Flameret, Inc. Signs Letter Of Intent to Acquire Winner Garment Industries, Ltd.
16 September 2010 - 10:00PM
Business Wire
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.
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