|By Marketwired .||
|December 3, 2013 04:37 PM EST||
TORONTO, ONTARIO -- (Marketwired) -- 12/03/13 -- Innovative Composites International Inc. (CNSX: IC)(OTCQX: ICIZF) ("ICI", or the "Company") is pleased to provide the following business update. The Board and Management of ICI are committed to keeping investors up to date and aware of the Company's progress. This initiative will be accomplished through various avenues, including press releases announcing material events, the CNSX monthly progress report which is posted on the ICI company page on the CNSX webpage and by hosting investor calls concurrent with the release of quarterly financial results
The Company is pleased with the results of its debenture financing, pursuant to which it issued an aggregate of $3,166,875 of debentures in two tranches, as press released on September 5, 2013 and October 7, 2013. In addition the Company has closed on its previously announced line of credit financing with mBank of Michigan in the amount of $1.5 million as press released on November 8, 2013. This line of credit is secured by a pledge of accounts receivable, inventory, and cash. The support of the State of Michigan Collateral support program was instrumental in ICI securing the line. Proceeds from the line will be used to assist the Company in fulfilling its sales orders, and for general working capital purposes.
The Company has a diversified client base of 13 global customers across the automotive, transportation and industrial market segments. Many of these clients provide spot purchases through Purchase Orders (PO's) rather than fixed long-term contracts. Some recent developments include:
In July 2013 the Company's product was recognized as "innovative design of the year" at the 2013 dealer design awards for refrigeration. ICI continues to conduct monthly business in this vertical and looks forward to growing this opportunity.
Industrial Applications / Acoustic Highway Fencing
Paragon Noise D-Fence has recently received product approval from the North Carolina Department of Transportation. These panels are a unique and cost effective highway noise reduction solution that can be installed between traditional steel I-beams, concrete or glulam columns. ICI has worked with Paragon Noise Barriers since March 2012, supplying its patented RMORskin product to the outside panels of their highway fencing; however most recently ICI has provided custom lamination services that are more efficient, faster and less expensive than the previous solution. As a result Paragon was recently awarded a Georgia Department of Transportation project - "The Henry County project", for 600,000 square feet of highway acoustic fencing. ICI is working to secure firm purchase orders from Paragon on this project of which the Company has secured the initial commitment. This significant PO, if fully awarded, is expected to be serviced beginning in the latter portion of 2013 and continuing on into the early months of 2014.
Flexible Retail Environments
Oasis International Inc. ("Oasis") is a recent new client acquisition. The Executive Chairman and Founder of Oasis is also the CEO of ICI and Oasis is a company founded and controlled by Mr. Rivers. The first project to market for ICI and Oasis was recently completed providing further validation of the ICI product application. ICI successfully delivered a unique, flexible retail space to Oasis for the launch of the PlayStation 4 gaming console across three locations, Montreal, Calgary and Scarborough. The Company provided to Oasis its proprietary composite materials to be utilized in the creation of these flexible retail environments. The Company is currently exploring how it may broaden its relationship with Oasis in an attempt to bring higher value added products into its production process. Oasis in conjunction with LS Travel Retail North America (www.lstma.com) is actively involved in the building out and re-furbishing of transportation hubs including 4,000 airport retail and premium branded mobile pop up locations and 600 train stations globally.
The Company continues to allocate funds to support its on-going IP portfolio ensuring that relevant patents and trademarks are up to date with regard to key filings and submissions.
The Company continues to monitor its direct labor and indirect labor at both plant locations and recently gained approval from key suppliers and clients to allow production to take place in either facility. This provides for greater flexibility and utilization of its workforce.
Comments from the CEO
Company CEO Mark Rivers stated, "The Board and Management of ICI are excited and encouraged by the combination of events summarized above The Company continues to manage its cash flow and margins aggressively to ensure that it is able to translate its sales progress into bottom line success.
"A further key initiative in the last month has been the development, approval and implementation of a compensation program for ICI senior management, staff and team. The plan is based on four key objectives: to retain, to engage, to align and to preserve cash. The success of ICI depends very much on its talent and the engagement and loyalty of a relatively small team and work force that we need to be able to adapt and work with us as we build our momentum. This compensation plan made significant use of our options to preserve cash and to incentivize the team.
"ICI continues to make progress and is dedicated to getting the Company back on a firm footing and to moving ahead in building a successful company after a very tough period in its evolution. The dedicated and talented team, the ongoing commitment of the board in time and money and our loyal shareholder base has made this initial progress possible. There is a lot of work still ahead and we will do our utmost to continue to keep all interested parties informed of developments."
About Innovative Composites International Inc.
Headquartered in Toronto, Canada, Innovative Composites International Inc. is a high-tech engineering and manufacturing company whose goal is to utilize its proprietary "green" composite materials and building systems to provide innovative, engineered product solutions to markets that include automotive and transportation, shelters and containers, construction and housing, and industrial applications.
To find out more about ICI please visit our website at: www.innovativecompositesinc.com.
Statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for ICI's products and the availability of funding. These forward-looking statements are made as of the date hereof and ICI does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from ICI's expectations and projections.
The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.