Author: Atrium Research September 30, 2026
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
Luca Perna | Equity Research Associate | [email protected] | 647-969-1027
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What you need to know:
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FCLX announced that it has signed a strategic integrated safety purchase order with Kia Georgia, U.S. manufacturing subsidiary of Kia Corporation which operates the automaker’s assembly plant in West Point, Georgia.
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FCLX will provide risk assessment, fire protection engineering, and safety protocols designed to protect personnel, assets, and surrounding environments.
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The Company recently completed its corporate rebrand to FCL-X Fire & Safety and closed on a $5.1M equity financing.
Yesterday after market close, FCL-X Fire & Safety Inc. (FCLX:TSXV, FCLIF:OTCQB, K0Q:FSE), previously known as Full Circle Lithium, announced that it has secured a strategic integrated safety purchase order from Kia Georgia. The order aims to advance battery safety at its plant and, in our view, serves as a stamp of approval for FCL-X as an integration partner. We are maintaining our BUY rating and our C$0.60/share target price on FCLX.
The integrated safety purchase order (ISPO) serves Kia’s West Point, Georgia facility and builds on years of strong relationships between the two companies, with Kia donating several electric vehicles for FCLX to test its products on. For reference, the Georgia plant employs over 3,000 people and has annual production capacity of over 300K vehicles. The engagement includes construction support and HSE (health, safety, and environmental) services, where FCLX will provide risk assessment, fire protection engineering, and safety protocols designed to protect personnel, assets, and surrounding environments. The order validates the product and allows FCLX to become integrated into Kia’s operations, something which can be repeatable to other automakers and other industries. There was not a dollar figure or term placed on the deal, but we already expect major growth in our model for FY27. For FY27, we are now modelling revenue of $3.1M, representing 241% YoY growth alongside 62% gross margins.
Q3 Financial Highlights On September 28ᵗʰ, FCLX reported Q3/26 results (ending July 31ˢᵗ), with revenue of $0.2M coming in ahead of our $0.1M estimate and up 264% YoY, driven by higher online sales following the Company’s first major U.S. retail launch in May. Gross margin came in at 29%, and Adj. EBITDA of ($0.7M) was in line with our estimate, while the net loss of ($0.8M) was slightly better than our ($0.9M) estimate. The Company also built inventory to $0.6M (vs. $0.1M at fiscal year-end) ahead of its retail rollout. FCLX ended the quarter with $3.0M in cash and no debt, or $3.7M pro forma the second tranche of its private placement.
Private Placement Closed On August 14ᵗʰ, the Company closed the second and final tranche of its non-brokered private placement, issuing 4.28M units at C$0.40/unit for gross proceeds of C$1.71M. Combined with the first tranche, which closed in July, FCLX issued a total of 12.85M units for proceeds of C$5.14M, above the initially announced C$5.0M. Each unit consists of one common share and one-half of a warrant exercisable at C$0.70 for 18 months, subject to an acceleration provision if shares trade at or above C$1.20 for ten consecutive trading days.
Catalysts
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Quarterly Financial Results & Sales Partnerships – Ongoing
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Takeout Target – Ongoing
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Atrium Research Ratings System
BUY: The stock is expected to generate returns of over 20% over the next 24 months.
HOLD: The stock is expected to generate returns of 0-20% over the next 24 months.
SELL: The stock is expected to generate negative returns over the next 24 months.
NOT RATED (N/R): Atrium does not provide research coverage on the respective company.
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