Botex Receives Purchase Order From Gomma
Vancouver, B.C. - Botex Industries Corp.'s President Don Greer is pleased to
announce that the Company has received an initial purchase order from
Distribuidora Gomma S.A. de C.V. ("Gomma") of Leon, Mexico, for a single
injector JV-1Botex processing machine. The machine will be installed at Gomma's
factory in Leon, Mexico, at a price of CDN$800,000. This purchase order will be
funded through a joint venture and shared as to 60% by Gomma and 40% by
Botex, with Gomma retaining an option to buy out the Botex interest at any time at
cost. Botex will assemble the machine at the Company's facility in Langley, British
Columbia, and will receive Gomma's 60% payment on shipment. The shipment
date is scheduled for November, 1999.
The Gomma Group has over $1 billion in annual revenues, and is the largest rubber
manufacturer in Mexico, making products for major brand name shoe companies
(New Balance, Brooks, Timberland) and industrial sales (see their website at
www.gomma.com).
Conditional to this purchase order, Gomma signed a 10 year license contract to
purchase Botex concentrate exclusively from the Company for use in the machine.
The Company estimates that based on Gomma's projections, the annual value of
the concentrate license will average approximately $2 million per annum for this
one machine. Gomma will use this first machine to produce products for
internationally recognizable brand name shoe companies.
Gomma spent many months researching Botex's proprietary product and process.
Botex is very pleased to have such a large, well known company in the shoe
manufacturing business validate the Company's technology.
On behalf of Gomma, Botex has produced various prototypes of shoe components
under consideration for future production. Each of these newly developed
prototypes would require separate machines and licensing agreements. To
facilitate the strong demand for these products, Botex has agreed to produce
these products internally at the Langley facility. This creates cash flow for the
Company and satisfies the immediate product needs of Gomma and its
customers, while JV-1 machines are built and delivered.
Botex has developed and now markets a proprietary plastic based product that is
less expensive to produce and more versatile than rubber, allowing many different
characteristics (e.g. colour, varying hardnesses) to be produced in a single mould
process.
The Company relies on litigation protection for forward-looking statements.
ON BEHALF OF THE BOARD OF DIRECTORS
Don Greer, President
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this Release |
