Yahoo Finance Magnetic North Acquisition Corp. Announces Previcare in Receipt of Blanket Purchase Order for Up to $20.4 Million CAD of Compostable Medical Masks
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CALGARY, Alberta and TORONTO, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Magnetic North Acquisition Corp. (TSXV: MNC; MNC.PR.A) (“Magnetic North” or the “Company”) is pleased to announce that investee company, Previcare, Inc. (“Previcare”), and its partners have executed supply agreements and have received a blanket purchase order (the “Purchase Order”) for ASTM Level-3 compostable medical face masks. This Purchase Order is expected to generate approximately $20.4 million CAD of revenues for Previcare over the next 12 months.
The Purchase Order was received from a major US-based supplier of Personal Protective Equipment (“PPE”). The initial term of the Purchase Order is for twelve months and provides for monthly revenue to Previcare of approximately $1.7 million CAD. The Purchase Order includes the ability to increase monthly orders, subject to certain conditions. Previcare expects first shipments to commence before the end of the 2021 calendar year.
Andrew Osis, Co-CEO of Magnetic North stated, “Environmental, Social and Governance (“ESG”) performance is a top priority as Magnetic North continues to invest in technologies and innovations designed to improve performance and reduce negative impact on the environment. This Purchase Order is the first step of many we have been working on to facilitate the continuing development and value growth of Previcare. We are very pleased to work with the Previcare team to structure this deal and surface value for our shareholders.”
Kevin Spall, Co-CEO of Magnetic North stated, “As outstretched demand for PPE has increased, we continue to face challenges related to the Covid-19 pandemic. An overwhelming task is how to address the disposal of face masks in an environmentally responsible way. This Purchase Order provides a compostable medical face mask solution with what we believe to be equivalent or better performance and filtration utility to standard synthetic masks, to address this unmet market need.”
Recent reports estimate three million face masks each minute, or 129 billion (see link) face masks each month, are discarded or disposed of worldwide. With the vast majority of disposable face masks being made from plastic microfibers, scientists have warned that those masks can take up to 450 years to fully decompose (see link).
Spall added, “The Purchase Order is indicative of what we believe to be the significant demand from Previcare’s customers for environmentally responsible medical grade masks that can start to compost in less than 90 days.”
In order to meet the demand, Previcare and its partners plan to expand their current production capacity. Previcare advises it is targeting production and delivery capacity in excess of 100 million masks per month within the next twelve to 18 months.
As previously disclosed, Magnetic North owns a 32% equity stake in Previcare, a healthcare company focused on assisting its customers to protect themselves during and beyond the COVID-19 pandemic.
About Magnetic North Acquisition Corp.
Magnetic North invests and manages businesses on behalf of its shareholders and believes that capital alone does not always lead to success. With offices in Calgary and Toronto, our experienced management team applies its considerable management, operations and capital markets expertise to ensure its investee companies are as successful as possible for shareholders. Magnetic North common shares and preferred shares trade on the TSX Venture Exchange under the stock symbol MNC and MNC.PR.A, respectively. The TSX Venture announced that Magnetic North is a “2021 TSX Venture 50” recipient. For more information about Magnetic North, visit its website at www.magneticnac.com. Magnetic North’s securities filings can also be accessed at www.sedar.com.
For Further Information, Please Contact:
Graeme Dick | Stephen McCormick |
Investor Relations | VP, Capital Markets |
403-451-0939 | 403-451-0939 |
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
This news release contains “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer’s business, capital, or operations that is prospective in nature, and includes future-oriented information about the fulfilment of the Purchase Order, demand from Previcare’s existing and future customers and Previcare’s production expansion plans, each of which is based on a number of assumptions and subject to various risks.
The Company has made certain material assumptions, including but not limited to: the counterparty to the Purchase Order fulfilling its commitments in accordance with the terms of the Purchase Order; a continuing lack of a superior or competing technology to the ASTM Level-3 compostable medical face mask product; continuation of prevailing market conditions; lack of significant negative impacts from general business, economic, competitive, political and social uncertainties; and the ability of each of the Company and Previcare to execute and achieve its respective business objectives to develop the forward-looking information in this news release. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include but are not limited to: those implied by the assumptions discussed above; adverse market conditions; reliance on key and qualified personnel; and regulatory and other risks associated with the industries in which the Company's portfolio companies (including Previcare) operate, in general. The Company cautions that the foregoing list of material risk factors and assumptions is not exhaustive.
The Company assumes no obligation to update or revise the forward-looking information in this news release unless it is required to do so under Canadian securities legislation.
