Feb. 21, 2008
FSI Announces $1 Million, Zero Interest Financing
VICTORIA, BRITISH COLUMBIA, Feb. 21, 2008 – FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (AMEX: FSI, FRANKFURT: FXT), is the developer and manufacturer of biodegradable and environmentally safe water and energy conservation technologies, as well as anti-scalant technology. Today the Company announces a no-interest financing to cover up to $1 million of the cost of the aspartic acid facility in Taber, Alberta.
In order to prevent dilution to FSI shareholders, management has obtained a loan for $1million Canadian at 0% interest from the Agri-Opportunities Program, a fund set-up by Agriculture and Agri-Food Canada to encourage the development and enhancement of agri-business in Canada. The repayment term of the loan is 5 years beginning in 2012. US$3 million in equity financing along with a Cdn$2 million, 5% loan has already been obtained to fully finance conversion of the facility.
Flexible Solutions wishes to express its thanks to the Government of Canada, through the Agri-Opportunities fund, for its support of this project to increase industrial utilization of agricultural outputs and diversify farm sales.
With regard to the expansion of manufacturing into aspartic acid, FSI has begun refitting the newly purchased building and equipment has been ordered (see previous news releases). CEO Dan O’Brien states, “We expect pilot production from this facility to begin in Third Quarter, 2008 with full production in Fourth Quarter, 2008.” Mr. O’Brien continues, “It is anticipated that the new facility will reduce the NanoChem Division’s input costs for aspartic acid, resulting in regaining profit margins from Thermal Poly-aspartate (TPA) that were experienced a number of years ago, when the price of crude oil was much lower. The continued rise in cost of competing oil derived, non-biodegradable products, along with government legislation that curbs their use will allow Flexible Solutions easier access to the large main stream detergent and water treatment industries. Furthermore, the current high prices of agricultural products result in such large return on investment for farmers who use FSI’s TPA derived fertilizer enhancement product that sales are expected to increase significantly.”
“Polyaspartic acid has been shown to dramatically increase yield per acre of 50 different crops” says CEO O’Brien, “It is marketed under the tradenames, X10D, Amisorb and First Choice T-PA* and results in added yield per acre of 13 bushels of wheat, 15 bushels of corn, 39 hundred pounds of potatoes and 211 pounds of cotton lint. The product costs only $14 per acre to use and pays for itself easily when wheat sells for $10/bushel and more. FSI owns patent protection on the use of polyaspartic acid for crop extension in North America and intends to market this product extensively to the more than 150 million acres of land under cultivation. Crops intended for conversion into biodiesel and ethanol are special targets.”
Flexible Solutions will use sustainable input (sugar) to not only build TPA for oil, detergent and water treatment industries but, will also manufacture fertilizer enhancement products from agricultural output. Third party government and private testing on numerous crops resulted in a 6 to 30% increase in production of agricultural land at a very low cost. All of these products are biodegradable, environmentally safe, government and university tested and government approved.
* First Choice T-PA is a trademark of Western Farm Services