PayChest Signs Letter of Intent to Acquire Xinpro Manufacturing
03 May 2012 - 1:33AM
Marketwired
PayChest, Inc. (PINKSHEETS: PYCT)
PayChest Inc. (the "Company") is pleased to announce that,
following the recently received $1.2 million Purchase Order, the
Company has signed a Letter of Intent with Xinpro Manufacturing to
acquire their business, as allowed under the terms of the
Manufacturing Agreement.
The acquisition of Xinpro, when completed, adds a new line of
business to PayChest allowing it to manufacture and sell
biodegradable films; a growing field. It would also diversify the
Company's revenues and risk, and sets the stage for the rollout of
other product lines. In addition to the large sanitary products
market, the acquisition would create the opportunity to move into
the medical and bio-plastics fields.
As announced on March 2, 2011, the Manufacturing Agreement with
Xinpro Manufacturing became effective upon the set up of a
production facility and delivery of the first machine tailored
exclusively for the manufacture of Flushaway® products. Production
of polyvinyl alcohol film is a key component in Mibella® and
Flushaway® products that can be used in other applications.
The acquisition of Xinpro allows PayChest to capture more of the
profits associated with the Mibella® and Flushaway® product sales
thereby increasing Company profitability.
The opportunity to acquire Xinpro has been made possible
following the recent, first purchase order of $1.2 million for
Mibella® that triggers an option to acquire Xinpro. Other purchase
orders are being negotiated.
Historical news releases on the Company can be found at
http://www.paychest.com/news.htm.
NOTES ABOUT FORWARD-LOOKING STATEMENTS
Except for any historical information contained herein, the
matters discussed in this press release contain forward-looking
statements that involve risks and uncertainties, including those
described in the Company's filings with OTC Markets
http://www.otcmarkets.com/stock/PYCT/financials.
Certain statements contained in this release that are not
historical facts constitute forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995,
and are intended to be covered by the safe harbors created by that
Act. Reliance should not be placed on forward-looking statements
because they involve unknown risks, uncertainties and other factors
which may cause actual results, performance or achievements to
differ materially from those expressed or implied. Forward-looking
statements may be identified by words such as estimates,
anticipates, projects, plans, expects, intends, believes, should
and similar expressions and by the context in which they are used.
Such statements are based upon current expectations of the Company
and speak only as of the date made.
Contact: PayChest, Inc. ir@paychest.com Tom Hands 1-416-619-5242
from overseas: +1-416-619-5242 Tobie Oliver 1-800-624-7479 from
overseas: +1-714-274-7206
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