Kraken Announces $3.5 Million of Contract & Funding Awards

ST. JOHN’S, Newfoundland and Labrador, Feb. 16, 2021 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF), Canada’s Ocean Company, is pleased to announce a new contract for subsea batteries and new funding support totalling $3.5 million.

Contract Updates
Kraken has received a subsea battery order totalling $1.5 million and funding awards for $2.0 million. The Company expects to fulfill this battery contract in 2021, while the funding awards are for projects that will be executed over the coming 12-36 months. Due to confidentiality reasons, our customers and partners cannot be named but are characterized below:

• An existing defense industry customer is acquiring additional SeaPower batteries. The contract value is $1.5 million. This is the customer’s fourth order of Kraken batteries.
• Kraken has been awarded $2.0 million of funding awards across three projects. Work on these projects will be carried by Kraken’s acoustic signal processing team in Canada, Kraken’s AI and Machine Learning team in Bremen, Germany and Kraken’s subsea power team in Rostock, Germany.

Execution of the contracts for deliveries of our SeaScout systems to the Danish and Polish navies continues and is on track and on budget. First shipments under these contracts will occur in Q4 this year.

Products and Service-Related Update:
Underwater Vehicle Platforms
Our SeaScout product consisting of the KATFISH towed underwater vehicle, Tentacle Winch, and Autonomous Launch & Recovery (ALARS) is expected to be a key growth driver. During 2020, we completed successful sea trials of the full SeaScout system on board our Ocean Seeker vessel and then used the system offshore for 3 weeks as part of our fall OceanVision campaign.

While live customer demos in 2020 were impacted by the Covid pandemic and the resulting travel challenges, we did land 2 significant contracts totalling over $40 million to supply the SeaScout systems to the Danish and Polish navies.

We see a number of significant opportunities worldwide for this platform as customers look for a solution offering leading price and performance metrics. We have a strong pipeline of international pursuits with military (NATO and allied navies) and commercial companies. Given where we are in the sales cycle with several of these customers, we feel confident in our ability to deliver significant growth from the SeaScout platform in 2021 and onwards.