Benzinga | Jan 26, 2022 02:47PM EST

LiqTech Inks 3-Year OEM Membrane Sales Supply Agreement

* LiqTech International Inc (NASDAQ:LIQT) signed a 3-year OEM membrane supply agreement with a large European customer for drinking water treatment.

* The company expects total revenues under the initial term of the contract to exceed $23 million.

* LiqTech anticipates recognizing ~$3.5 million revenue in 2022, with first revenues commencing in the 3Q22 and the remaining $20 million to be realized in 2023 and 2024.

* First deliveries under the agreement are expected to occur during the third quarter of 2022, with regularly scheduled deliveries over the 36 months of the contract.

* The arrangement also includes a mutual renewal option after the original agreement.

* Price Action: LIQT shares are trading higher by 6.74% at $5.86 on the last check Wednesday.