|By Marketwired .||
|August 6, 2014 06:04 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 08/06/14 -- Innovative Composites International Inc. (CSE: IC) ("ICI", or the "Company") is pleased to announce that it has closed its previously announced asset sale, pursuant to which ICI's wholly-owned subsidiary, Innovative Composites, Inc. (the "Subsidiary"), has sold all of the assets located at the Subsidiary's facility in Sault Ste. Marie, Michigan (the "Facility") for aggregate consideration of US $1,300,000 (the "Transaction").
ICI and the Subsidiary have provided the purchaser with an exclusive right and license for the use of all intellectual property used in the operation of the Facility. This intellectual property license is limited to the automotive industry (trucks and buses) and is irrevocable, subject to the purchaser paying a royalty equal to 2.5% of collections from the sale of products utilizing the licensed intellectual property.
ICI intends to use the proceeds of the Transaction to repay indebtedness related to the Facility and for general corporate purposes.
"This is a very positive event for us which allows us to focus our business, operations, cost and structure on one plant location, which is appropriate for our size and gives us a much needed injection of cash, thanks to the support of our investors and shareholders," said Mark Rivers, Chief Executive Officer of the Company. Mr. Rivers continued, "We are able to exit one of our two locations while maintaining our commitment to our employees and Michigan stakeholders by selling the business as an ongoing operation. This truly is a win-win for everyone involved and we look forward to a reenergized focus on developing our construction applications and award winning industrial enclosure. Additionally, we are working with one of our investors to actively commercialize our fire retardant products for use in the wildfire fighting industry."
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 shelters and containers, construction and housing, and industrial applications.
To find out more about ICI please visit our website at: www.innovativecompositesinc.com.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.