Retractable Technologies, Inc. to Receive Additional Funding From U.S. Government Under Technology Investment Agreement

Rhea-AI Summary

Retractable Technologies Inc. (NYSE American: RVP) has amended its Technology Investment Agreement with the U.S. government, securing an additional $27.4 million in funding. This increase aims to boost domestic manufacturing capabilities by at least 50% to meet ongoing COVID-19 countermeasure demands. The funding will be used to expand production of 1mL low dead-space safety syringes by adding new assembly lines and expanding facilities in Little Elm, Texas. The modification effort is scheduled to be completed by January 31, 2022.

Positive

• Secured an additional $27.4 million in funding from the U.S. government.
• Targeting a 50% increase in manufacturing capabilities for safety syringes.
• Expansion of production facilities in Little Elm, Texas, enhances future operational capacity.

Negative

• Deadline for production enhancement is approaching, with completion required by January 31, 2022.
• Potential risks related to COVID-19 affecting logistics and operations.
• Uncertainties regarding maintaining liquidity and favorable supplier arrangements.

Retractable Technologies Inc. (NYSE American: RVP) announced today that it has entered into an amendment to the Technology Investment Agreement (originally awarded on July 1, 2020) with the U.S. government providing $27,365,232 in additional funding. The amendment calls for an increase in existing domestic manufacturing capabilities by a minimum of 50 percent in order to meet ongoing and future U.S. COVID-19 medical countermeasures demands. In order to satisfy this new objective, Retractable is directed to increase U.S. production of 1mL low dead-space safety syringes by installing new assembly lines and further expanding a portion of its facilities in Little Elm, Texas. The scheduled end date for the modification effort is January 31, 2022.

Under the Technology Investment Agreement signed in July 2020, the Biomedical Advanced Research and Development Authority, part of the Office of the Assistant Secretary for Preparedness and Response at the U.S. Department of Health and Human Services worked with the Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense and the Army Contracting Command to provide approximately $53.6 million to expand Retractable’s manufacturing capacity for safety needles and syringes in support of the COVID-19 pandemic.

For more information on Retractable, visit its website at www.retractable.com.

Forward-looking statements in this press release are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and reflect Retractable's current views with respect to future events. Retractable believes that the expectations reflected in such forward-looking statements are accurate. However, Retractable cannot assure you that such expectations will materialize. Actual future performance could differ materially from such statements.

Factors that could cause or contribute to such differences include, but are not limited to: the impact of COVID-19 on all facets of logistics and operations, as well as costs, Retractable’s ability to complete capital improvements and ramp up domestic production in response to government agreements, potential tariffs, Retractable's ability to maintain liquidity; Retractable's maintenance of patent protection; Retractable's ability to maintain favorable third party manufacturing and supplier arrangements and relationships; foreign trade risk; Retractable's ability to access the market; production costs; the impact of larger market players in providing devices to the safety market; and other risks and uncertainties that are detailed from time to time in Retractable's periodic reports filed with the U.S. Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210525005931/en/

FAQ

What is the recent funding amount Retractable Technologies received?

Retractable Technologies received an additional $27.4 million in funding from the U.S. government.

When is the deadline for the manufacturing increase for Retractable Technologies?

The deadline for the manufacturing increase is January 31, 2022.

What percentage increase in manufacturing capabilities is Retractable Technologies aiming for?

Retractable Technologies aims for a 50% increase in manufacturing capabilities.

What type of syringes is Retractable Technologies expanding production for?

Retractable Technologies is expanding production for 1mL low dead-space safety syringes.

Where is Retractable Technologies' production facility located?

The production facility is located in Little Elm, Texas.