Phase-In of Canada-Wide Coverage at All 89
Designated Airports Completed on January
11, 2024
CALGARY,
AB, Jan. 30, 2024 /CNW/ - Nanalysis
Scientific Corp. ("the Company" or "Nanalysis", TSXV: NSCI,
OTCQX: NSCIF, FRA: 1N1), a leader in portable NMR machines, MRI
technology for industrial and research applications, and detection
equipment services, gives an update on its subsidiary
K'(Prime) Technologies ("KPrime") security services business
and the five-year $160 million contract with Canadian Air
Transport Security Authority ("CATSA").
Completion of the CATSA Project
Rollout
Sean Krakiwsky, Founder and
CEO of Nanalysis, states: "With the announcement of the
award of the CATSA contract back in May of 2022 to the Company's
subsidiary KPrime, we significantly expanded our Security Services
business, which, over time, will increase our capability to support
our proprietary products in NMR and MRI technology. At the time of
the award, we announced that there was an initial phase-in period
for the project. This period involved our team hiring and training
over 100 technicians and taking over all preventative and
corrective maintenance services for passenger screening equipment
at 89 airports in Canada from the
incumbent service provider. We are happy to report we are through
that phase-in period and are now in control of the basic service
and maintenance of all 89 airports in Canada. The focus now is to start working on
the backlog of additional projects and requirements that CATSA
has for us. We will do this with the same workforce, and therefore,
we are in a phase of the contract whereby the costs level off and
revenue is expected to increase substantially."
"Having now taken over all preventative and corrective
maintenance services for CATSA, we expect the project to begin
generating positive EBITDA in Q1 2024*. As fixed costs have
flattened while revenues are ramping up, I expect to maximize
EBITDA throughout 2024 and for years to come."
Denis Perron, Senior Director,
Screening Technology at CATSA, states: "We have been very
pleased with KPrime's progress and congratulate them on achieving
this important milestone through their ongoing commitment to
building a very capable service team across Canada."
Sime Buric, President of
KPrime, a subsidiary of Nanalysis, states: "I am very
proud of everyone within the organization that worked tirelessly on
this project. The team has been hard at work, in collaboration with
CATSA, CATSA's equipment manufacturers, and the exiting incumbent
service provider, to reach this major milestone. The team is
adaptive and continuously looks for improvements. This approach
will position us to expand the capabilities and opportunities for
our Security Services business with other customers and
partners."
Project Highlights:
- *Project EBITDA: As of January
2024, with the phase-in period's completion, the project is
expected to generate positive EBITDA in Q1 2024, excluding final
one-time training costs which will end March
31, 2024. EBITDA is expected to grow through 2024 and
provide a stepped-up EBITDA contribution for the rest of the
contract. Please see the note below regarding one-time and ongoing
training obligations.
- Fully Executed Cutover Plan as of January 11, 2024: As a result of the
hard and relentless work of the KPrime leadership team and local
technicians, and with the support of CATSA's equipment
manufacturers and the incumbent service provider, KPrime has now
assumed all maintenance responsibilities for CATSA's fleet of
imaging and detection equipment across all of Canada.
- Canada-Wide Coverage: KPrime now performs
maintenance of CATSA imaging and detection equipment at all 89
designated airports and is now also providing additional authorized
work support to CATSA.
- Training costs: Initial training costs for staff
maintenance certifications were substantial in the phase-in period.
While the Company has taken over all 89 airports, it is still
expecting some initial training to occur in the first quarter of
2024 for its most recently hired team members. After completion of
initial training, the Company expects lower ongoing training costs
commensurate with ordinary staff turnover and ongoing certification
maintenance.
About Nanalysis Scientific Corp.
(TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1)
Nanalysis Scientific Corp. operates two primary businesses:
Scientific Equipment and Security Services. Within its Scientific
Equipment business is what the Company terms "MRI and NMR for
industry". The Company develops and manufactures portable Nuclear
Magnetic Resonance (NMR) spectrometers or analyzers for laboratory
and industrial markets. The NMReady-60™ was the first full-feature
portable NMR spectrometer in a single compact enclosure requiring
no liquid helium or any other cryogens. The Company has followed-up
that initial offering with new products and continues to have a
strong innovation pipeline. In 2020, the Company announced the
launch of its 100MHz device, the most powerful and most advanced
compact NMR device ever brought to market.
The Company's devices are used in many industries (oil and gas,
chemical, mining, pharma, biotech, flavor and fragrances,
agrochemicals, law enforcement, and more) as well as numerous
government and university research labs around the world. The
Company continues to exploit new global market opportunities
independently and with partners. With its partners, the Company
provides scientific equipment sales and maintenance services
globally.
In 2022, through its subsidiary KPrime, the Company was awarded
a five-year, $160 million contract
with CATSA to provide maintenance services for passenger screening
equipment in Canadian airports. This has resulted in the expansion
of the Company's Security Services business. The Company is
providing airport security equipment maintenance services
for CATSA in each province and territory of Canada. In addition, the Company provides
commercial security equipment installation and maintenance services
to a variety of customers in North
America.
Notice regarding Forward Looking
Statements and Legal Disclaimer
This news release contains certain "forward-looking statements"
within the meaning of such statements under applicable securities
law. Forward-looking statements are frequently characterized by
words such as "anticipates", "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed", "positioned" and other similar
words, or statements that certain events or conditions "may" or
"will" occur. These statements are only predictions. Various
assumptions were used in drawing the conclusions or making the
projections contained in the forward-looking statements throughout
this news release. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
The Company is under no obligation, and expressly disclaims any
intention or obligation, to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
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SOURCE Nanalysis Scientific Corp.