Applied UV Inc (NASDAQ: AUVI), a pathogen elimination technology company, has signed a strategic manufacturing and related services agreement with Canon Virginia Inc (CVI), a wholly-owned subsidiary of Canon Inc‘s (NYSE: CAJ) Canon U.S.A, Inc.
The financial terms of the arrangement, which marks the first of a series of anticipated agreements, were not disclosed.
The agreement establishes CVI’s status as the primary manufacturer, assembler, and logistical authority for Applied UV’s suite of air purification solutions.
The manufacturing agreement will enable the company to leverage the resources of CVI’s two million-square-foot state-of-the-art engineering, manufacturing and distribution facility.
“Over the past three years, supply chain and logistics disruptions have impacted operations for companies globally, so consolidating and bringing our manufacturing processes on shore with one company was a top priority,” said Max Munn, President & Director of Applied UV.
“By reducing manufacturing execution risk, we will be able to focus solely on sales and marketing,” Munn added.
Applied UV also plans to collaborate with Canon Financial Services Inc to enable better cash flow management regarding its growing supply chain requirements.
Price Action: AUVI shares are trading higher by 18.74% at $1.1399 on the last check Friday.
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Source: https://finance.yahoo.com/news/applied-uv-gains-manufacturing-agreement-191525366.html