December 28, 2022
New Contract Bolsters the US Supply Chain for Pandemic Response
Jessup, MD (December 28, 2022) - The Defense Logistics Agency has awarded an Indefinite Delivery/Indefinite Quantity (IDIQ) contract valued at up $410M to Access Bio, an industry leader in medical testing and diagnostics, supported by a US coalition including AirBoss Defense Group (“ADG”), Maddox Defense, and a network of US test kit component suppliers. This competitively awarded contract for the delivery of Made in America COVID test kits supports the US Government's on-going response to the COVID pandemic. The award demonstrates the US Government's strategic shift toward an American-made and sourced policy that is intended to ensure domestic industrial base capability and capacity in areas critical to the US response to any national emergency. Access Bio has already received and commenced deliveries under the first order of approximately one half of this IDIQ contract, valued at US$205M. ADG expects to generate US$19M in revenue during the next six months as this order is completed, and up to an aggregate of US$38M over the lifetime of the contract.
Regarding this award, Patrick Callahan, CEO of ADG, said “ADG has been focused on finding best-in-class partners and capabilities to further its leadership in the survivability and healthcare product sectors. Diagnostics and testing supplies have been an essential part of the US Government’s COVID pandemic response, and this award helps support the domestic industrial base that has emerged to address the enduring need for pandemic readiness. ADG is very proud to continue its support of US government preparedness efforts and is committed to being a key partner in further developing US-made and sourced manufacturing capabilities.”
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Certain statements contained or incorporated by reference herein, including those that express management’s expectations or estimates of future developments or ADG’s future performance, constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws, and can generally be identified by words such as “will”, “may”, “could” “is expected to”, “believes”, “anticipates”, “forecasts”, “plans”, “intends” or similar expressions. These statements are not historical facts but instead represent management’s expectations, estimates and projections regarding future events and performance.
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. ADG cautions that such forward-looking information involves known and unknown contingencies, uncertainties and other risks that may cause ADG’s 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; dependence on key customers; global defense budgets, notably in ADG’s target markets, and success of ADG in obtaining new or extended defense contracts; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; ADG’s ability to maintain existing customers or develop new customers in light of increased competition; ADG’s 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 ADG’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 ADG’s financial position or results of operations in future periods. While the direct impacts of COVID-19 are not determinable at this time, AirBoss of America Corp., the parent company of ADG, 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 ADG’s 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. All subsequent written and oral forward-looking information attributable to ADG or persons acting on its behalf are expressly qualified in their entirety by this notice. Forward-looking information contained herein is made as of the date of this press release and, whether as a result of new information, future events or otherwise, ADG disclaims any intent or obligation to update publicly this forward-looking information except as required by applicable laws. Risks and uncertainties about ADG’ business are more fully discussed under the heading “Risk Factors” in AirBoss of America Corp.’s (“AirBoss”) recent Annual Information Form and are otherwise disclosed in AirBoss’ filings with securities regulatory authorities which are available on SEDAR at www.sedar.com.