Kraken Provides Positive Update on $40 Million Royal Danish Navy Mine Hunting Upgrade Program

July 3, 2020 — Kraken Robotics Inc., Canada’s Ocean Company, is very pleased to announce that its wholly owned subsidiary, Kraken Robotic Systems Inc., has received notification that the complaint process regarding the Royal Danish Navy’s mine hunting upgrade program has been finalized. The Board of Complaints which oversaw the complaint process has ruled in favor of the Royal Danish Navy’s position on all points.

Kraken originally announced in October 2019, that it was chosen as the successful bidder on a program for the acquisition of new sonar systems for an unnamed international navy. The delay since then was the result of the complaint process initiated by a losing bidder combined with a slowing of government activity during the COVID period in Europe.

This was a competitive bid process for upgrades of the Royal Danish Navy’s mine-hunting sonar equipment. As outlined in the decision, Kraken was one of four companies (including Northrop Grumman International Trading Inc., Thales DMS France, and Klein Marine Systems Inc.) whose offers were received and evaluated. Under the program, Kraken will deliver the KATFISH™ towed synthetic aperture sonar, the Tentacle® winch and Autonomous Launch and Recovery System (ALARS) to the Royal Danish Navy. The total contract value is expected to be between C$35-$40 million, with the majority of that received over a 2 year equipment acquisition phase. Kraken expects product margins on this contract to be in line with its historical averages. We expect to finalize matters with the Royal Danish Navy during Q3,2020.

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