Datasection Inc. (TSE Growth: 3905) said on September 24 that a large order it announced as prospective on September 18 has now become contractually effective, after the customer paid the first installment of a deposit that was the deal's condition for taking legal effect.
The order's effectiveness had been made conditional on receipt of that deposit from the customer, a condition Datasection disclosed when it first flagged the order. Of a total deposit of $131.4 million, $98.55 million arrived on September 24; the remaining $32.85 million is scheduled to be paid within 30 days of that date. Datasection said this first payment met the contract's condition precedent, which brought the order's effect into force.
This disclosure does not name the customer or spell out the order's commercial terms. It also does not give the order's total value: the $131.4 million figure is the size of the deposit, not a stated price for the contract. Whether the remaining $32.85 million arrives on schedule, and what the order is ultimately worth to Datasection's results, are not addressed in this filing.
