Mission Ready Solutions (TSXV: MRS) has finally provided an official update to the market related to the discovery that the company on Monday was awarded up to US$324.3 million in US government contracts. As it turns out, the company was awarded a total of seven, not six contracts as we previously reported. With the values of the contracting being at most C$435 million, Mission Ready has guided that it expects the contracts to have an actual value of approximately $127.9 million.
The difference in the maximum value, which is effectively a ceiling on the purchase order, and that of the estimated value is the fact that the contracts were written in a way to represent the maximum amount that can be ordered under the agreement. As a result, Mission Ready is confident that at minimum $127.9 million worth of product will be purchased under the contracts over the next twelve months.
The contracts awarded are part of the US governments COVID-19 pandemic response, with the products to be manufactured by Unifire, a wholly owned subsidiary of Mission Ready, being that of level 2 and level 3 isolation gowns. The company was awarded the contracts though the United States Defense Logistics Agency Troop Support Clothing and Textiles. Products will be manufactured through Unifire’s established network and then shipped directly to the Department of Health and Human Services.
With an estimated value of $127,878,307, the company expects margins under the contracts awarded to be in line with historical margins produced by the company. The ceiling value of the contracts has been pegged at $435,723,020.
Mission Ready Solutions remains halted on the TSX Venture as of the time of writing.
Information for this briefing was found via Sedar and Mission Ready Solutions Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
