KRONOS ADVANCED TECHNOLOGIES ANNOUNCES CLOSING OF ACQUISITION OF ITS FIRST MANUFACTURING FACILITY IN WEST VIRGINIA, EXPANDING HI-TECH AIR PURIFICATION PRODUCTION CAPABILITIES
Parkersburg, WV, April 27, 2022 (GLOBE NEWSWIRE) -- Kronos Advanced Technologies, Inc., (OTC: KNOS), revenue-generating product development and production company that has significantly changed the way indoor air is filtered and disinfected, today announced its financial closing on the acquisition of an 85,000 square-foot manufacturing campus located in Parkersburg, West Virginia. As previously announced, the facility, which for the past 25 years designed and produced advanced electronics containing high-density circuit boards for aviation, military, industrial, and medical products, will be modified to produce advanced air purification devices and other wellness products based on Kronos' Disease-Free living concept.
"Nearly two years ago, we set into motion a strategic plan to transform Kronos from a marketing and fulfillment company, positioned within the fragmented market space of Air Purification, into a globally dominant consumer product design and manufacturing Company. Our vision is for Kronos to become a household recognized, customer-centric design and manufacturing company providing products that improve the Human Condition by enhancing the air we breathe, the Water we drink, the Food we eat, and the Environment we live in. This acquisition is a key foundational milestone in our transformation", said Joseph Florence Kronos COO, and CTO.
"We have invested significant capital and management resources finding the right location for our first design and manufacturing campus. The job possibility is enormous for the community of Parkersburg. This community has a long history of providing a competitive location for manufacturers, and we are proud to now be in the great state of West Virginia. We are developing the manufacturing workplace of the future—from our development of Industry 4.0 next-generation robotic manufacturing processes to our Lean and collaborative work environment. We are poised to succeed", said Mr. Florence.
"This acquisition includes a 10-acre campus, containing both warehouses and a 62,000 square foot manufacturing facility having all infrastructure and equipment to begin contract assembly immediately, as well as the manufacturing of Kronos owned products. The acquired manufacturing campus is located within a day's drive of 1/2 of the USA population and 1/3 of the Canadian market. This demographic represents a significant portion of our future customers. Kronos is confident that this acquisition will enable us to focus on the efficient fulfillment of our current product line, the utilization of our recently acquired equipment to begin offering contract manufacturing services, and the ability to initiate the transition of our conceptual designs into production", said Mr. Florence.
The new facility will become the Company's first manufacturing plant in the U.S. and is expected to bring about 300 new jobs to the area when production is planned to begin in June 2022. As Kronos continues to expand its operations, we appreciate the financial help and partnership with the WVEDA (West Virginia Economic Development Agency) and the future support of the city of Parkersburg and look forward to being an active member of their business community.
This acquisition was for a total amount of $5.8 million. The state of West Virginia provided $2.6 million in financing under West Virginia Economic Development Direct Loan Program. The remaining financing came as an equity contribution that provided Kronos with $3.2 million in real estate equity.
Also, the State of West Virginia provides many additional benefits like:
Corporate Headquarters Credit:
Companies that relocate their corporate headquarters to West Virginia are eligible for tax credits if 15 new jobs (including relocated employees) are created within the first year. The credit can offset up to 100% of the tax liability for business and occupation tax, corporate net income tax, and personal income tax on specific pass-through income for up to 13 years.
High-Tech Manufacturing Credit:
Businesses that manufacture certain computers and peripheral equipment, electronic components, or semiconductors and which create at least 20 new jobs within one year after placement of qualified investment into service can receive a tax credit to offset 100% of the corporate net income tax and personal income tax on certain pass-through income for 20 consecutive years.
Manufacturing Investment Credit:
A tax credit is allowed against up to 60% of corporate net income tax and based on qualified investment in eligible manufacturing property, with no new job creation required.
Sales Tax Exemption for Certain E-Commerce Businesses:
Some computer-related sales of tangible personal property and services are exempt from the consumer sales and services tax.
Monies for employee training and onboarding assistance.
In Summary, West Virginia will genuinely prove to be a competitive advantage for Kronos Advanced Technologies Inc.
To support or further validate our strategic plan, one can look to the recent White House announcement known as The Biden-Harris Plan to Revitalize American Manufacturing and Secure Critical Supply Chains in 2022.
One of the key points of the plan is to Bolster the American manufacturing of critical goods through new reforms under the Buy American Act. President Biden believes that when the U.S. government spends Federal dollars, it should buy American-made products. During his first week in office, he issued Executive Order 14005 to close loopholes and raise standards in the Buy American rules that govern Federal contracts. The White House Office of Management and Budget will soon issue a new Buy American rule that will create a new category of critical products that will be eligible for enhanced price preferences. By allowing the Federal government to pay an additional premium for critical domestic-made products and components essential to the Administration's supply chain resiliency strategy, the new rule will create a steady source of demand that will help catalyze domestic production and bolster thin supply chains. Once implemented, American manufacturers will have an easier time securing the government contracts they need to expand their operations and create good-paying jobs.