NEW AGREEMENT MEANS AN ESTIMATED $600,000 U.S. IN ANNUAL REVENUES; WILL POSITIVELY IMPACT Q4 2018
Toronto, Ontario, Canada, Oct. 30, 2018 (GLOBE NEWSWIRE) -- Stock Market News – Oct. 30th, 2018 — Worksport, the wholly owned subsidiary of Franchise Holdings International (OTCQB: FNHI), has been awarded an open-ended, long-term, manufacturing contract for Tri Fold soft covers by a leading U.S. truck accessory distributor and manufacturer. Early estimates indicate Tri Fold sales will generate in additional Worksport revenues at least $600,000 U.S. annually.
Revenue is expected to start in Q4 2018. FNHI and Worksport will update investors about relating stock market news and when the opening orders are received. The cover purchaser, a mid-market, rapidly growing U.S. company, is valued at over $200,000,000.
“Just like Worksport, this distributor and manufacturer has entered into in an evolutionary growth phase within its business,” said FNHI and Worksport CEO Steven Rossi. “Together, we expect a mutually beneficial relationship. This large manufacturing contract, for one of our best-selling tonneau covers, demonstrates that our private label sales success will be a major part of our future growth plans.” Before placing the order, the client became aware that Worksport is an innovative growth company that is independent from much larger market leaders, Rossi said. “Momentum is occurring rapidly across the continent now that we can legally operate under the Worksport name in the U.S,” Rossi added.
Under the agreement’s terms, Worksport will produce a fully patented, unique, and customized soft folding cover, created exclusively for this client. Production lots of 400-500 units, per order will be purchased. Weekly orders could be expected, as the program matures.
Rossi said that Worksport also opened discussions with the same U.S. truck accessory company to create a hard-folding model, within Worksport’s catalog of proprietary designs and patents. When finalized, this contract could generate an additional $1.2 million U.S. in annual revenues. “This is what we’ve been working so hard towards,” said Rossi. “It’s another great milestone in our company’s progress towards its mandate of a 9-figure valuation with annual revenues of at least $50 million dollars. Brick by brick, we’re building something special.”
FNHI’s Worksport is also in discussions with another U.S retailer. It would manufacture, stock, and distribute within the U.S. a second version of a custom soft folding tonneau cover. This client is estimated to be even larger than the U.S. customer, described above. It is expected to purchase annual volumes nearing 3,000 soft Tri Fold covers. When finalized, the relationship could mean additional $500,000 U.S. in revenues, or more, Rossi said.
“Our proprietary and patented tonneau covers are greatly in demand,” Rossi commented. “Their quality and innovative characteristics clearly are attracting highly demanding national U.S. distributors.” When finalized, the contract’s terms, along with any other important developments and FNHI stock market news, will be rapidly disclosed to FNHI shareholders and investors.
Forward-Looking Statements
This document may contain forward-looking statements, relating to Franchise Holdings International Inc. operations or to the environment in which it operates, which are based on Franchise Holdings International Inc. operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond Franchise Holdings Internationals Inc.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. Franchise Holdings International Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Worksport
Worksport is an innovative manufacturer of high quality, functional, and aggressively priced tonneau/truck bed covers for the light truck market.
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