FSI Inks New Contract for Food-Grade Manufacturing Business

Core Viewpoint - Flexible Solutions International, Inc. (FSI) has secured a five-year contract with a U.S.-based company to manufacture food-grade products, marking a strategic expansion into the food-grade market [1][3]. Group 1: Contract Details - The contract is for a term of five years with an automatic renewal for up to five additional successive five-year terms, unless either party provides written notice of non-renewal at least 180 days prior to the end of the current term [1]. - The manufacturing will be conducted on a non-exclusive basis for the U.S.-based company [1]. Group 2: Revenue Expectations - FSI anticipates that revenues from this contract will commence in approximately six months, following the expansion of its clean room space and installation of necessary production equipment [2]. - The projected annual revenue from this contract is estimated to be between $15 million and $30 million or more [2]. Group 3: Market Position and Growth - FSI is recognized as a leading manufacturer of biodegradable polymers for various applications, including oil extraction and water treatment, and is now expanding into the food and nutrition supplement manufacturing markets [3]. - This contract signifies FSI's commitment to establishing a strong foothold in the food-grade market and aims to attract more business in this sector [3]. Group 4: Stock Performance - FSI's shares have experienced a significant increase of 228.7% over the past year, contrasting with a 17% decline in its industry [4].