Flexible Solutions Secures Major US Food-Grade Manufacturing Deal, Stock Soars

Flexible Solutions International, Inc. (NYSE:FSI) shares surged on Thursday after the company entered into a new partnership with a U.S.-based company to manufacture food-grade products under a non-exclusive agreement.

The agreement, which started on Jan. 7, is set for a five-year term, with the possibility of automatic renewals for up to 25 years unless either party gives written notice to cancel.

Based on FSI’s estimates, the contract could bring in annual revenue ranging from $15 million to $30 million or more.

FSI anticipates starting to generate revenue in about six months, following the expansion of its clean room facilities and the installation of the required manufacturing equipment to meet its client’s stringent quality standards.

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This agreement could play a key role as FSI aims to strengthen its presence in the growing food-grade industry.

The company sees this contract as a solid base for future opportunities in the sector and is actively pursuing new clients to expand its reach in this market.

“This is a very significant contract that could provide revenue for many years. It is confirmation that our decision to enter the food grade market was correct and it is a strong base to build on as we work to obtain more business selling food grade products to US customers,” said CEO Dan O’Brien.

The company develops and produces biodegradable polymers used in oil extraction, detergent components, water treatment, and crop nutrient chemistry.

Additionally, FSI is expanding its footprint in the food and nutrition supplement manufacturing sectors.

Price Action:

• FSI shares are trading higher by 53.39% at $5.66 at the last check Thursday.

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