KUALA LUMPUR (March 22): Theta Edge Bhd said the purported termination of its contract to develop a hospital information system and electronic medical record for Institut Jantung Negara is “based on alleged default by the company”.

“The project has made substantial progress and the company is currently seeking legal advice,” said Theta Edge in a filing to the stock exchange on Wednesday (March 22).

On Monday, Theta Edge announced that its wholly-owned unit Theta Technologies Sdn Bhd had received a notice of termination from Institut Jantung Negara Sdn Bhd.

The information communication and technology company, which is a member of Tabung Haji Group, said Theta Technologies had been awarded the four-year contract worth RM25.2 million by Institut Jantung Negara Sdn Bhd.

The letter of award was dated Feb 25, 2001, and the contract is not subject to any renewal term, said Theta Edge.

The company said the contract had contributed positively for the year ended Dec 31, 2021 (FY2021) and FY2022.

“The risk in relation to the termination of the contract are the damages claimable as a result from the termination and claims from suppliers,” it added.

Shares of Theta Edge closed 1 sen or 1.52% lower to 65 sen per share, giving the company a market capitalisation of RM76.68 million.