Tornado’s CustomVac Division Enters Private Label Manufacturing Agreement With Ascend Hydrovacs

Rhea-AI Summary

Tornado Infrastructure Equipment (OTCQX:TGHLF) has announced that its subsidiary CustomVac has entered into a significant private label manufacturing agreement with Ascend Hydrovacs. The agreement involves manufacturing exclusive 13-yard tipping tank hydrovac units for Ascend, with expected minimum gross revenue of CAD$88.2 million over four years starting 2026.

The deal includes an intellectual property fee of up to CAD$1.8 million payable to Tornado for co-developed hydrovac product design rights. Production will take place at CustomVac's Nisku facility, with first deliveries expected in late 2025. Additionally, Tornado's new Red Deer manufacturing campus is nearly complete, with operational efficiencies expected to begin in Q3 2025.

Positive

• Secured CAD$88.2 million minimum revenue commitment over four years
• Additional CAD$1.8 million potential IP fee revenue
• New manufacturing facility completion will increase capacity and efficiency
• Exclusive manufacturing partnership strengthens market position
• First deliveries expected in late 2025

Negative

• None.

CALGARY, Alberta, June 26, 2025 (GLOBE NEWSWIRE) -- Tornado Infrastructure Equipment Ltd. (“Tornado” or the “Company”) (TSX-V: TGH; OTCQX: TGHLF), through its wholly owned subsidiary Custom Vacuum Services Ltd. (“CustomVac”), is pleased to announce that it has entered into a private label manufacturing agreement (“Supply Agreement”) with Ascend Hydrovacs Inc. (“Ascend”), a respected brand in the Canadian hydrovac market.

Under this Supply Agreement, CustomVac will manufacture purpose-built, 13-yard tipping tank hydrovac units exclusively for Ascend, branded under Ascend’s name. The custom-built hydrovac units have been co-developed to meet Ascend’s specific operational and customer requirements.

The Supply Agreement contains a commitment for the delivery of a number of innovative, proprietary hydrovac trucks to Ascend over the next four fiscal years commencing in 2026, that are estimated to generate minimum gross revenue for Tornado in the amount of CAD$88.2 million. As part of the Supply Agreement, Ascend will pay Tornado an intellectual property fee of up to $1.8 million CAD, on a per-unit basis, in exchange for certain rights to the co-developed hydrovac product design.

“I’m excited to once again work with the ownership group of Ascend,” said Brett Newton, President and CEO of Tornado. “Their deep operational experience in service, repair, and sales has been instrumental in shaping this unique product. The collaboration reflects our mutual commitment to delivering tailored, field-tested solutions. Just as importantly, Tornado’s own capabilities continue to expand. Construction of our new shop at the Red Deer manufacturing campus is now substantially complete. We’ve begun transitioning the facility into production and expect to realize meaningful operational efficiencies and increased capacity starting in Q3 2025.”

This exclusive partnership reinforces CustomVac’s position as a leading original equipment manufacturer for private label hydrovac manufacturing and showcases CustomVac’s ability to provide turnkey engineering and manufacturing solutions. Production will be carried out at CustomVac’s state-of-the-art facility in Nisku, Alberta, with first deliveries expected later this year.

About Custom Vacuum Services Ltd.

CustomVac manufactures and services mobile, coded vacuum equipment, both truck-mounted and semi-trailer mounted, for the oil and gas, utilities, excavation, environmental and safety sectors in Canada.

CustomVac has experienced significant growth since 2022 and currently operates out of a 39,000 sq. ft. state-of-the-art manufacturing and parts facility in Nisku, Alberta. Since its inception in 2000, the company’s continued expansion has led to several increases in facility size and production capacity to meet growing demand for its vacuum equipment.

About Tornado Infrastructure Equipment Ltd.

Tornado is a pioneer and leader in the vacuum truck industry and has been a choice of utility and oilfield professionals with over 1,800 hydrovacs sold since 2008. The Company designs and manufactures hydrovac trucks as well as provides heavy duty truck maintenance operations in central Alberta. It sells hydrovac trucks to excavation service providers in the infrastructure and industrial construction and oil and gas markets. Hydrovac trucks use high pressure water and vacuum to safely penetrate and cut soil to expose critical infrastructure for repair and installation without damage. Hydrovac excavation methods are quickly becoming a standard in North America to safely excavate in urban areas and around critical infrastructure greatly reducing infrastructure damage and related fatalities.

