Tornado Global Hydrovacs signs Strategic Supply Agreement with Ditch Witch
05 July 2022 - 9:30PM
Tornado Global Hydrovacs Ltd.
(“
Tornado”, the “
Company”, “we”
or “us”)
(TSX-V: TGH ; OTCQX: TGHLF) is pleased to
announce that it has entered into a Product Supply and Development
Agreement for the co-development and supply of customized hydrovac
trucks (the “
Supply Contract”) with Ditch Witch, a
division of The Toro Company (NYSE: TTC) (the
“
Purchaser”or “
Ditch Witch”). The
Supply Contract contains a commitment for the delivery of a number
of innovative, proprietary hydrovac trucks to the Purchaser that
are estimated to generate minimum gross revenue for Tornado in the
amount of USD$43,850,000 during the four (4) year term.
“This strategic alliance brings together two
strong brands with a collective purpose to better serve customers,
and meet future demands including the outlook on infrastructure
spending and the effect this spending will have on hydrovac demand
globally,” stated Brett Newton, CEO of Tornado. “Tornado is
thrilled to have co-designed and started to supply an innovative
and proprietary hydrovac truck that will be distributed through the
Ditch Witch construction equipment network. Combined with our other
sales of hydrovac trucks, we expect this relationship to further
optimize the utilization of our manufacturing capacity much more
rapidly.”
The Supply Contract requires Tornado to
co-develop a customized exclusively Ditch Witch branded hydrovac
truck, (including the necessary intellectual property for the
design and operation of the hydrovac truck) and then supply the
customized hydrovac trucks to the Purchaser commencing in fiscal
year 2022 and ending in fiscal year 2025, subject to certain
customary commercial terms and conditions. The sale and delivery of
the first customized hydrovac truck to the Purchaser is expected to
be completed in Q3 2022.
About Tornado Global Hydrovacs
Ltd.Tornado is a pioneer and leader in the vacuum truck
industry and has been a choice of oilfield and utility
professionals with over 1,000 hydrovacs sold since 2005. The
Company designs and manufactures hydrovac trucks as well as
provides heavy duty truck maintenance operations in central
Alberta. It sells hydrovac trucks to excavation service providers
in the infrastructure and industrial construction and oil and gas
markets. Hydrovac trucks use high pressure water and vacuum to
safely penetrate and cut soil to expose critical infrastructure for
repair and installation without damage. Hydrovac excavation methods
are quickly becoming a standard in the North America to safely
excavate in urban areas and around critical infrastructure greatly
reducing infrastructure damage and related fatalities.
For more information about Tornado Global
Hydrovacs Ltd., visit www.tornadotrucks.com or contact:
Brett NewtonPresident & Chief
Executive OfficerPhone: (416) 522-6390Email: bnewton@tghl.ca |
|
Advisory
Certain statements contained in this news
release constitute forward-looking statements and future oriented
financial information. These statements relate to future events.
All statements other than statements of historical fact are
forward-looking statements or future oriented financial
information. The use of the words “anticipates”, “should”, ‘‘may”,
“expected”, “expects”, “believes” and other words of a similar
nature are intended to identify forward-looking statements or
future oriented financial information. These statements involve
known and unknown risks, uncertainties and other factors that may
cause actual results or events to differ materially from those
anticipated in such forward-looking statements or, as applicable,
such future oriented financial information. Although Tornado
believes these statements to be reasonable, no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this news release and the
future oriented financial information included in this news release
should not be unduly relied upon. Such statements include the
statement with respect to: (i) the Company’s estimate of aggregate
gross revenue in the amount of USD$43,850,000 from the Supply
Contract; (ii) the Company’s view regarding the outlook for
infrastructure spending and the effect this spending will have on
hydrovac demand globally; (iii) the expected utilization of our
manufacturing capacity as a result of the Supply Contract; (iv) the
anticipated co-development and supply of the customized exclusively
Ditch Witch branded hydrovac trucks to be delivered by the Company
over a four-year period commencing in fiscal year 2022 and ending
in fiscal year 2025; and (v) the expected first delivery of
customized trucks to the Purchaser in Q3 2022. The forward-looking
statements and future oriented financial information contained in
this news release represent Tornado’s expectations as of the date
hereof and are subject to change after such date. Tornado disclaims
any intention or obligation to update or revise any forward-looking
statements and future oriented financial information whether as a
result of new information, future events or otherwise, except as
may be required by applicable securities regulations.
The future oriented financial information
regarding the Company’s estimate of aggregate gross revenue in the
amount of USD$43,850,000 from the Supply Contract contained in this
news release was approved by management as of the date hereof and
is based on certain assumptions that management believes are
reasonable in the circumstances including (i) the demand for
hydrovac trucks, (ii) the ability of the Company to fulfil its
obligations under Supply Contract; and (iii) the anticipated
purchase price to be paid for hydrovac trucks. The purpose of the
future oriented financial information contained herein is to
disclose the anticipated economic value of the Supply Contract and
readers are cautioned that such information may not be appropriate
for other purposes.
Neither the Exchange nor its Regulation
Service Provider (as that term is defined in policies of the
Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
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