Homestay Care Ltd - HomeStay signs MSA with Bolton Clarke
Homestay Care Ltd (ASX:HSC)

HomeStay signs MSA with Bolton Clarke


What's happened?

HomeStay Care Limited (ASX:HSC, "HomeStay") announced they have secured a 3 year master services agreement with national aged care provider RSL Care RDNS Limited (trading as Bolton Clarke).

Who are Bolton Clarke?

Bolton Clarke are one of the largest Australian owned and operated not-for-profit healthcare and independent living service providers, with a passion for ensuring its customers live the best possible life. Bolton Clarke were recently named the inaugural Future of Ageing Awards winner in Technology – Health and Wellbeing category for its digital independence offering.

Why is this significant?

An initial purchase order for PERS units of approximately $300,000 invoiced, with product delivery underway. Furthermore the MSA may govern multiple commercial projects between the parties where HomeStay provides an assistive technology platform powered by IoT devices on a project by project basis on standard commercial terms to be agreed over the next 3 years, with: setup; hardware purchase; subscription; professional service; and/or transaction fees applicable. The Agreement provides a framework whereby projects can be initiated under further statement of works (to be agreed).

What does this announcement mean?

Erik Bergseng CFA® from Mawson Graham provides perspective on this recent announcement.
Erik Bergseng CFA®
Written by Erik Bergseng CFA®
Published Jan 28, 2020

Given the size of Bolton Clarke and its reputation in technology we think this MSA is a significant form of validation of HomeStay Care's end-to-end solution. The fact multiple commercial projects can be covered under this agreement moving ahead also suggests there is additional long term revenue potential from this agreement beyond the initial $300,000 invoiced from the initial purchase.

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