AirBoss Receives Orders Valued at up to US$23 Million for Specialized Footwear Solutions
NEWMARKET, Ontario, March 31, 2021 (GLOBE NEWSWIRE) — AirBoss of America Corp. (TSX: BOS) (the “Company” or “AirBoss”) today announced that its wholly-owned subsidiary AirBoss Defense Group (“ADG”), the global leader in survivability for the assured mobility, healthcare and chemical, biological, radiological, nuclear, and explosive (“CBRNE”) communities, has been awarded an indefinite delivery/indefinite quantity (IDIQ) contract valued at up to US$15.1 million by the U.S. Department of Defense (“DOD”) for the manufacture and sale of up to 56,700 pairs of Extreme Cold Vapor Barrier Boots (“ECVBB”), commonly referred to as “bunny boots”. The Defense Logistics Agency (DLA) Troop Support will administer this three-year contact and deliveries are expected to begin immediately.
In addition to the ECVBB contract, AirBoss also announced that it has recently received a US$7.9M order from the DOD for its Molded AirBoss Lightweight Overboots (“MALOs”) as part of an IDIQ contract for MALOs previously announced in September 2019. This follow-on order reaches the maximum value of the original base contract for up to 600,000 pairs of MALO boots at an aggregate amount of US$26.7M.
“We’re extremely pleased to remain the trusted supplier of protective footwear for U.S. servicemembers around the world, a recognition of our longstanding capability to provide specialized survivability solutions that outperform in the most challenging environments,” said Chris Bitsakakis, President and COO of AirBoss. “For decades, the U.S. government has selected our solutions, from respiratory protection to protective wearables, to protect warfighters, frontline healthcare workers, first responders and security personnel.”
The new ECVBB contract and MALO purchase order are included in the Company’s outlook for 2021 and build upon ADG’s successful history of providing protective and survivability solutions to the U.S. federal government. AirBoss and its predecessor companies have been providing critical protection to soldiers since the second world war.
The ECVBB is a legacy boot used by the United States Armed Forces. These robust, waterproof rubber boots are rated to perform in the coldest of weather conditions (-20 to -65 degrees Fahrenheit), with a liner-free interior retaining warmth by layering up to one inch of wool and felt insulation between two vacuum-tight layers of rubber. The ECVBB was originally designed at the Navy Clothing and Textile Research Center in Natick, MA during the Korean War for military expeditions in extreme cold weather environments. The proven warmth and durability of the ADG ECVBB has made these boots the extreme cold weather footwear of choice for the DOD.
The MALO was originally designed and developed to provide superior physical properties and protection compared to CBRNE overboots then in service. It is made with an injection-molded specialty polymer, an easy to decontaminate material that offers superior protection against CBRNE threats, and integrates with currently fielded CBRNE Suits. The MALO has been broadly adopted worldwide and is used by more than 40 countries.
AirBoss of America is a leading and diversified developer, manufacturer and provider of innovative survivability solutions, advanced custom rubber compounds and finished rubber products that are designed to outperform in the most challenging environments. Founded in 1989, the company operates through three divisions. AirBoss Defense Group is a global leader in personal and respiratory protective equipment and technology for the defense, healthcare, medical and first responder communities. AirBoss Rubber Solutions is a top-tier North American custom rubber compounder with 500 million turn pounds of annual capacity. AirBoss Engineered Products is a supplier of innovative anti-vibration solutions to the North American automotive market and other sectors. The Company’s shares trade on the TSX under the symbol BOS. Visit www.airboss.com for more information.
Investor Contact: Chris Bitsakakis, President, Gren Schoch, Chairman and CEO at 905-751-1188
Media Contact: [email protected]
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Statements containing forward-looking information are necessarily based upon a number of opinions, estimates and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. AirBoss cautions that such forward-looking information involves known and unknown contingencies, uncertainties and other risks that may cause AirBoss’ actual financial results, performance or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by the forward-looking information. Numerous factors could cause actual results to differ materially from those in the forward-looking information, including without limitation: impact of general economic conditions notably including its impact on demand for rubber solutions and products; dependence on key customers; global defense budgets, notably in the Company’s target markets, and success of the Company in obtaining new or extended defense contracts; cyclical trends in the tire and automotive, construction, mining and retail industries; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; AirBoss’ ability to maintain existing customers or develop new customers in light of increased competition; AirBoss’ ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof; changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws and potential litigation; ability to obtain financing on acceptable terms; environmental damage and non-compliance with environmental laws and regulations; impact of global health situations; potential product liability and warranty claims and equipment malfunction. COVID-19 could also negatively impact the Company’s operations and financial results in future periods. There is increased uncertainty associated with future operating assumptions and expectations as compared to prior periods. As such, it is not possible to estimate the impacts COVID-19 will have on the Company’s financial position or results of operations in future periods. While the direct impacts of COVID-19 are not determinable at this time, the Company has a credit facility as at December 31, 2020 that can provide financing up to US$60,000,000. This list is not exhaustive of the factors that may affect any of AirBoss’ forward-looking information. All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Investors are cautioned not to put undue reliance on forward-looking information.
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