Tuesday, January 30, 2024 9:06:33 AM
Phase-In of Canada-Wide Coverage at All 89 Designated Airports Completed on January 11, 2024
CALGARY, AB, January 30, 2024 Nanalysis Scientific Corp. (“the Company” or “Nanalysis”, TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1), a leader in portable NMR machines, MRI technology for industrial and research applications, and detection equipment services, gives an update on its subsidiary K’(Prime) Technologies (“KPrime”) security services business and the five-year $160 million contract with Canadian Air Transport Security Authority (“CATSA”).
Completion of the CATSA Project Rollout
Sean Krakiwsky, Founder and CEO of Nanalysis, states: “With the announcement of the award of the CATSA contract back in May of 2022 to the Company’s subsidiary KPrime, we significantly expanded our Security Services business, which, over time, will increase our capability to support our proprietary products in NMR and MRI technology. At the time of the award, we announced that there was an initial phase-in period for the project. This period involved our team hiring and training over 100 technicians and taking over all preventative and corrective maintenance services for passenger screening equipment at 89 airports in Canada from the incumbent service provider. We are happy to report we are through that phase-in period and are now in control of the basic service and maintenance of all 89 airports in Canada. The focus now is to start working on the backlog of additional projects and requirements that CATSA has for us. We will do this with the same workforce, and therefore, we are in a phase of the contract whereby the costs level off and revenue is expected to increase substantially.”
“Having now taken over all preventative and corrective maintenance services for CATSA, we expect the project to begin generating positive EBITDA in Q1 2024*. As fixed costs have flattened while revenues are ramping up, I expect to maximize EBITDA throughout 2024 and for years to come.”
Denis Perron, Senior Director, Screening Technology at CATSA, states: “We have been very pleased with KPrime’s progress and congratulate them on achieving this important milestone through their ongoing commitment to building a very capable service team across Canada.”
Sime Buric, President of KPrime, a subsidiary of Nanalysis, states: “I am very proud of everyone within the organization that worked tirelessly on this project. The team has been hard at work, in collaboration with CATSA, CATSA’s equipment manufacturers, and the exiting incumbent service provider, to reach this major milestone. The team is adaptive and continuously looks for improvements. This approach will position us to expand the capabilities and opportunities for our Security Services business with other customers and partners.”
Project Highlights:
*Project EBITDA: As of January 2024, with the phase-in period's completion, the project is expected to generate positive EBITDA in Q1 2024, excluding final one-time training costs which will end March 31, 2024. EBITDA is expected to grow through 2024 and provide a stepped-up EBITDA contribution for the rest of the contract. Please see the note below regarding one-time and ongoing training obligations.
Fully Executed Cutover Plan as of January 11, 2024: As a result of the hard and relentless work of the KPrime leadership team and local technicians, and with the support of CATSA’s equipment manufacturers and the incumbent service provider, KPrime has now assumed all maintenance responsibilities for CATSA’s fleet of imaging and detection equipment across all of Canada.
Canada-Wide Coverage: KPrime now performs maintenance of CATSA imaging and detection equipment at all 89 designated airports and is now also providing additional authorized work support to CATSA.
Training costs: Initial training costs for staff maintenance certifications were substantial in the phase-in period. While the Company has taken over all 89 airports, it is still expecting some initial training to occur in the first quarter of 2024 for its most recently hired team members. After completion of initial training, the Company expects lower ongoing training costs commensurate with ordinary staff turnover and ongoing certification maintenance.
About Nanalysis Scientific Corp. (TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1)
Nanalysis Scientific Corp. operates two primary businesses: Scientific Equipment and Security Services. Within its Scientific Equipment business is what the Company terms "MRI and NMR for industry". The Company develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial markets. The NMReady-60™ was the first full-feature portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens. The Company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. In 2020, the Company announced the launch of its 100MHz device, the most powerful and most advanced compact NMR device ever brought to market.
The Company’s devices are used in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, law enforcement, and more) as well as numerous government and university research labs around the world. The Company continues to exploit new global market
opportunities independently and with partners. With its partners, the Company provides scientific equipment sales and maintenance services globally.
In 2022, through its subsidiary KPrime, the Company was awarded a five-year, $160 million contract with CATSA to provide maintenance services for passenger screening equipment in Canadian airports. This has resulted in the expansion of the Company’s Security Services business. The Company is providing airport security equipment maintenance services for CATSA in each province and territory of Canada. In addition, the Company provides commercial security equipment installation and maintenance services to a variety of customers in North America.
