Paul Knight: Okay. Thank you.
Rod de Greef: You bet.
Operator: Our next question comes from the line of Steven Mah with TD Cowen. Your line is open.
Steven Mah: Great. Thanks for the questions. Lot of ground already covered. So just two follow-ups., So maybe just to continue on the line of questioning on some of these larger direct customers. And Rod, you said that some of these direct customers could come back faster as they kind of recover from destocking. Just maybe if you can give us a little bit more color on what gives you that confidence? And we’ve been hearing that as well from some of the other bioproduction companies that they’re seeing a bottom with regard to destocking headwinds. So, would just love to get a little bit more color on what you’re seeing out there?
Rod de Greef: Sure, I’ll give you an anecdotal situation that we just literally ran into last week. So, a large customer, I’ll try to minimize the specifics, but requested postponing the delivery of their order by a quarter, and we’ll do that for them. And yet then, two weeks later, they call us back and say, guess what, we didn’t have as much as we thought. So, we’d like to get 10% of that order actually in-house before the year-end. So it’s that kind of situation, and that’s not the only one that suggests to us that perhaps they’ve gone too far. It certainly shows in my mind, a lack of complete management and transparency within their own organization about what they need. Many of these large customers have multiple operations that purchase from us, but they all come under the same corporate umbrella.
So it’s almost as if at some level, the left hand doesn’t know what the right hand has, and they open the freezer and they see that there’s not enough cryo store and they say, no, we better go buy some. So, that is going on. And so that’s a bit of a reversal from what we’ve seen. And again, anecdotally, but that’s what we’re facing.
Steven Mah: Okay. No, that’s super helpful. And then last question. I just want to make sure, when you said the freezer divestiture process will close likely in early 2024, does that mean that you guys are close to signing a definitive agreement? And is that something that you guys are going to disclose when that’s signed? Thank you.
Rod de Greef: Yes, fair question. I think that we’re not going to announce the signing with a definitive agreement. We will obviously announce the close of a transaction, but we’re — for competitive reasons, I’d rather not say exactly where we are with the different parties. I’m sure you’ll appreciate that.
Steven Mah: Yes, fair enough. Okay, appreciate it. Thank you.
Rod de Greef: Thank you.
Operator: Our next question comes from the line of Thomas Flaten with Lake Street. Your line is open.
Thomas Flaten: Hey, Rod, welcome back. I don’t want to push the freezer business questioning too far, but do you foresee or can you help us understand if this will be a single transaction for both businesses or more likely to be two transactions?
Rod de Greef: Yes. Thanks Thomas. And what I can say there is that both options are on the table. That’s the best I can do given the competitive dynamics that we’re involved in. So, there are parties that want both, and there are parties that want each.
Thomas Flaten: Got it. And you mentioned starting to review potential locations for a new SciSafe facility. Anything you can share there with respect to location, most likely Europe, most likely US, maybe even Asia?
Rod de Greef: I think it would be in the US. We have a very nice site in Amsterdam that still has some room. So, it’s very well-positioned there next to Schiphol Airport. So, we’re good, I think, in Europe. So it will likely be a very strategic location in the US, which, again, Garrie’s strategy has been to identify an anchor tenant, if you will, which basically, when you sign that transaction or that agreement covers the fixed cost of that new facility, and then we fill it after that. And so it’s very subject to the several conversations that are going on in different places in the states relative to identifying and locking down that anchor tenant.
