FSI ANNOUNCES SALE OF FLORIDA LLC UNITS
Flexible Solutions International (NYSE-AMERICAN: FSI) has announced the sale of units in its Florida investment for a total of $6 million, to be paid over five years. The original purchase price was $3.5 million. This transaction is expected to increase FSI's liquidity and support potential growth in its nutrition and food operations.
CEO Dan O'Brien stated that the sale will contribute to FSI's ability to take on significant contracts in the coming months. The new partner in the Florida is expected to expand sales, which could benefit FSI through a retained supply agreement. Increased sales to the Florida are anticipated to begin in the next several quarters.
Flexible Solutions International (NYSE-AMERICAN: FSI) ha annunciato la vendita di unità nel suo investimento in Florida per un totale di 6 milioni di dollari, da pagare nel corso di cinque anni. Il prezzo d'acquisto originale era di 3,5 milioni di dollari. Si prevede che questa transazione aumenti la liquidità di FSI e supporti una potenziale crescita nelle sue operazioni nel settore della nutrizione e alimentazione.
Il CEO Dan O'Brien ha dichiarato che la vendita contribuirà alla capacità di FSI di assumere contratti significativi nei prossimi mesi. Si prevede che il nuovo partner in Florida espanda le vendite, il che potrebbe avvantaggiare FSI attraverso un accordo di fornitura mantenuto. Si anticipano maggiori vendite in Florida che dovrebbero iniziare nei prossimi trimestri.
Flexible Solutions International (NYSE-AMERICAN: FSI) ha anunciado la venta de unidades en su inversión en Florida por un total de 6 millones de dólares, que se pagará durante cinco años. El precio de compra original fue de 3.5 millones de dólares. Se espera que esta transacción aumente la liquidez de FSI y apoye un crecimiento potencial en sus operaciones de nutrición y alimentos.
El CEO Dan O'Brien declaró que la venta contribuirá a la capacidad de FSI para asumir contratos significativos en los próximos meses. Se espera que el nuevo socio en Florida expanda las ventas, lo que podría beneficiar a FSI a través de un acuerdo de suministro mantenido. Se anticipan mayores ventas en Florida que deberían comenzar en los próximos trimestres.
Flexible Solutions International (NYSE-AMERICAN: FSI)는 플로리다의 투자 유닛을 총 600만 달러에 판매한다고 발표하였습니다. 이는 5년에 걸쳐 지급될 예정입니다. 원래 구매 가격은 350만 달러였습니다. 이 거래는 FSI의 유동성 증가와 영양 및 식품 사업의 잠재적 성장 지원이 기대됩니다.
CEO 댄 오브라이언은 이번 판매가 향후 몇 달 안에 FSI가 중요한 계약을 체결할 수 있는 능력에 기여할 것이라고 말했습니다. 플로리다의 새로운 파트너는 판매를 확대할 것으로 예상되며, 이는 지속적인 공급 계약을 통해 FSI에 혜택을 줄 수 있습니다. 플로리다로의 증가한 판매는 다음 몇 분기 안에 시작될 것으로 예상됩니다.
Flexible Solutions International (NYSE-AMERICAN: FSI) a annoncé la vente d'unités de son investissement en Floride pour un total de 6 millions de dollars, payable sur cinq ans. Le prix d'achat initial était de 3,5 millions de dollars. Cette transaction devrait augmenter la liquidité de FSI et soutenir une croissance potentielle dans ses opérations de nutrition et d'alimentation.
Le PDG Dan O'Brien a déclaré que cette vente contribuera à la capacité de FSI à prendre des contrats significatifs dans les mois à venir. Le nouveau partenaire en Floride devrait augmenter les ventes, ce qui pourrait bénéficier à FSI par le biais d'un accord de fourniture maintenu. Une augmentation des ventes en Floride est prévue pour commencer dans les prochains trimestres.
Flexible Solutions International (NYSE-AMERICAN: FSI) hat den Verkauf von Einheiten in seiner Investition in Florida für insgesamt 6 Millionen Dollar angekündigt, die über fünf Jahre hinweg gezahlt werden. Der ursprüngliche Kaufpreis betrug 3,5 Millionen Dollar. Es wird erwartet, dass diese Transaktion die Liquidität von FSI erhöht und potenzielle Wachstumschancen in seinen Ernährungs- und Lebensmitteloperationen unterstützt.
CEO Dan O'Brien erklärte, dass der Verkauf zur Fähigkeit von FSI beitragen wird, in den kommenden Monaten bedeutende Verträge zu übernehmen. Der neue Partner in Florida wird voraussichtlich die Verkaufszahlen erhöhen, was FSI durch eine aufrechterhaltene Liefervereinbarung zugutekommen könnte. Erhöhte Verkäufe in Florida werden im kommenden Quartal erwartet.
- Sale of Florida units for $6 million, resulting in a $2.5 million profit over the original purchase price
- Increased liquidity to support potential growth in nutrition and food operations
- Retained supply agreement with Florida , potentially leading to increased sales
- Full payment for the sale will be received over a five-year period, potentially impacting immediate cash flow
Insights
The sale of Florida units marks a significant financial move for FSI, yielding a 71% return on investment over five years. The
FSI's decision to sell its Florida units while maintaining a supply agreement is a clever market positioning move. By partnering with an entity capable of expanding sales, FSI stands to benefit from increased demand without the associated operational costs. This arrangement could lead to a win-win situation, where FSI's products gain wider market penetration through the new partner's efforts. The anticipated sales growth to the Florida in the coming quarters suggests a positive outlook for FSI's revenue stream. Investors should watch for signs of this materialization, as it could indicate stronger market positioning and potentially higher valuation for FSI in the medium term.
The structure of this transaction—combining an upfront payment with deferred annual payments—is a prudent legal approach. It mitigates risk for both parties and ensures FSI's continued interest in the 's success. The retained supply agreement is a important legal component, safeguarding FSI's ongoing relationship with the However, investors should be aware that such agreements often come with performance clauses and potential liabilities. It would be advisable for FSI to disclose any material terms of this supply agreement that could impact future earnings. Additionally, the five-year payment plan introduces a level of counterparty risk that shareholders should consider when evaluating the long-term value of this deal.
VICTORIA, BRITISH COLUMBIA, Aug. 12, 2024 (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. Today the Company announces the sale of units of the Florida LLC we invested in more than five years ago.
The terms of the sale are
Dan O’Brien, CEO, comments, “This transaction increases FSI’s liquidity at a time when strong potential exists in our nutrition and food operations. It will contribute to our ability to take on significant contracts that may appear in the next several months.”
CEO O’Brien continues, “At the same time, the new partner in the Florida LLC has plans and the skills to expand sales over the next several years. This will be beneficial to FSI as we have retained a supply agreement with the LLC. It is expected that the change in ownership will result in increased sales to the Florida LLC beginning in the next several quarters.”
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
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FAQ
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