BK Technologies signs manufacturing, supply agreement with East West

BK Technologies has signed a manufacturing and supply agreement with East West Manufacturing to transition BK’s West Melbourne, Florida manufacturing activities to East West’s facilities. East West will become the exclusive manufacturer of the Company’s radio product line. With the transition of its manufacturing operation to East West, the Company’s West Melbourne facility will solely focus on new product introductions to support BK’s engineering programs and customer repair services. Based in Atlanta, Georgia, East West is an integrated design, engineering, manufacturing, and distribution services partner for original equipment manufacturers and distributors throughout North America and Europe. It is a portfolio company of MSD Partners. Under the terms of the Agreement, East West will make, in aggregate, a $2,000,000 investment in the Company. This includes the purchase of 77,520 shares of BK at a price of $12.90 per share, representing an investment of $1,000,000. East West will also receive Warrants to purchase 135,500 shares of BK at a strike price of $15.00 per share. The Warrants have a term of five years from the issuance date. Manufacturing of BK Technologies products is expected to begin at East West during the first quarter of 2024 with the full operational transition expected to be completed within the ensuing six months. The move will take place in stages and BK Technologies is taking precautions to prevent any production or delivery delays associated with the factory transition.