For more information about Tornado Infrastructure Equipment Ltd., visit www.tornadotrucks.com or contact:

Brett Newton President and Chief Executive Officer Phone: (587) 802-5070 Email: bnewton@tghl.ca

Derek Li Vice President and Chief Financial Officer Phone: (403) 204-6350 Email: dli@tghl.ca

Advisory

Certain statements contained in this news release constitute forward-looking statements and future oriented financial information. These statements relate to future events. All statements other than statements of historical fact are forward-looking statements or future oriented financial information. The use of the words “anticipates”, “should”, ‘‘may”, “expected”, “expects”, “believes” and other words of a similar nature are intended to identify forward-looking statements or future oriented financial information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Tornado believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements and future oriented financial information included in this news release should not be unduly relied upon. Such statements include those with respect to:

• The anticipated ability of the Company to fulfill its obligations under the Supply Agreement with Ascend and the anticipated delivery of a number of proprietary hydrovac trucks over the term of the Supply Agreement;
• The expected minimum gross revenue under the Supply Agreement of approximately $88.2 million CAD over the next four fiscal years commencing in 2026;
• The anticipated payment of up to $1.8 million CAD, on a per-unit basis, in intellectual property fees by Ascend for the rights to the co-developed hydrovac product design;
• The anticipated continued expansion of Tornado’s own capabilities;
• The belief that this collaboration will reflect our mutual commitment to delivering tailored, field-tested solutions;
• The expectation that the partnership with Ascend will further strengthen CustomVac’s position as a leading original equipment manufacturer in private label hydrovac manufacturing;
• The expectation that production under the Supply Contract will be carried out at CustomVac’s Nisku facility and the expectation that initial deliveries will occur later this year; and
• The anticipated substantial completion of Tornado’s new shop at its Red Deer manufacturing campus, the ongoing transition of that facility into production, and the anticipated realization of meaningful operational efficiencies and increased manufacturing capacity beginning in Q3 2025.
  
  

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements or future oriented financial information. Actual results could differ materially from those anticipated in these forward-looking statements or future oriented financial information as a result of prevailing economic conditions, and other factors, many of which are beyond the control of Tornado. Although Tornado believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. The forward-looking statements and future oriented financial information contained in this news release represent Tornado’s expectations as of the date hereof and are subject to change after such date. Tornado disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.

The future oriented financial information contained in this news release was approved by management as of the date hereof and is based on certain assumptions that management believes are reasonable in the circumstances including (i) the demand for hydrovac trucks, (ii) the ability of the Company to fulfil its obligations under Supply Contract; and (iii) the anticipated price received for hydrovac trucks. The purpose of the future oriented financial information contained herein is to disclose the anticipated economic value of the Supply Contract and readers are cautioned that such information may not be appropriate for other purposes.

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

FAQ

What is the value of Tornado's (TGHLF) manufacturing agreement with Ascend Hydrovacs?

The agreement is valued at CAD$88.2 million in minimum gross revenue over four years, plus up to CAD$1.8 million in intellectual property fees.

When will Tornado (TGHLF) begin deliveries under the Ascend Hydrovacs agreement?

First deliveries are expected to begin in late 2025, with the four-year revenue commitment period starting in 2026.

What type of equipment will Tornado manufacture for Ascend Hydrovacs?

Tornado will manufacture purpose-built, 13-yard tipping tank hydrovac units exclusively for Ascend, branded under Ascend's name.

Where will Tornado (TGHLF) manufacture the hydrovac units for Ascend?

Production will be carried out at CustomVac's state-of-the-art facility in Nisku, Alberta, with additional capacity from the new Red Deer manufacturing campus.

When will Tornado's new Red Deer manufacturing facility become operational?

The new facility is substantially complete, and Tornado expects to realize operational efficiencies and increased capacity starting in Q3 2025.