all pistons will be pumping and we'll see increased lift. This said, we may need to wait for Q3 results to have a clearer sense of income which, in turn, will attract attention. "...it is anticipating that the aggregate dollar amount of revenue under this Agreement is expected to be over CAD $20MM for the initial nine (9) months, given the anticipated demand for COVID-19 testing and related services. There is no assurance or guarantee that the dollar amount of services under this Agreement will result in this or any amount of revenue for the Company."