Flow Beverage Corp. and BioSteel Sports Inc. enter into 3-year manufacturing agreement

Flow Beverage Corp. and BioSteel Sports Inc. have entered into a manufacturing agreement whereby Flow will manufacture and package BIOSTEEL-branded sport hydration beverages in the Tetra Prisma^® format. Flow has been a manufacturer of BIOSTEEL-branded beverages since 2020. On December 1, 2023, BioSteel Sports, a recently incorporated company controlled by Dan Crosby, acquired from DC Holdings LTD certain assets that were previously owned by BioSteel Sports Nutrition Inc.

The Agreement has a term of three years, with commitments from BioSteel Sports to purchase minimum annual volumes (the “Minimum Annual Volumes”) which equate to approximately $19.3 million in revenue over the Term. Additionally, the Agreement has a take-or-pay provision requiring that BioSteel Sports pay Flow the equivalent of 80 % of the value of the difference between the applicable Minimum Annual Volume and the actual volume purchased during the relevant 12-month period over the Term. The Agreement provides for the committed purchase of 12 million units within the first 4 months of the Agreement, 1,062,500 averaged minimum committed purchases of packs per month for the remainder of current calendar year, and a cumulative minimum production of 24,000,000 packs for each subsequent calendar year under the Term.