FSI ANNOUNCES THE COMPANY HAS TRADED EQUITY IN THE FLORIDA LLC FOR EXCLUSIVE PRODUCT RIGHTS

FSI secures exclusive rights to four ag products across LATAM, signaling 2026 revenue recovery

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  <section data-block="information">
    <h3>Information</h3>
    <p>&lt;link type=&quot;text/css&quot; rel=&quot;stylesheet&quot; href=&quot;https://www.globenewswire.com/styles/gnw_nitf.css&quot;&gt;&lt;/li...</p>
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    <h3>AI Summary</h3>
    <p>Flexible Solutions International now holds perpetual, exclusive rights to four agricultural products and related IP across the Americas south of the US border, expanding its revenue base beyond core environmental tech. The prior FL LLC stake sale and funding lapse underscore execution risk, but management expects meaningful revenue progress in the second half of 2026 as sales recover.</p>
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    <h3>Key Points</h3>
    <ul><li>FSI gains perpetual, exclusive rights to four agricultural products in broad territory.</li><li>Previously sold 30.1% of FL LLC for $2M; payments faltered.</li><li>Management expects revenue recovery with progress in the second half of 2026.</li><li>CEO notes decade-long production in these markets; potential strategic upside.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Flexible Solutions International, Inc. (FSI)</strong>: Holdings of exclusive ag-product rights position potential revenue growth; key catalyst is H2 2026 progress.</li><li><strong>FL LLC (N/A)</strong>: Previously 30.1% stake sold; remaining 19.9% now traded for exclusive rights; funding issues create execution risk.</li><li><strong>Acquirer (FL LLC investor) (N/A)</strong>: Unable to fund annual payments; impact is primarily on FSI&#039;s revenue timeline and risk.</li><li><strong>NanoChem Solutions Inc. (FSI subsidiary) (N/A)</strong>: TPA-based polymers for scale inhibition and crop enhancement; supports FSI&#039;s broader product ecosystem.</li></ul>
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  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>Category: Corporate Developments. The article describes a strategic licensing/rights transfer that could alter FSI&#039;s revenue mix and geographic exposure, marking a notable corporate development with potential earnings impact.</p>
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    <h3>Market-Moving</h3>
    <ul><li>Exclusive rights to four products could unlock LATAM revenue and diversify FSI&#039;s mix.</li><li>Past FL LLC funding issues raise risk of delayed payments or renegotiation.</li><li>Timeline to revenue progress in H2 2026 creates near-term catalysts and volatility.</li><li>FSI&#039;s shift toward ag products may broaden cash flow sources beyond core tech.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>FSI trades remaining FL LLC stake for exclusive rights to four agricultural products and IP.</li><li>On Aug 12, 2024, FL LLC 30.1% stake was sold for $2 million with five annual $800k payments.</li><li>The acquirer has been unable to fund the annual payments.</li><li>Territory defined as South of the Mexico/US border, including Central and South America and the Caribbean.</li><li>Exclusive rights cover four agricultural products; IP rights included.</li><li>Management expects significant revenue progress in the second half of 2026.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Buy FSI on expected LATAM revenue uplift from exclusive rights, with catalysts in H2 2026.</p>
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  <h2>FSI Completes Trade of FL LLC Equity for Exclusive Agricultural Product Rights</h2>

  <p><strong>TABER, ALBERTA</strong>, July 03, 2026 (GLOBE NEWSWIRE) -- FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE-AMERICAN: <strong>FSI</strong>), is the developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients and water treatment as well as crop nutrient availability chemistry. Flexible Solutions also manufactures biodegradable and environmentally safe water and energy conservation technologies. In addition, <strong>FSI</strong> is increasing its presense in the food and nutrition supplement manufacturing markets. Today, the Company announces that it has traded the remaining <strong>19.9%</strong> of the FL LLC for exclusive rights to make and sell certain agricultural products in certain markets.</p>

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    <h3>Transaction History and Current Rights</h3>
    <p>On August 12<sup>th</sup>, 2024 the Company sold <strong>30.1%</strong> of the equity in the FL LLC to an acquirer for <strong>$2 million</strong> and five annual payments of <strong>$800,000</strong>. The acquirer has been unable to fund the annual payments.</p>
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    <h3>Key Terms of the Agreement</h3>
    <p>As a result, the Company has been granted the perpetual, exclusive rights to 4 agricultural products and the IP of those products in the territory. The territory is defined as South of the Mexico/US border including all of Central America, South America and the Caribbean.</p>
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    <h3>Management Commentary</h3>
    <p>Mr. Dan O’Brien, CEO, comments, "We have been making these products for these countries for a decade and believe that now that we have sales rights for them, lost sales can be recovered and the historic revenue we saw from the FL LLC investment can be realized again." Mr. O’Brien continues, "Full revenue recovery will not be immediate but we feel that significant progress will be made in the second half of 2026."</p>
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  <section>
    <h3>About Flexible Solutions International</h3>
    <p><strong>About Flexible Solutions International</strong></p>
    <p>Flexible Solutions International, Inc. (<a href="https://www.globenewswire.com/Tracker?data=8TLWZaT82h3qsi3QmbrXg_AweXkrMCeVzohUWpUWrWvTDTsNNxik89ladGJy8ZGh3irH9P-P40o9UHhNHES2hc2Bzf9NxSTecTi9n6dTgBAJXzmKLpSbPIBx96rZNg2o" rel="nofollow" target="_blank">www.flexiblesolutions.com</a>), based in Taber, Alberta, is an environmental technology company. The Company’s NanoChem Solutions Inc. subsidiary specializes in biodegradable, water-soluble products utilizing thermal polyaspartate (TPA) biopolymers. TPA beta-proteins are manufactured from the common biological amino acid, L-aspartic and have wide usage including scale inhibitors, detergent ingredients, water treatment and crop enhancement. Along with TPA, this division started producing other crop enhancement products as well. In 2022, the Company entered the food and nutrition markets by obtaining FDA food grade approval for the Peru IL plant. The other divisions manufacture energy and water conservation products for drinking water, agriculture, industrial markets and swimming pools throughout the world.</p>
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  <section>
    <h3>Safe Harbor Provision</h3>
    <p>The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward looking statement with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed

Flexible Solutions International now holds perpetual, exclusive rights to four agricultural products and related IP across the Americas south of the US border, expanding its revenue base beyond core environmental tech. The prior FL LLC stake sale and funding lapse underscore execution risk, but management expects meaningful revenue progress in the second half of 2026 as sales recover.

FSI ANNOUNCES THE COMPANY HAS TRADED EQUITY IN THE FLORIDA LLC FOR EXCLUSIVE PRODUCT RIGHTS

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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