FSI ANNOUNCES NEW CONTRACT FOR FOOD GRADE MANUFACTURING
Rhea-AI Summary
Flexible Solutions International (FSI) has signed a significant new contract with a US-based company for food grade manufacturing. The five-year contract, signed on January 7, 2025, includes automatic renewals for up to five additional five-year terms, unless either party provides notice of non-renewal 180 days before term end.
The contract is expected to generate annual revenue between $15 million and $30 million or more. Revenue generation is anticipated to begin in approximately six months, following the expansion of clean room space and installation of necessary equipment at FSI's Illinois facility.
This non-exclusive agreement represents FSI's strategic expansion into the food grade market, building upon their existing portfolio in biodegradable polymers for oil extraction, detergent ingredients, water treatment, and crop nutrient availability chemistry.
Positive
- New contract potentially worth $15-30M+ annually
- Long-term agreement spanning up to 30 years (5 years + five 5-year renewals)
- Strategic expansion into food grade manufacturing market
- Revenue generation to begin in approximately 6 months
Negative
- Capital expenditure required for clean room expansion and equipment
- 6-month delay before revenue generation begins
- Non-exclusive contract terms
News Market Reaction
On the day this news was published, FSI gained 52.85%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
VICTORIA, BRITISH COLUMBIA, Jan. 16, 2025 (GLOBE NEWSWIRE) -- FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE-AMERICAN: FSI), is the developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients and water treatment as well as crop nutrient availability chemistry. Flexible Solutions also manufactures biodegradable and environmentally safe water and energy conservation technologies. FSI is also increasing its presense in the food and nutrition supplement manufacturing markets. Today the Company announces the signing of a new contract for food grade manufacturing.
FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE Amex: FSI) announces that, on January 7, 2025, it contracted with a US based company to manufacture food grade products for the U.S. based company on a non-exclusive basis. The contract has a term of five years and will automatically renew for up to five additional successive five year terms unless FSI or the U.S. based company provides written notice of a non-renewal at least 180 days prior to the end of the then-current term. FSI estimates that the contract can possibly generate revenue per year between
Dan O'Brien, CEO comments, "This is a very significant contract that could provide revenue for many years. It is confirmation that our decision to enter the food grade market was correct and it is a strong base to build on as we work to obtain more business selling food grade products to US customers." Mr. O'Brien continues, "This contract was not easy to obtain. From myself on down to the factory personnel in Illinois, we had to focus on what the customer wanted and how to provide it efficiently to very high quality specifications. I'm proud of the FSI team and what they have achieved."
About Flexible Solutions International
Flexible Solutions International, Inc. (www.flexiblesolutions.com), based in Victoria, British Columbia, is an environmental technology company. The Company’s NanoChem Solutions Inc. subsidiary specializes in biodegradable, water-soluble products utilizing thermal polyaspartate (TPA) biopolymers. TPA beta-proteins are manufactured from the common biological amino acid, L-aspartic and have wide usage including scale inhibitors, detergent ingredients, water treatment and crop enhancement. Along with TPA, this division started producing other crop enhancement products as well. In 2022, the Company entered the food and nutrition markets by obtaining FDA food grade approval for the Peru IL plant. The other divisions manufacture energy and water conservation products for drinking water, agriculture, industrial markets and swimming pools throughout the world
Safe Harbor Provision
The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward looking statement with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.
Flexible Solutions International
6001 54th Ave, Taber, Alberta, CANADA T1G 1X4
Company Contacts
Jason Bloom
Toll Free: 800.661.3560
Fax: 403.223.2905
Email: info@flexiblesolutions.com
To find out more information about Flexible Solutions and our products please visit www.flexiblesolutions.com
If you have received this news release by mistake or if you would like to be removed from our update list please reply to: info@flexiblesolutions.com
FAQ
How much revenue will FSI's new food grade manufacturing contract generate annually?
When will FSI begin generating revenue from the new food grade manufacturing contract?
What is the duration of FSI's new food grade manufacturing contract?
What facility modifications will FSI make for the new manufacturing contract?
Is FSI's new food grade manufacturing contract exclusive?
