Spectaire Holdings Inc. (NASDAQ:SPEC) (“Spectaire” or the “Company”), a leader in air quality monitoring and emissions reduction technology, today announced further details of its balance sheet-light business model in form of manufacturing financing agreements with Viva Capital Funding, LLC (“Viva”).
The agreement with Viva allows Spectaire to dramatically lower the working capital needs in the production of AireCore™ units to reach this market. The Company believes this capital-efficient financing structure, together with the outsourcing of manufacturing of AireCore™ units to Columbia Tech, a subsidiary of Coghlin Companies, creates an asset-light production model that will enable Spectaire to achieve positive free cash flow in a shorter time frame.
“Now that we have commenced shipping AireCore™ – priced at $2000 per unit with $1000 per unit annual recurring revenue – to our first customers, I am excited to announce our agreement with Viva, the final missing piece of our asset-light business model,” said Leonardo Fernandes Chief Financial Officer of Spectaire. “Taken together with the manufacturing agreement with Coghlin, it enables us to scale our operations in a capital-light manner and keep our team focused on the vast commercial opportunities ahead.”
Brian Semkiw, CEO of Spectaire, added: “One day, I expect AireCore™ to be as prevalent as the catalytic converter, as the number of global road freight vehicles is projected to grow to 333 million by 20501 from nearly 200 million in 2023. We now have a capital partner that will allow us ramp up our mass manufacturing capability, largely removing the capital constraints associated with this growth.”
“We are proud to support Spectaire’s growth and innovation with our flexible financing options,” stated Sarah Williams, VP of Sales for Viva Capital. “We believe in their vision and are excited to be a part of their success story.”
For more information, please visit the Company’s investor relations website at ir.spectaire.com.
