Announces Build-Up in Firm DND Contracts
July 17 2019 - 8:00AM
Unisync Corp. (TSX: "UNI") (“Unisync") is pleased
to announce that the Department of National Defense (“DND”) has
recently exercised $8.5 million in contract options bringing the
total firm orders under contract to $20.5 million at its
subsidiary, Peerless Garments LP (“Peerless”). The largest contract
option exercised involves the production of $6.1 million of
enhanced combat uniforms. There remains a further $13.2 million in
contract options still open for exercise which Peerless is working
closely with the DND on to better understand and plan for the
timing of future product requirements.
With this build-up in firm contracts, we are
expecting a significant improvement in financial performance from
our Peerless business unit during the latter half of Fiscal 2019
and in Fiscal 2020.
Unisync On The Move
Unisync is a broad-based vertically integrated
North American enterprise with exceptional capabilities in garment
design, domestic manufacturing, and off-shore outsourcing,
including state-of-the-art web based B2B ordering, distribution,
and program management systems. Unisync operates through two
business units: Unisync Group Limited (“UGL”) and Peerless.
UGL provides full-service, managed apparel
programs for major corporations and government-related entities
through operations across Canada and this year has expanded into
the US marketplace through the establishment of a 45,000 sq. ft.
distribution and service facility in Henderson, Nevada, and a sales
and service facility in Lakewood, New Jersey. The Nevada facility
is now staffed and starting to receive and kit new uniforms for the
launch of its first major US based airline account which is
scheduled to officially rollout its new designs in the first half
of Fiscal 2020. UGL’s customer base includes a broad list of North
American iconic brands as well as municipal and provincial agencies
across
Canada.
Winnipeg based Peerless specializes in the manufacturing and
distribution of highly technical protective garments, military
operational clothing, and accessories for a broad spectrum of
Federal, Provincial and Municipal government agencies in Canada. It
has been the leading prime contractor for the provision of
operational clothing and accessories to the DND for over 40
years.
The combination of the core competencies of UGL
in state-of-the-art web based B2B ordering, distribution, and
program management systems and the Peerless decades of experience
in providing DND operational clothing, positions Unisync as a major
contender for the recently announced operational clothing and
footwear contract (“OCFC2”) – a managed program estimated at $1
billion over the potential 20 year term of the contract. Public
Works and Government Services Canada has indicated they expect to
release the request for proposals on this project in the next two
to three months.
For more information on our capabilities,
products and services please visit the Unisync website at
www.unisyncgroup.com.
On Behalf of the Board of DirectorsDouglas F
Good, Executive Chairman
Investor relations
contact: Douglas F
Good
778-370-1725 or Email dgood@unisyncgroup.com
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