Silynxcom Secures up to $2 Million Multi-Year Contract for Advanced In-Ear Communication Systems to the Finnish Police

Rhea-AI Summary

Silynxcom (NYSE American: SYNX) has secured a four-year framework contract to supply advanced in-ear communication systems to the Finnish Police, with an estimated value between $1.2 million and $2 million. The contract was won through an international public tender and will be facilitated by Silynxcom's local Finnish distributor.

The agreement includes the delivery of new-generation Tetra-compatible Clarus systems featuring high-noise protection and the company's unique 'talking from the ear' technology with enhanced situational awareness. An initial order has already been received under this contract.

This win positions Silynxcom strategically in the Nordic defense market, particularly in Finland's modernization process market.

Positive

• Secured new contract worth up to $2 million over four years
• Initial order already received from Finnish Police
• Strategic entry into Nordic defense market
• Demonstrated competitive advantage by winning international tender

Negative

• None.

Insights

Defense Technology Analyst

<p>The <money>$2 million</money> Finnish Police contract marks a strategic entry into the Nordic defense market for Silynxcom. The Clarus system's integration of Tetra compatibility and "talking from the ear" technology addresses specific European communication standards while offering tactical advantages through enhanced situational awareness. For a micro-cap company with an <money>$18.5 million</money> market value, this contract represents approximately <percent>10.8%</percent> of their market capitalization, making it a material win.</p><p>The four-year framework structure suggests potential for expanded orders and creates a strong reference customer in the Nordic region. Finland's ongoing military modernization efforts, accelerated by regional geopolitical tensions, could position Silynxcom for additional law enforcement and defense contracts in neighboring countries like Sweden and Norway, which share similar operational requirements and procurement standards.</p>

Government Procurement Specialist

<p>The successful international tender win against established competitors demonstrates Silynxcom's competitive pricing strategy and technical capabilities. The flexible contract value between <money>$1.2-2 million</money> reflects a sophisticated pricing model that accommodates various system configurations, suggesting strong margin potential depending on component selection. The immediate initial order validates the Finnish Police's commitment and could accelerate revenue recognition.</p><p>European public safety contracts typically involve rigorous testing and compliance requirements. Securing this contract establishes credibility for future European public sector opportunities. The deal's structure as a framework agreement is particularly valuable, as it streamlines future procurement processes and can lead to additional orders without new tender requirements.</p>

Silynxcom won an international public tender to secure the prestigious contract

Netanya, Israel, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Silynxcom Ltd. (NYSE American: SYNX) (“Silynxcom” or the “Company”), a manufacturer and developer of ruggedized tactical communication headset devices, announced today that it had signed a four-year framework contract, facilitated by Silynxcom’s local distributor in Finland, to supply advanced in-ear communication systems to the national police of Finland. The systems provided are of Silynxcom’s new-generation Tetra-compatible, high-noise protection Clarus systems, combined with Silynxcom’s unique “talking from the ear” technology, which incorporates enhanced situational awareness.

The total value of the agreement is estimated to be between $1.2 million and $2 million, depending on the components selected for each system. An initial order has already been received as part of this contract.

This significant win underscores Silynxcom’s growing global presence and its ability to outperform competitors in the highly competitive Nordic market.

Expanding Opportunities in Nordic Defense Market

This agreement represents a prestigious win and positions Silynxcom for future opportunities in the rapidly growing Nordic modernization process market in the defense sector, and particularly in the Finnish market.

“This agreement demonstrates our ability to deliver cutting-edge solutions at competitive prices,” said Nir Klein, Chief Executive Officer of Silynxcom. “Securing this contract with the Finnish Police reinforces our commitment to providing reliable and innovative communication systems that enhance safety and operational efficiency.”

Silynxcom’s in-ear communication systems are designed to offer advanced hearing protection while maintaining clear communication capabilities, making them ideal for law enforcement and defense applications in high-noise environments.

About Silynxcom Ltd.

Silynxcom Ltd. develops, manufactures, markets, and sells ruggedized tactical communication headset devices as well as other communication accessories, all of which have been field-tested and combat-proven. The Company’s in-ear headset devices, or In-Ear Headsets, are used in combat, the battlefield, riot control, demonstrations, weapons training courses, and on the factory floor. The In-Ear Headsets seamlessly integrate with third party manufacturers of professional-grade ruggedized radios that are used by soldiers in combat or by police officers in leading military and law enforcements units. The Company’s In-Ear Headsets also fit tightly into the protective gear to enable users to speak and hear clearly and precisely while they are protected from the hazardous sounds of combat, riots or dangerous situations. The sleek, lightweight, In-Ear Headsets include active sound protection to eliminate unsafe sounds, while maintaining ambient environmental awareness, giving their customers 360° situational awareness. The Company works closely with its customers and seek to improve the functionality and quality of the Company’s products based on actual feedback from soldiers and police officers “in the field.” The Company sells its In-Ear Headsets and communication accessories directly to military forces, police and other law enforcement units. The Company also deals with specialized networks of local distributors in each locale in which it operates and has developed key strategic partnerships with radio equipment manufacturers.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws and are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. For example, the Company uses forward-looking statements when it discusses: the contingent value of the contract; the belief that this contract underscores Silynxcom’s growing global presence and its ability to outperform competitors in the highly competitive Nordic market; the belief that this contract represents a prestigious win and positions Silynxcom for future opportunities in the rapidly growing Nordic modernization process market in the defense sector, and particularly in the Finnish market; the belief that this contract demonstrates the Company’s ability to deliver cutting-edge solutions at competitive prices; and that securing this contract reinforces the Company’s commitment to providing reliable and innovative communication systems that enhance safety and operational efficiency. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 30, 2024, and other documents filed with or furnished to the SEC which are available on the SEC’s website, www.sec.gov. The Company cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

INVESTOR RELATIONS CONTACTS:

Michal Efraty
IR Manager
ir@silynxcom.com

FAQ

What is the value of Silynxcom's (SYNX) contract with the Finnish Police?

The contract value is estimated between $1.2 million and $2 million, depending on the components selected for each system.

What type of communication systems will Silynxcom (SYNX) provide to Finnish Police?

Silynxcom will provide new-generation Tetra-compatible Clarus systems with high-noise protection and 'talking from the ear' technology featuring enhanced situational awareness.

How long is the duration of Silynxcom's (SYNX) Finnish Police contract?

The framework contract has a duration of four years.

Has Silynxcom (SYNX) received any orders under the new Finnish Police contract?

Yes, Silynxcom has already received an initial order as part of this contract.

What market opportunity does the Finnish Police contract create for Silynxcom (SYNX)?

The contract positions Silynxcom for future opportunities in the rapidly growing Nordic modernization process market, particularly in the Finnish defense sector.