Ocean Bio-Chem Expands Production of COVID-19 Approved Disinfectant Performacide®

Rhea-AI Summary

Ocean Bio-Chem, Inc. (OBCI) announced on August 3, 2020, that its subsidiary Kinpak Inc. has initiated a third production line for its disinfectant Performacide®, an EPA-registered product effective against the SARS-CoV-2 virus. CEO Peter Dornau expects increased sales in Q3 2020 due to enhanced manufacturing capabilities, which have tripled since the year's start. The expansion is funded through the company's 2017 Industrial Development Bond proceeds, ensuring strong working capital. Performacide® is known for its broad spectrum of efficacy against viruses and bacteria.

Positive

• Third production line for Performacide® operational, expected to increase sales.
• Manufacturing capacity of Performacide® has tripled since the start of 2020.
• Expansion funded through existing Industrial Development Bond proceeds, indicating strong working capital.

Negative

• None.

FORT LAUDERDALE, Fla., Aug. 3, 2020 /PRNewswire/ -- Ocean Bio-Chem, Inc. (NASDAQ: OBCI) announced today that its subsidiary, Kinpak Inc., has commissioned a third production line for the manufacturing of its disinfectant/sanitizer product group Performacide^®.  Performacide^® is an EPA-registered disinfectant that kills the SARS-CoV-2 virus, the cause of COVID-19, on hard surfaces.

Peter Dornau, President and CEO commented:  "With the third production line fully operational we anticipate increased sales of Performacide^® in the third quarter compared to the second quarter of 2020.

The increased capacity will help us fulfill the backlog of orders and go after additional new sales opportunities. Since the beginning of the year the Company has tripled its manufacturing capabilities of Performacide^® to meet sales demands."

Mr. Dornau concluded: "The working capital of our Company continues to be strong. Furthermore, the funding of the manufacturing expansion has already been provided with the Company's 2017 Industrial Development Bond proceeds."

About the product: PERFORMACIDE^® is a point-of-use, Chlorine Dioxide (ClO₂) generating pouch system. When the patented pouch is immersed in water, it creates an EPA-registered solution that is approved for use on emerging viruses, including SARS-CoV-2.  PERFORMACIDE^® is a pharmaceutical-grade disinfectant, sanitizer, tuberculocide, virucide, fungicide and deodorizer.

About Ocean Bio-Chem, Inc.

Ocean Bio-Chem, Inc. manufactures, markets and distributes a broad line of appearance and maintenance products for the marine, automotive, power sports, recreational vehicle and outdoor power equipment markets under the brand names Star brite^®, Star Tron^®, Performacide^® and OdorStar^® within the United States and Canada.  In addition, the Company produces private label formulations of many of its products for various customers and provides custom blending and packaging services for these and other products.

The Company's web sites are: www.oceanbiochem.com, www.starbrite.com, www.startron.com and www.performacide.com

Forward-looking Statements:

Certain statements contained in this Press Release, including without limitation, our sales projections of Performacide^® in the third quarter of 2020, increased production of Performacide^® and continued strong order pace constitute forward-looking statements.  For this purpose, any statements contained in this report that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "believe," "may," "will," "expect," "anticipate," "intend," or "could," including the negative or other variations thereof or comparable terminology, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those expressed or implied by such forward-looking statements. Factors that may affect these results include, but are not limited to, the highly competitive nature of our industry; reliance on certain key customers; changes in consumer demand for marine, recreational vehicle and automotive products; advertising and promotional efforts; exposure to market risks relating to changes in interest rates, foreign exchange rates, prices for raw materials that are petroleum or chemical based and other factors addressed in Part I, Item 1A ("Risk Factors") in our annual report on Form 10-K for the year ended December 31, 2019.

Contact:

Peter Dornau 
CEO & President 
pdornau@starbrite.com
954-587-6280

Jeff Barocas
CFO & Vice President
jbaroocas@starbrite.com 
954-587-6280

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SOURCE Ocean Bio-Chem, Inc.

FAQ

What is Ocean Bio-Chem's latest announcement regarding Performacide®?

Ocean Bio-Chem announced the commissioning of a third production line for Performacide®, which is effective against the SARS-CoV-2 virus.

When did Ocean Bio-Chem announce the expansion of Performacide® production?

The announcement was made on August 3, 2020.

How has Ocean Bio-Chem's manufacturing capability changed in 2020?

The company has tripled its manufacturing capabilities for Performacide® since the beginning of the year.

What are the expectations for Performacide® sales in Q3 2020?

CEO Peter Dornau anticipates increased sales of Performacide® in Q3 2020 compared to Q2 2020.

How is the expansion of Performacide® production funded?

The funding for the production expansion comes from the company's 2017 Industrial Development Bond proceeds.