Benzinga | Jan 26, 2022 08:11AM EST

LiqTech Signs OEM Membrane Sales Supply Agreement; Total Revenues Under Contract To Exceed $23M

LiqTech International, Inc. (NASDAQ:LIQT) ("LiqTech"), a clean technology company that manufactures and markets highly specialized filtration technologies, today announced the signing of a 3-year, OEM membrane supply agreement with a large European customer for drinking water treatment. First deliveries under the agreement are expected to occur during the third quarter of 2022, with regularly scheduled deliveries over the duration of the 36 months of the agreement. Total revenues under the initial term of the contract expected to exceed $23 million. There is a mutual renewal option at the conclusion of the original agreement.

Utilizing LiqTech's unique, patented technology, the Company's ceramic membranes offer consistent and continuous removal of particles, oil droplets, emulsions, and suspended solids at high throughput rates regardless of the feed conditions. The Company's chemically inert, plug-and-play silicon carbide ceramic membranes are tough, chemically resistant, and durable ceramics with high flux (flow). Further, silicon carbide ceramic membranes are more robust, harder, longer-lasting, more temperature-resistant, and recover faster than conventional ceramic or polymeric membranes, contributing to increased membrane life and reduced downtime for cleaning the membranes when fouled.

"We are pleased to have signed this 3-year OEM contract for our proprietary silicon carbide membranes for use in OEM applications predominantly designed to treat drinking water," commented Sune Mathiesen, CEO of LiqTech. "Water scarcity is a critical problem facing humanity, and several places worldwide are experiencing water crises. Simultaneously, clean water demand continues to grow rapidly due to an increasing population and improving lifestyles. We believe LiqTech's unique technology is ideally suited in variety of OEM applications, such as drinking water treatment, and look forward to leveraging our capabilities for additional opportunities in the future."

Under terms of the agreement, the Company expects to recognize revenue under this agreement of approximately $3.5 million in 2022 with first revenues commencing in the third quarter of 2022. The remaining $20 million is expected to be realized in 2023 and 2024.