Flameret, Inc. (the "Company"), (OTCBB: FLRE), today announced that it has signed a Letter of Intent to acquire all of the issued and outstanding capital stock of Winner Garment Industries, Ltd. ("Winner"), a privately-held Canadian company with its office located in Alberta, Canada.

Ben Wong, President of Winner, stated, “The Board of Directors of Winner and Winner’s management has carefully weighed all aspects of this contemplated transaction and have concluded that, this is an exciting opportunity for Winner. As part of a public entity, Winner will now be able to access the public market for capital to enhance the future growth of our business. We believe that Christopher Glover overseeing our board of directors will be significant because of Chris’s experience in the public financial markets. Flameret’s patented fire retardant products, as well as their public status, will provide Winner an opportunity to expand our distribution at an exponential rate.”

Under the terms of the Letter of Intent, the Company would acquire all of the outstanding shares of Winner in exchange for shares of the Company pursuant to a contemplated share exchange agreement (the “Acquisition”). The Company expects to close the Acquisition in the quarter ending December 31, 2010. Following the closing of the anticipated Acquisition, Winner would be a wholly owned subsidiary of the Company.

The Acquisition is subject to a number of conditions, including the execution of a definitive share exchange agreement, stockholder approval, the completion of certain financing arrangements, and further due diligence.

Commenting on the potential Acquisition, Christopher Glover, President and CEO of the Company said, “Winner is a nice match for the criteria that we have been seeking in an acquisition target in order to enhance shareholder value.” Mr. Glover stated further that “It is apparent that Winner has a thirty five year history of supplying quality clothing and products to numerous distributors and customers around the world. “With gross revenues in excess of 8 Million dollars per year over the last 5 years, and an equally impressive profit average of 1.8 million annually makes Winner Garment a great acquisition and makes total financial sense for Flameret Inc.

“Our patented fire retardant products will provide a natural compliment to Winner’s existing specialized industrial protective wear and sportswear, and we look forward to growing Winner under the Flameret umbrella.”

About Flameret, Inc.

Flameret Inc. has developed fire retardant products to suit a wide range of applications. These are marketed under the brand names Flamex(TM), Ultra Flamex(TM) and Impex(TM). Flameret(TM) products are patented and held in the name of United American Inc.

Flameret's numerous flame retardant products are applicable for the manufacturing of an array of textile applications for mattresses, bedding, furniture, and clothing. The Company has designed fire resistant textiles and fire barriers to meet the US standard and other world markets. Our complete fire retardant product lines should compete favorably with other competitors because Flameret's(TM) fire retardants are highly effective and non-toxic.

Flameret Fire Retardant and fire resistant applications will be sold to separate industries. These industries include the fire resistant textiles industry, the military and the energy extraction industry [oil fields], the aviation industry, and forestry services. The Company expects to manufacture and sell Flameret fire retardant products for the treatment of textiles lines at production stage for various textile products. In the near future Flameret also plans to offer a complete line of fire extinguishing products.

About Winner Garment Industries, Ltd.

In 1975, Winner Garment Industries was founded by Ben Wong in Edmonton, Alberta, Canada. Winner Garment Industries started in a 600 square foot shop that focused on embroidery and custom cresting of outerwear.

Today, Winner Garment has grown to a 50,000 square foot design and manufacturing facility with a 1,500 square foot showroom. Their in-house design department has fully computerized embroidery, silk screening, and clothing design capabilities allowing them to make custom designed and fitted orders for any quantity and deadline.

In addition to continuing their excellence in custom cresting, Winner Garment specializes in industrial protective wear (e.g. fire resistant coveralls) and sportswear.

For information concerning Flameret Inc., please visit the Company's website at www.flameret.com.

The press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to the Company's development program and any other statements that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to difficulties or delays in development, testing, regulatory approval, production and marketing of the Company's products, the uncertainty of patent protection for the Company's intellectual property or trade secrets, and the Company's ability to obtain additional financing. Such statements are based on management's current expectations, but actual results may differ materially due to various factors, including those risks and uncertainties mentioned or referred to in this press release.

Flameret (PK) (USOTC:FLRE)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Flameret (PK) Charts.
Flameret (PK) (USOTC:FLRE)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Flameret (PK) Charts.