OptiCept enters lease agreement for WineCept

OptiCept has announced that it has signed a lease agreement for its WineCept technology with a prestigious wine producer in the South of France. The growing recognition of OptiCept's PEF technology in France is also generating interest within the wine industry to explore how the technology can drive similar advances. While this development is encouraging and supports our current estimates, it does not trigger immediate changes.

The agreement allows the customer to rent OptiCept's PEF technology (WineCept) for the 2024-2025 season to improve wine quality. The PEF system is expected to be operational by September, with the customer having the option to decide on a permanent solution at the end of the rental period. The installation will take place at the customer's facility, Domaine Beucastel, renowned for producing some of France's most famous wines.

OptiCept's momentum in France continues to build

The benefits of OptiCept's PEF technology have already generated interest in the French olive oil sector, which is now extending to the wine industry. We believe the new agreement in a country that prioritizes quality over quantity is a good fit for OptiCept's PEF systems. If the evaluation proves successful, we see good opportunities for additional producers in France to adopt OptiCept's technology, similar to what we have seen with OliveCept. Although OptiCept did not disclose the rental fee, the agreement is in line with its strategic shift to only pursue paid evaluations, which we see as a positive step. However, given that the rental fee is likely to be modest and that our estimates already include additional sales of OptiCept's PEF system beyond those previously communicated, we are not making any changes to our estimates or recommendations at this time.