Tornado Global Hydrovacs signs Strategic Supply Agreement with Ditch Witch
CALGARY, Alberta, July 05, 2022 (GLOBE NEWSWIRE) -- 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 Newton |
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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.
