Sharps Technology's CEO Issues Corporate Update Highlighting Agreements for SecureGard and SoloGard and Revenue Developments from Manufacturing Operations in Hungary
NEW YORK, March 06, 2025 (GLOBE NEWSWIRE) --
Dear Fellow Shareholders,
As we reflect on the progress since our December update, I am excited to share the latest developments that will shape our Company's trajectory in 2025 and beyond. With the successful closing of a $20 million financing in January, we strengthened our balance sheet by securing working capital for operating and capital expenditures and paid down our debt to zero. We believe that we are now well-positioned to advance our operations in Hungary through the previously announced SoloGard and SecureGard agreements, alongside ongoing business development initiatives in the U.S. We remain fully committed to driving revenue from these agreements and continue to focus on strategic growth, operational efficiency, and value creation. This update offers a detailed overview of how we are utilizing the proceeds from the financing and outlines the Company's strategic direction moving forward.
Advancing the Five-Year Agreement with Strategic U.S. Medical Products Company for SoloGard
In July 2024, we announced an agreement with a prominent U.S.-based supplier of medical saline and water products to supply customized 10mL SoloGard syringes manufactured at Sharps' facility in Hungary. This collaboration establishes a five-year sales agreement for at least 500 million syringes, with the potential to generate approximately $50 million over the life of the agreement. We are on track to begin generating revenue in the second half of 2025. To date, we have been utilizing pilot tooling for initial material qualifications and concept product approvals. We have also placed orders for advanced production technology for SoloGard and will soon begin installation and operational qualification for the next phase of the project. We remain aligned with the customer and continue to work closely with them to qualify the parts and Sharps' production process.
Driving Business Development Activities with European Distributor to Support Major Healthcare Networks
In December 2024, we began deliveries for the qualification purposes of Sharps' SecureGard safety syringes, manufactured at our Hungary facility, under the previously announced sales agreement with a prominent European medical supply company serving Poland, Slovakia, and the Czech Republic. Early qualification processes are underway with healthcare groups, most notably Penta Hospitals International ("Penta"). Penta is the largest international chain of hospitals and outpatient clinics in Central and Eastern Europe, comprising 34 hospitals, 31 outpatient clinics, and 26 facilities for long-term care patients. We are currently shipping SecureGard to healthcare groups across Europe for qualification approval, and our team is working closely with them to secure orders. We remain committed to fulfilling shipments in the coming months.
Continued Demand for Sharps' Products and Manufacturing Expansion in Hungary
Our recent financing positions Sharps with working capital to expand operations in Europe by adding advanced machinery, expanding our workforce, and enhancing production capabilities. We continue to collaborate with both government and private investment sources in Hungary to increase our manufacturing footprint and meet the escalating demand for Sharps' SecureGard and SoloGard syringes. We believe that Sharps is well-positioned to capitalize on challenges facing customers who are dealing with industry headwinds such as tariffs, recalls, and quality issues with Chinese-made products.
The demand for our innovative injection solutions is growing rapidly, with injectables continuing to be the preferred delivery method for therapies in areas like vaccines, biologics, weight loss, ophthalmic and cosmetic applications, gene therapies, and diabetes and inflammatory disease management. Sharps is committed to advancing innovation in the syringe space and will keep you updated as our expansion efforts in Hungary progress.
Strategic Partnership for Manufacturing in South Carolina Remains in Progress
Our leadership team continues to negotiate with the selling partner on the previously announced project for manufacturing in South Carolina. Sharps is actively pursuing potential partners to expand U.S. capacity, and as these discussions progress, we will keep you updated on the status of confirmed negotiations.
2025 Growth Opportunities for SecureGard and SoloGard and Closing
In closing, we are fully committed to driving significant revenue from both the SecureGard and SoloGard projects. With the Company's recent financing, we believe that we are well-positioned to execute our growth strategy by utilizing new working capital for essential operating and capital expenses. With early production on track for the second half of 2025 and SecureGard shipments expected in the second quarter, we are confident in our revenue transition this year. We deeply appreciate the patience and support of our shareholders as these initiatives progress, and we will continue to provide updates as developments unfold.
Thank you for your continuing support and confidence in our Company. For more information, please visit www.sharpstechnology.com
Sincerely,
Robert Hayes, CEO Sharps Technology, Inc.
About Sharps Technology:
Sharps Technology is an innovative medical device and pharmaceutical packaging company offering patented, best-in-class smart-safety syringe products to the healthcare industry. The Company's product lines focus on providing ultra-low waste capabilities, that incorporate syringe technologies that use both passive and active safety features. Sharps also offers products that are designed with specialized copolymer technology to support the prefillable syringe market segment. The Company has a manufacturing facility in Hungary. For additional information, please visit www.sharpstechnology.com and these recent news stories: SecureGard sales agreement, SoloGard sales agreement.
FORWARD-LOOKING STATEMENTS:
This press release contains "forward-looking statements". Forward-looking statements reflect our current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan," "poised" or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements, include, but are not limited to, statements contained in this press release relating to our business strategy, our future operating results and liquidity, and capital resources outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, our ability to raise capital to fund continuing operations; our ability to protect our intellectual property rights; the impact of any infringement actions or other litigation brought against us; competition from other providers and products; our ability to develop and commercialize products and services; changes in government regulation; our ability to complete capital raising transactions; and other factors relating to our industry, our operations and results of operations. Actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity, performance, or achievements. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.
Investor Contact:
Holdsworth Partners
Adam Holdsworth
Phone: 917-497-9287
Email: [email protected]
