Dear Fellow Shareholders,
As we reflect on the progress since our December update, I am
excited to share the latest developments that will shape our
Company’s trajectory in 2025 and beyond. With the successful
closing of a $20 million financing in January, we strengthened our
balance sheet by securing working capital for operating and capital
expenditures and paid down our debt to zero. We believe that we are
now well-positioned to advance our operations in Hungary through
the previously announced SoloGard and SecureGard agreements,
alongside ongoing business development initiatives in the U.S. We
remain fully committed to driving revenue from these agreements and
continue to focus on strategic growth, operational efficiency, and
value creation. This update offers a detailed overview of how we
are utilizing the proceeds from the financing and outlines the
Company’s strategic direction moving forward.
Advancing the Five-Year Agreement with Strategic U.S.
Medical Products Company for SoloGard
In July 2024, we announced an agreement with a prominent
U.S.-based supplier of medical saline and water products to supply
customized 10mL SoloGard syringes manufactured at Sharps’ facility
in Hungary. This collaboration establishes a five-year sales
agreement for at least 500 million syringes, with the potential to
generate approximately $50 million over the life of the agreement.
We are on track to begin generating revenue in the second half of
2025. To date, we have been utilizing pilot tooling for initial
material qualifications and concept product approvals. We have also
placed orders for advanced production technology for SoloGard and
will soon begin installation and operational qualification for the
next phase of the project. We remain aligned with the customer and
continue to work closely with them to qualify the parts and Sharps’
production process.
Driving Business Development Activities with European
Distributor to Support Major Healthcare Networks
In December 2024, we began deliveries for the qualification
purposes of Sharps’ SecureGard safety syringes, manufactured at our
Hungary facility, under the previously announced sales agreement
with a prominent European medical supply company serving Poland,
Slovakia, and the Czech Republic. Early qualification processes are
underway with healthcare groups, most notably Penta Hospitals
International ("Penta"). Penta is the largest international chain
of hospitals and outpatient clinics in Central and Eastern Europe,
comprising 34 hospitals, 31 outpatient clinics, and 26 facilities
for long-term care patients. We are currently shipping SecureGard
to healthcare groups across Europe for qualification approval, and
our team is working closely with them to secure orders. We remain
committed to fulfilling shipments in the coming months.
Continued Demand for Sharps’ Products and Manufacturing
Expansion in Hungary
Our recent financing positions Sharps with working capital to
expand operations in Europe by adding advanced machinery, expanding
our workforce, and enhancing production capabilities. We continue
to collaborate with both government and private investment sources
in Hungary to increase our manufacturing footprint and meet the
escalating demand for Sharps’ SecureGard and SoloGard syringes. We
believe that Sharps is well-positioned to capitalize on challenges
facing customers who are dealing with industry headwinds such as
tariffs, recalls, and quality issues with Chinese-made
products.
The demand for our innovative injection solutions is growing
rapidly, with injectables continuing to be the preferred delivery
method for therapies in areas like vaccines, biologics, weight
loss, ophthalmic and cosmetic applications, gene therapies, and
diabetes and inflammatory disease management. Sharps is committed
to advancing innovation in the syringe space and will keep you
updated as our expansion efforts in Hungary progress.
Strategic Partnership for Manufacturing in South
Carolina Remains in Progress
Our leadership team continues to negotiate with the selling
partner on the previously announced project for manufacturing in
South Carolina. Sharps is actively pursuing potential partners to
expand U.S. capacity, and as these discussions progress, we will
keep you updated on the status of confirmed negotiations.
2025 Growth Opportunities for SecureGard and SoloGard
and Closing
In closing, we are fully committed to driving significant
revenue from both the SecureGard and SoloGard projects. With the
Company’s recent financing, we believe that we are well-positioned
to execute our growth strategy by utilizing new working capital for
essential operating and capital expenses. With early production on
track for the second half of 2025 and SecureGard shipments expected
in the second quarter, we are confident in our revenue transition
this year. We deeply appreciate the patience and support of our
shareholders as these initiatives progress, and we will continue to
provide updates as developments unfold.
Thank you for your continuing support and confidence in our
Company. For more information, please
visit www.sharpstechnology.com
Sincerely,
Robert Hayes, CEO Sharps Technology, Inc.
About Sharps Technology:Sharps Technology is an
innovative medical device and pharmaceutical packaging company
offering patented, best-in-class smart-safety syringe products to
the healthcare industry. The Company’s product lines focus on
providing ultra-low waste capabilities, that incorporate syringe
technologies that use both passive and active safety features.
Sharps also offers products that are designed with specialized
copolymer technology to support the prefillable syringe market
segment. The Company has a manufacturing facility in Hungary.
For additional information, please
visit www.sharpstechnology.com and these recent news
stories: SecureGard sales agreement, SoloGard sales
agreement.
FORWARD-LOOKING STATEMENTS:This press release
contains “forward-looking statements”. Forward-looking statements
reflect our current view about future events. When used in this
press release, the words “anticipate,” “believe,” “estimate,”
“expect,” “future,” “intend,” “plan,” “poised” or the negative of
these terms and similar expressions, as they relate to us or our
management, identify forward-looking statements. Such statements,
include, but are not limited to, statements contained in this press
release relating to our business strategy, our future operating
results and liquidity, and capital resources outlook.
Forward-looking statements are based on our current expectations
and assumptions regarding our business, the economy, and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks, and
changes in circumstances that are difficult to predict. Our actual
results may differ materially from those contemplated by the
forward-looking statements. They are neither statements of
historical fact nor guarantees of assurance of future performance.
We caution you therefore against relying on any of these
forward-looking statements. Important factors that could cause
actual results to differ materially from those in the
forward-looking statements include, without limitation, our ability
to raise capital to fund continuing operations; our ability to
protect our intellectual property rights; the impact of any
infringement actions or other litigation brought against us;
competition from other providers and products; our ability to
develop and commercialize products and services; changes in
government regulation; our ability to complete capital raising
transactions; and other factors relating to our industry, our
operations and results of operations. Actual results may differ
significantly from those anticipated, believed, estimated,
expected, intended, or planned. Factors or events that could cause
our actual results to differ may emerge from time to time, and it
is not possible for us to predict all of them. We cannot guarantee
future results, levels of activity, performance, or achievements.
The Company assumes no obligation to update any forward-looking
statements in order to reflect any event or circumstance that may
arise after the date of this release.
Investor Contact:
Holdsworth Partners Adam HoldsworthPhone:
917-497-9287Email: info@sharpstechnology.com
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