Notice regarding Forward Looking Statements and Legal Disclaimer
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Matthew Selinger
Firm IR Group
415-572-8152
mselinger@firmirgroup.com or matthew.selinger@nanalysis.com
View this email in your browser
Copyright © 2020 Nanalysis Scientific Corp., All rights reserved.
Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.
Website
Recent NSCI News
- Nanalysis Announces Fourth Quarter and Full Year 2023 Results • PR Newswire (Canada) • 04/29/2024 08:05:00 PM
- /C O R R E C T I O N -- Nanalysis Scientific Corp./ • PR Newswire (Canada) • 04/24/2024 12:30:00 PM
- Nanalysis Announces Full Year 2023 Conference Call • PR Newswire (Canada) • 04/11/2024 12:30:00 PM
- Nanalysis Scientific Corp. Announces Director Resignation • PR Newswire (Canada) • 04/10/2024 01:55:00 PM
- AI Revolutionizes Drug Detection with Compact NMR and Machine Learning • AllPennyStocks.com • 04/04/2024 02:30:00 PM
- Nanalysis Corp. Receives Funding Supporting AI Software Development for Detection of Illicit Substances • PR Newswire (Canada) • 04/04/2024 12:30:00 PM
- NANALYSIS ANNOUNCES CLOSING OF PREVIOUSLY ANNOUNCED BEST EFFORTS PROSPECTUS EXEMPT OFFERING PURSUANT TO THE LISTED ISSUER EXEMPTION AND CONCURRENT PRIVATE PLACEMENT • PR Newswire (Canada) • 03/20/2024 01:32:00 PM
- L'Organisme canadien de réglementation des investissements permet la reprise de la négociation - NSCI • PR Newswire (Canada) • 03/06/2024 09:17:00 PM
- Canadian Investment Regulatory Organization Trade Resumption - NSCI • PR Newswire (Canada) • 03/06/2024 09:15:00 PM
- Suspension de la négociation par l'Organisme canadien de réglementation des investissements - NSCI • PR Newswire (Canada) • 03/06/2024 09:10:00 PM
- Canadian Investment Regulatory Organization Trading Halt - NSCI • PR Newswire (Canada) • 03/06/2024 09:07:00 PM
- NANALYSIS ANNOUNCES UP TO $5.0 MILLION BEST EFFORTS PROSPECTUS EXEMPT OFFERING PURSUANT TO THE LISTED ISSUER EXEMPTION AND UP TO $1.0 MILLION CONCURRENT PRIVATE PLACEMENT • PR Newswire (Canada) • 03/06/2024 09:00:00 PM
- Nanalysis Announces Upcoming Webinar and Conference Participation • PR Newswire (Canada) • 02/07/2024 01:30:00 PM
- Nanalysis Achieves Record Revenue in Q4 • PR Newswire (Canada) • 02/06/2024 01:30:00 PM
- Nanalysis Scientific Corp. Provides Update on Security Services Business • PR Newswire (Canada) • 01/30/2024 01:30:00 PM
- Nanalysis Scientific Corp. Announces Grant of Restricted Share Units • PR Newswire (Canada) • 01/04/2024 12:11:00 AM
- Nanalysis Reports Third Quarter 2023 Results • PR Newswire (Canada) • 11/29/2023 10:19:00 PM
- Nanalysis Announces Third Quarter 2023 Conference Call • PR Newswire (Canada) • 11/15/2023 01:30:00 PM
- Nanalysis to Present at the Planet MicroCap Showcase: VANCOUVER 2023 on Wednesday, September 6, 2023 & 1x1 Meetings on Thursday, September 7, 2023 • PR Newswire (Canada) • 08/30/2023 12:30:00 PM
- Nanalysis Reports Second Quarter 2023 Results • PR Newswire (Canada) • 08/24/2023 08:05:00 PM
- Nanalysis Announces Second Quarter 2023 Conference Call • PR Newswire (Canada) • 08/15/2023 12:30:00 PM
- TSX Venture Exchange Stock Maintenance Bulletins • PR Newswire (Canada) • 06/30/2023 10:23:00 PM
- Nanalysis Enters into New Credit Facility with ATB Financial • PR Newswire (Canada) • 06/29/2023 11:40:00 PM
- Nanalysis To Be Featured on Radius Research's Pitch, Deep Dive and Q&A Webinar • PR Newswire (Canada) • 06/20/2023 08:05:00 PM
- Nanalysis Announces Annual General Meeting • PR Newswire (Canada) • 06/15/2023 01:07:00 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM