Kelso Technologies Inc.: KXI Suspension Development Project
January 28 2021 - 9:00AM
Kelso Technologies Inc. (“Kelso” or the “Company”), (TSX: KLS),
(NYSE American: KIQ) wishes to provide a progress report on the KXI
Suspension Development Project (the “KXI project”) given the
negative effects of the COVID-19 pandemic on general business
development ambitions and resources.
Kelso operates the KXI project through the
Company’s wholly owned subsidiary KIQ X Industries (“KIQ”). As part
of a scheduled management succession plan in 2021 the Company has
appointed Mr. Chris Stewart to act as the President of KIQ. As part
of an orderly transition, Mr. Stewart replaces James R. Bond, who
will remain as Chief Executive Officer of KIQ. Mr. Stewart will
assume executive authority and responsibility for all aspects of
the KXI project. Mr. Stewart has served as the General Manager of
KIQ for several years and has been a key developer of the strategic
business model for the KXI project.
The focus of KIQ is to develop advanced
transportation technologies that provide for safer, more efficient
and environmentally responsible wilderness operations. KXI is a new
pioneer brand (WILDERTEC™) initiated by Kelso to service the niche
industry of wilderness transportation technologies. The Company’s
goal is to utilize well established automotive engineering
practices to solve the challenges of extreme wilderness terrain
travel and create opportunities and efficiencies for both industry
and public service customers.
The Company’s Phase-One “proof-of-concept” KXI
(prototype) included inventor’s innovations, engineered production
component parts, their fabrication tooling and installation of the
mechanical KXI components on a light duty “host” vehicle. The
prototype has been mostly completed, tested and performance
requirements determined with design specifications still to be
dimensioned in the areas of user interface and automation
functions. Once completed these design advancements should ensure
that KXI attains complete compliance with the Canadian Motor
Vehicle Safety Standards and the Federal Motor Vehicle Safety
Standards in the United States enabling initial commercial fleet
sales viability.
Third party wilderness experts have confirmed
that the Company’s “proof-of-concept” KXI is unique with a good
market potential. They confirm that a new non-serviced market
exists and is worth pursuing. KXI performs well off road and should
allow users to get to wilderness terrain safely with less human
fatigue. It demonstrates better wilderness performance than any
other known vehicle and has low environmental impact on the
ground.
KIQ can now begin to scale KXI to a heavy duty
host vehicle which represents a larger more accessible commercial
market opportunity. This strategic direction is expected to have
lower R&D costs because of better transmissions, diesel
options, better payload and tougher durability. The Company’s KXI
engineering group includes professional automotive engineers,
software and regulatory experts who will push toward final design
specifications. The Company’s goal is to ensure the KXI vehicle
provides complete compliance to all federal standards and regional
regulations including warranty support from KIQ and host vehicle
OEMs. The Companys experts confirm that there are regulatory
advantages to pursue the development of a heavy duty vehicle and
that development is underway.
James R. Bond, CEO of the Company states that;
“The Company’s original plans in 2020, before the negative impacts
of the COVID-19 pandemic became reality, were to take KXI to the
final commercial design specifications, regulatory approvals and
revenue generation. Due to many challenging variables and R&D
discoveries the Company was unable to complete the regulatory
approved commercial “blueprint” for the first product offerings as
originally scheduled. Given that current COVID-19 uncertainties
continue to be problematic and unpredictable, the Company is
carefully revising its R&D objectives and schedules. The
Company remains optimistic about the long term prospects for KXI
but the Company has had to delay “pilot” production operations and
marketing initiatives for the time being.”
About Kelso Technologies
Kelso is a diverse product development company
that specializes in the design, production and distribution of
proprietary service equipment used in transportation applications.
Our reputation has been earned as a designer and reliable supplier
of unique high-quality rail tank car valve equipment that provides
for the safe handling and containment of hazardous and
non-hazardous commodities during transport. All Kelso products are
specifically designed to provide economic and operational
advantages to customers while reducing the potential effects of
human error and environmental harm.
For a more complete business and financial
profile of the Company, please view the Company's website at
www.kelsotech.com and public documents posted under the Company’s
profile on www.sedar.com in Canada and on EDGAR at www.sec.gov in
the United States.
On behalf of the Board of
Directors,
James R. Bond, CEO and President
Legal Notice Regarding Forward-Looking
Statements: This news release contains “forward-looking
statements” within the meaning of applicable securities
legislation. Forward-looking statements are indicated expectations
or intentions. Forward-looking statements in this news release
include that the further advancement of user interface and
automation functions should ensure that KXI attains complete
compliance with the Canadian Motor Vehicle Safety Standards as well
as the Federal Motor Vehicle Safety Standards in the United States
enabling immediate commercial fleet sales viability; that our
“proof-of-concept” KXI is unique with good market potential; that
KIQ can now begin to scale KXI to a Heavy Duty host vehicle as this
represents a larger more accessible commercial target market
opportunity; that our strategic direction is expected to lower
R&D costs because of better vehicle transmissions, diesel
options, better payload and tougher durability; and that we remain
optimistic about the longer term prospects for KXI but we have had
to delay “pilot” production operations and marketing initiatives
until a later date. Although Kelso believes its anticipated future
results, performance or achievements expressed or implied by the
forward-looking statements and information are based upon
reasonable assumptions and expectations, they can give no assurance
that such expectations will prove to be correct. The reader should
not place undue reliance on forward-looking statements and
information as such statements and information involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Kelso to differ
materially from anticipated future results, performance or
achievement expressed or implied by such forward-looking statements
and information, including without limitation that we may be unable
to successfully complete the requirements of the Canadian Motor
Vehicle Safety Standards and the Federal Motor Vehicle Safety
Standards in the United States to gain full approval for our KXI
products; that the risk that testing for the safety regulations for
Canadian Motor Vehicle Safety Standards and the Federal Motor
Vehicle Safety Standards in the United States may be delayed or
cancelled; that the Company’s KXI may not provide the intended
economic or operational advantages to customers; that we may be
unable to grow and sustain anticipated revenue streams because of
competition or limited interest in our products; orders may be
cancelled and competitors may enter the market with new product
offerings which could capture some of our market share; costs of
production may increase affecting our profitability and the
economic viability of KXI; we may have to incur debt to keep up
with costs and/or technological or product development expenses;
our intellectual properties in KXI may be challenged and our KXI
may not capture market share as well as expected. Except as
required by law, the Company does not intend to update the
forward-looking information and forward-looking statements
contained in this news release.
For further information, please
contact:
James R. Bond, CEO and President |
Richard Lee, Chief Financial Officer |
Corporate Address: |
Email: bond@kelsotech.com |
Email: lee@kelsotech.com |
13966 -
18B Avenue South Surrey, BC V4A 8J1 www.kelsotech.com |
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