First Breach Inc. (NASDAQ:FBDT) has announced a primer supply agreement, two additional ammunition inspection units and a separate raw material supply agreement for its operations in Hagerstown, Maryland. The company said the measures are intended to support material availability, inspection capacity and its planned expansion of ammunition manufacturing.
#Primer supply agreement
Under the agreement with a strategic supplier, First Breach has the ability to purchase up to 20 million primers per month. The arrangement adds to the company’s existing supplier relationships and provides another external source for primers, which are one of the two finished ammunition components it purchases from outside suppliers.
First Breach said primers and propellant powder are the only finished ammunition components it sources externally. The company manufactures brass cups, casings, projectiles, lead cores and lead wire at its facility.
#Inspection equipment added in Maryland
The company has also received two additional pieces of ammunition inspection equipment. First Breach said the units supplement equipment obtained earlier this year and are intended to increase inspection throughput at its ISO 9001:2015-certified Hagerstown site.
According to the company, the added inspection capacity is intended to support higher ammunition volumes alongside quality controls used throughout production. First Breach said the equipment additions build on its earlier investment in loading and inspection systems.
#Raw material sourcing
First Breach has entered into a separate agreement with a key raw material supplier. The company said the arrangement is intended to improve access to materials that it smelts and processes in-house, while more favorable supply terms support their reliability and availability as manufacturing scales.
#Production plans
First Breach said it plans to expand ammunition production toward capacity of up to 20 million rounds per month. The company linked that plan to extending its current seven-day production schedule and moving toward 24-hour operations.
Jeffrey Low, First Breach’s CEO, said the company’s equipment capacity needs to be supported by dependable material supply and consistent quality controls. He said the new arrangements bring the company’s sourcing and inspection capabilities closer to its production plans.
#Company background
First Breach describes itself as an ISO 9001:2015-certified, American-made defense technologies company. Its activities include manufacturing match-grade ammunition components and finished ammunition, as well as developing next-generation unmanned aerial systems for commercial, law enforcement and military markets.
The company said its unmanned systems work involves engineering, robotics, ISR and sensor technologies, and precision manufacturing for defense, homeland security, law enforcement and commercial requirements in domestic and international markets.
#Forward-looking statements
First Breach said statements about its production plans, business prospects and future performance are forward-looking and involve risks and uncertainties. The company identified factors including economic, market, competitive, regulatory, technological, legal and geopolitical conditions, along with customer demand, access to capital and its ability to execute its business strategy. It said actual results may differ materially from those statements.
#Key Takeaways
- First Breach can purchase up to 20 million primers per month under a new supplier agreement.
- The company has received two additional ammunition inspection units for its Hagerstown, Maryland facility.
- A separate raw material agreement is intended to support access to materials processed by First Breach in-house.
- First Breach said it plans to scale toward capacity of up to 20 million rounds per month while moving from its current seven-day schedule toward 24-hour operations.
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