2014-02-25 15:04:12 -
Victoria, British Columbia CANADA, February 25, 2014 /FSC/ - Flexible Solutions International Inc. (FSI - NYSE AMEX, FXT - FWB),is the developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients and water treatment as well as crop nutrient availability chemistry. Flexible Solutions also manufactures biodegradable and environmentally safe water and energy conservation technologies. Today, FSI announces a change of status at Taber AB plant.
Mr. Daniel O'Brien, CEO, reports, "For six years we have researched and developed production of L-aspartic acid from sugar, a sustainable raw material. The plant began volume production in November 2011 and has been refining quality and increasing quantity since that date. The original goal was to produce sustainable L-aspartic acid for conversion to
sustainable polyaspartates at our Illinois plant and for sale to other L-aspartic acid customers."
"Since we began this project, however, the economic conditions in Alberta and worldwide have changed significantly. Costs have risen and the price of oil and the price of aspartic acid derived from oil are less than forecast at the project's inception. As a result, the technical goals of the project have shifted."
"We continue to believe in the technical and economic viability of the sugar to L-aspartic acid process that we have pioneered. However, we are unable to fund the equipment and personnel increases needed to reach break-even levels on our own. A partner is required to build on the technical successes achieved to date and reach profitable production levels."
"While the Company is actively seeking partners to complete process development, staffing at the Taber plant will be reduced to levels needed to maintain the intellectual property and the process equipment we have developed. The financial effect will be stronger operating cash flow for the Company as a whole. The effect on earnings per share will not be apparent, however, until the accumulated losses at Taber have been applied against profits."
Mr. O'Brien continues, "The changes do not affect the underlying profitability of our NanoChem Solutions division. While its implementation will be delayed until a suitable partner is found, the corporate goal continues to be achieving production of polyaspartate from sustainable sources of raw material."
About Flexible Solutions International
Flexible Solutions International, Inc. (www.flexiblesolutions.com), based in Victoria, British Columbia, is an environmental technology company. The Company's NanoChem Solutions Inc. subsidiary specializes in biodegradable, water-soluble products utilizing thermal polyaspartate (TPA) biopolymers. TPA beta-proteins are manufactured from the common biological amino acid, L-aspartic and have wide usage including scale inhibitors, detergent ingredients, water treatment and crop enhancement. The other divisions manufacture energy and water conservation products for drinking water, agriculture, industrial markets and swimming pools throughout the world. FSI is the developer and manufacturer of WaterSavr, the world's first commercially viable water evaporation retardant. WaterSavr reduces evaporation by up to 30% on reservoirs, lakes, aqueducts, irrigation canals, ponds and slow moving rivers. Heatsavr, a "liquid blanket" evaporation retardant for the commercial swimming pool and spa markets, reduces energy costs by 15% to 40% and can result in reduced indoor pool humidity. The Company's Ecosavr product targets the residential swimming pool market providing the same savings as Heatsavr.
Safe Harbor Provision
The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward looking statement with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.
Flexible Solutions International
206 - 920 Hillside Ave,
Victoria, BC V8T 1Z8 CANADA
Toll Free: 800.661.3560
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Source: Flexible Solutions International Inc. (NYSE Amex: FSI) (FWB: FXT) www.flexiblesolutions.com
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