November 12, 2020 | Montréal, Québec
5N Plus Inc. (TSX:VNP) (“5N Plus” or the “Company”), a leading producer of engineered materials, announced today that it has secured multi-year contracts for the supply of semiconductor materials associated with the manufacturing of thin-film photovoltaic (PV) modules by First Solar, Inc. (Nasdaq: FSLR).
The terms of these contracts are structured asymmetrically with lower volumes anticipated in the earlier period of the contract. 5N Plus has been a key supplier of semiconductor materials to First Solar, Inc., since 2007 and over this period several long-term contracts have been signed and successfully executed between the two companies. During this period 5N Plus has become the world leading supplier of engineered semiconductor compounds to the thin-film Renewable Energy Industry, enabling its customers to deliver reliable and cost-effective solutions to the market.
5N Plus semiconductor materials are imbedded in First Solar’s Series 6 module in a specialty semiconductor stack which is 33 times thinner than the thickness of a human hair. The Series 6 module has a carbon footprint that is up to six times lower and a water footprint that is up to 24 times lower than crystalline silicon PV panels. Given the fact that a large portion of 5N Plus’ production activity related to these semiconductor compounds is powered by renewable energy, Series 6 modules produced with 5N Plus semiconductor thin-film materials deliver the lowest carbon solar available today.
Nicholas Audet, Executive Vice President – Electronic Materials, commented “We are pleased to continue building a strong relationship with First Solar based on many years of successful and proven partnership between our two companies. The signing of the most recent long-term agreement is yet another confirmation and a positive step in that direction.”
Mr. Audet added “5N Plus recognizes that economics will largely govern the rate of growth in renewable energy sector. Consistent with this view, the Company has continued to invest in process and product technologies, aiming to optimize the balance between cost and performance of its engineered semiconductor compounds used in thin-film solar technology.” Mr. Audet concluded “The specialty semiconductor market continues to be a natural growth space for our company as we further expand our portfolio of advanced engineered materials based on unique value propositions desired by our customers across a broad spectrum of applications.”
5N Plus is a leading global producer of engineered materials and specialty chemicals with integrated recycling and refining assets to manage the sustainability of its business model. The Company is headquartered in Montreal, Québec, Canada and operates R&D, manufacturing and commercial centers in several locations in Europe, the Americas and Asia. 5N Plus deploys a range of proprietary and proven technologies to manufacture products which are used as enabling precursors by its customers in a number of advanced electronics, optoelectronics, pharmaceutical, health, renewable energy and industrial applications. Many of the materials produced by 5N Plus are critical for the functionality and performance of the products and systems produced by its customers, many of whom are leaders within their industry.
Certain statements in this press release may be forward-looking within the meaning of applicable securities laws. Forward-looking information and statements are based on the best estimates available to the Company at the time and involve known and unknown risks, uncertainties or other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting the Company’s business and activities appears under the heading “Risk and Uncertainties” of the 5N Plus’ 2019 MD&A dated February 25, 2020 and note 10 of the unaudited condensed interim consolidated financial statements for the three and nine-month periods ended periods ended September 30, 2020 and 2019 available on www.sedar.com.
The Company is not aware of any significant changes to its risk factors previously disclosed, however since January 2020, the gradual outbreak of the novel strain of the coronavirus, COVID-19 and its declaration as a pandemic by the World Health Organization, has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures have caused material disruption to businesses globally resulting in an economic slowdown. While the Company has been able to mitigate the short-term impact from the crisis, it is not possible to reliably estimate the length, severity and long-term impact the global pandemic may have on the Company's financial results, conditions and cash flows. The outbreak of the COVID-19 should be considered a new risk factor.
Forward-looking statements can generally be identified by the use of terms such as “may”, “should”, “would”, “believe”, “expect”, the negative of these terms, variations of them or any similar terms. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that 5N Plus will derive therefrom. In particular, no assurance can be given as to the future financial performance of 5N Plus. The forward-looking information contained in this press release is made as of the date hereof and the Company has no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing undue reliance on these forward-looking statements.
Chief Financial Officer
5N Plus Inc.