Argo (ARGH.V) entered a $4.5 million service agreement with the Corporation of the Town of Caledon to launch and operate the company's Smart Routing transit, it said on Monday.
Under the deal, Argo is expected to launch its Smart Routing transit system in Caledon this fall and operate the service for an initial 15-month period. The agreement also provides an aggregate fee to Argo of about $4.5 million for the initial term, excluding additional potential fare revenue retained by the company.
"The Town has the ability to extend the Agreement for additional periods, including a potential twelve-month extension that has been authorized by the Town Council, subject to applicable municipal approvals," said the company in a statement. "The system is expected to serve Caledon East, Bolton and Mayfield West/Southfields, with connections to GO Transit, Brampton Transit and York Region Transit."
Shares of the company were last seen unchanged at $0.28 on the TSX Venture Exchange.