Flow Beverage Corp. and BioSteel Sports Inc. Enter into 3-Year Manufacturing Agreement

Flow Beverage Corp. (TSX:FLOW; OTCQX:FLWBF) (“Flow”) and BioSteel Sports Inc. (“BioSteel Sports”) have entered into a manufacturing agreement (the “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 (dba Coachwood Group of Companies, an entity also controlled by Dan Crosby) certain assets that were previously owned by BioSteel Sports Nutrition Inc.

The Agreement has a term of three years (the “Term”), 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.

“It’s very exciting to be entering into this new partnership with BioSteel Sports, co-packing one of the most innovative brands in sports hydration and working closely with its new owner. Having also recently added BeatBox Party Punch alcoholic beverages and Joyburst energy drinks as co-pack partners, our Aurora production facility is scaling to meet this increased demand from brands and their consumers for premium and functional beverages offered in an environmentally conscious manner. The growth in our co-pack business is expected to contribute to ongoing improvements to profitability that have also included our restructuring, a transition to third-party logistics and the addition of a fourth production line in Aurora,” said Nicholas Reichenbach, Founder and Chief Executive Officer of Flow.