BluMetric Announces Notice to Proceed for $12.2M Production of Mission Ready Water ASUWPS Systems

Rhea-AI Summary

BluMetric Environmental (OTCQX: BLMWF) has received a notice to proceed with the production of 26 self-contained water treatment units under a $12.2 million contract with Rheinmetall Canada for the Canadian Armed Forces. The production, which includes associated equipment and cold weather ancillary packages, will take place at the company's Carp, Ontario facility with delivery expected within 18 months. The Advanced Sub-Unit Water Purification System (ASUWPS) has successfully passed rigorous testing, including road, cross-country, and water challenge tests at the 5 CDSB Gagetown. The system is based on proven ROWPU and SROD designs that BluMetric has supported for over a decade. Additionally, the company has granted 402,000 stock options to Directors and Employees at $0.99 per share.

Positive

• Secured $12.2M contract for 26 water treatment units with 18-month delivery timeline
• Successfully passed rigorous military testing requirements
• Potential for additional unit orders under the Rheinmetall contract
• Built on proven technology with 10+ years of successful military deployment

Negative

• Stock option grants of 402,000 shares may lead to potential dilution

Ottawa, Ontario--(Newsfile Corp. - May 5, 2025) - BluMetric Environmental Inc. (TSXV: BLM) (OTCQX: BLMWF) ("BluMetric" or "the Company"), an engineering WaterTech and full-service environmental consulting firm, today announced that it has received a notice to proceed for production of its Mission Ready Water systems under the previously announced Rheinmetall Canada contract for the Canadian Armed Forces.

In accordance with the contract, which is now valued at $12.2 million, BluMetric will produce a total of 26 self-contained water treatment units, their associated miscellaneous equipment units, and a portion of cold weather ancillary packages. Production will be at the Company's Carp, Ontario facility and is expected to be delivered within the next 18 months.

"Our team is thrilled to advance to this crucial stage of production and see the Canadian military's commitment to our Mission Ready Water solutions," said Scott MacFabe, Chair & CEO of BluMetric. "This notice to proceed is a testament to our ability to deliver on a high-quality and robust system that meets the highly demanding needs of a military organization. We look forward to executing this contract while further strengthening our military partnerships worldwide."

This notice follows rigorous testing of the first production unit which was subject to road and cross-country tests at the 5th Canadian Division Support Base (5 CDSB) Gagetown in New Brunswick, Canada. It also passed water challenge tests for biofouling and hardness, bacteria, virus, organic, and inorganic contaminants.

This product, known as the Advanced Sub-Unit Water Purification System (ASUWPS), is derived from the established and proven Reverse Osmosis Water Purification Unit (ROWPU) and Shipboard Reverse Osmosis Desalination (SROD) designs. These systems have been deployed and supported by BluMetric for the Canadian Armed Forces for over ten years, demonstrating their reliability and effectiveness.

Additionally, there remains the possibility for authorization of further units under the Rheinmetall contract. Since the initial contract announcement on May 23, 2023, three additional packages of cold weather ancillary equipment have been included.

Lastly, pursuant to the Company's Board recommendation, BluMetric has granted options of 402,000 common shares to Directors and Employees of the Company. These options are granted effective February 26, 2025, vest over two years, and are exercisable into Common Shares of BluMetric at a price of $0.99 per share for a period of seven years.

About BluMetric Environmental Inc.

BluMetric Environmental Inc. is a publicly traded environmental consulting and engineering company with expertise across professional and trade disciplines and technologies that allow for the design, fabrication and delivery of sustainable solutions to environmental and water challenges. BluMetric has more than 220 employees operating in ten offices and over 45 years of expertise. Headquartered in Ottawa, Ontario, BluMetric's team of industry experts serves Commercial and Industrial, Military, Mining and Government clients.

For more information, visit www.blumetric.ca or please contact:

Scott MacFabe, Chair and CEO
BluMetric Environmental Inc.
Tel: 1-877-487-8436 x242
Email: smacfabe@blumetric.ca

Dan Hilton, CFO
BluMetric Environmental Inc.
Tel: 1-877-487-8436 x550
Email: dhilton@blumetric.ca

Brandon Chow, Principal & Founder
Panolia Investor Relations Inc.
Tel: 1-647-598-8815
Email: brandon@panoliair.com

Forward-Looking Statements

Some of the statements in this press release, including those related to obtaining approval of the TSX-V for the Company's amended and restated stock option agreement, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, are forward-looking statements within the meaning of applicable Canadian securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the Company's expectations, estimates, and projections regarding future events. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR+ at www.sedarplus.ca. The Company does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/250747

FAQ

What is the value and scope of BluMetric's (BLMWF) new military contract?

BluMetric's contract with Rheinmetall Canada is valued at $12.2 million for the production of 26 self-contained water treatment units, associated equipment, and cold weather ancillary packages for the Canadian Armed Forces.

When will BluMetric (BLMWF) deliver the water treatment units to the Canadian Armed Forces?

BluMetric will deliver the water treatment units within 18 months from the production facility in Carp, Ontario.

What testing has BluMetric's (BLMWF) water treatment system undergone?

The system underwent road and cross-country tests at 5 CDSB Gagetown, plus water challenge tests for biofouling, hardness, bacteria, virus, organic, and inorganic contaminants.

What stock options did BluMetric (BLMWF) grant to its Directors and Employees?

BluMetric granted 402,000 common share options to Directors and Employees, exercisable at $0.99 per share for seven years, vesting over two years.

Is there potential for additional orders under BluMetric's (BLMWF) Rheinmetall contract?

Yes, the contract allows for possible authorization of additional units, with three cold weather ancillary equipment packages already added since the initial announcement.