Worksport Ltd. (Nasdaq: WKSP) (the "Company" or "Worksport"), through its wholly owned subsidiary, Worksport New York Operations Corporation ("WKSP NY"), seeking to capitalize on the growing shift of consumer mindsets towards clean energy with its proprietary solar and green hydrogen-based technologies, has completed the purchase of a manufacturing facility in upstate New York. The Company plans to manufacture its line-ups of advanced products in this new facility, including its brand-new solar cover, SOLIS, which utilizes the Company's TC3 truck bed cover as its base and is primarily constructed of aluminum components.
Located in West Seneca, a suburb of Buffalo, New York, the facility was purchased for $8.125M USD. The acquisition was completed with a purchase and sale agreement between the Company and J&M Distributing on May 6th, 2022, transacted with cash and a favorable loan agreement between WKSP NY and Northeast Bank for $5.3M USD of the purchase price. The facility is 152,847 square feet and features a 17,229-square foot Automated Storage & Retrieval System, or AS/RS, that stands 90 feet tall. This advanced system will allow Worksport to store parts and products vertically, utilizing cubic area of available space, streamlining component and product retrieval during production and order fulfilment, respectively.
This facility investment is a culmination of two years' worth of planning and Company management believes it will afford the business to take complete control of its production pipelines for all its current and future products.
Mr. Steven Rossi, Worksport Chief Executive Officer states, "With all the manufacturing issues plaguing multiple industries today, from supply chain issues to the risk of IP being compromised, on-shoring production to a facility we own is the next logical step in Worksport's growth strategy. Establishing a solid foundation in this particular phase of the business is invaluable and very exciting for the Company." Worksport will begin setting up machines that have been purchased over the last several months, including an Emmegi milling line, fabric cutter from Gerber Technology, and a fully automated bending machine from Prima Power. The Company is paving a new path where it will be able to compete at the highest level for the first time in the Company's history. It plans to be operational within three months and is aiming to be running at full capacity by the end of 2022. In the interim, 30,000 square feet of the building is leased to Sonwil Distribution until December 31, 2022, reducing some expenses while the Company completes setup for full-scale production.
The Governor's Office of New York had the following to say about this acquisition:
"Governor Hochul's dedication to attracting small businesses, by supporting forward-thinking companies like Worksport Ltd., will continue to strengthen the economy and create high-quality jobs in Erie County and across the state," said Empire State Development Acting Commissioner and President & CEO-designate Hope Knight. "As Worksport's first U.S. production facility, this project will solidify the company's investment within New York State, help foster innovation and green technology, and provide the potential for even more jobs in the future."
Company CEO Steven Rossi adds, "We are ecstatic to be bringing the Company's manufacturing to North America, and especially in New York, where our first 'Made in USA' SOLIS solar cover and Terravis Energy grid-connected fast chargers will roll off our production lines in short order. We intend to continue investing in the facility to ensure success for Worksport while striving to become a valued member of the community. We are on a new, exciting path and are grateful to New York. The New York Community has been great and pivotal in the closing of this monumental purchase for the Company. We are looking forward, with this facility, to do extremely exciting things."
RELATED ARTICLE : Worksport to Participate in the 2022 Virtual Growth Conference
