Nanalysis Scientific Corp. Announces $160 Million Multi Year Contract Win
Calgary, Alberta, May 26, 2022 Nanalysis Scientific Corp. (TSXV:NSCI, OTCQX:NSCIF, FRA:1N1) (“Nanalysis” or the “Company”) announces that the Company’s wholly-owned subsidiary K’(Prime) Technologies (KPrime) has won a six year $160 million service and maintenance contract with Canadian Air Transportation Security Authority (“CATSA”), which includes a gradual phase in period of approximately one year. Furthermore, it is common for these types of contracts to be renewed for an additional five years, making it a potential 11 year recuring revenue opportunity, with inflation-based contractual price increases. The effective date of the executed contract is May 25, 2022 and it expires on May 31, 2028.
“We are pleased to have won this contract to support imaging and other security screening equipment at all airports across Canada,” said Sean Krakiwsky, Founder and Chief Executive Officer of Nanalysis. “The security market is a very important vertical for all our products, including benchtop NMR, and it is our vision to have direct sales and service capabilities in every major market in the world. This contract win is an instrumental step in simultaneously opening up the security vertical as well as adding a material recurring revenue stream to our business. In addition to world-class R&D and manufacturing, we are now a world-class equipment service provider. We expect to expand this business in the security vertical, globally, as part of our growth plans going forward.”
KPrime has begun the phase in process for this project to airports across Canada, and the company anticipates the service coverage to be completed before the end of Q1, 2023.
Martin Corrigan, Vice President and CTO of CATSA states: “We look forward to working with KPrime as they assume the maintenance service responsibilities for our of large fleet of screening equipment across the country.”
Kham Lin, Founder and President of KPrime and Managing Director of Nanalysis’ Security Business, states: “We have been positioning KPrime to win this contract for several years but needed to be part of a larger organization to conduct business of this size. This contract win is one example of how Nanalysis + KPrime will enable larger business opportunities and value creation for shareholders. We currently provide service in airports and other security markets, and so we are well positioned to expand this business. This business also opens sales channels for Nanalysis’ proprietary products going forward. Because of our experience with these types of service contracts, we are very confident in our ability to successfully implement and profitably manage this world-class project.”
Airports, border crossings, prisons, and other security markets are expected to be important growth drivers for Nanalysis over the next five years and beyond. Nanalysis’ vision is to build a fully vertically integrated global scientific instrumentation company, serving customers in the security, pharma, biotech, food, energy, advanced materials, petrochemical, healthcare, and education markets with imaging and detection products and service. The company will continue to expand direct sales, service, and channel management capabilities world-wide, and will also strengthen technology partnerships, as well as develop important supply chain risk-mitigation and technology differentiation capabilities as geo-political landscape evolves, ensuring the ability to continue to drive growth and create shareholder value.
