VLVT News via E-mail
LOS ANGELES, Aug 18, 1999 /PRNewswire via COMTEX/ -- VELTEX
CORPORATION (OTC Bulletin Board: VLVT) announced today that it has
signed a letter of intent to acquire Noba Textile Ltd., a
well-established textile mill near its existing facility in Bangladesh.
Noba Textile Ltd. reported 1998 revenues in excess of $5,000,000 and
earnings of nearly $1,000,000. VELTEX proposes to acquire the company
with a combination of cash and restricted stock. The transaction is
expected to be completed in the next 30days.
Currently VELTEX has 5,470,330 shares of common stock outstanding. The
float is estimated at 1.9 million shares. VELTEX' net income for the
first half of fiscal year 1999 was $570,317, or $0.10 per share
compared to $282,214, or $0.05 per share, a year ago. Gross revenue for
the first six months of fiscal year 1999 totaled $2,773,791, an
increase of $1,080,045 or 64% from $1,693,746 over the comparable
period of last year.
VELTEX CORPORATION President and Chairman, Javeed A. Matin, indicated
he was optimistic about completing the transaction. "Upon successfully
completing the acquisition of Noba Textile Ltd., we will immediately
increase our production capabilities by a multiple of three or more.
Such increased capacity should have a profound effect on our revenues
and our bottom line results as well."
Matin also acknowledged that he still seeks to purchase additional
production equipment to further increase his existing plant's capacity.
"At least one additional acquisition candidate, located in the U.S.,
and not in VELTEX' traditional textile business, is being considered,"
said Matin.
VELTEX CORPORATION is a manufacturer and distributor of high-quality,
specialty textiles primarily for use by manufacturers of furniture,
automobile interiors, and ready-to-wear garments. Its manufacturing
facilities, managed by a former U.S. textile industry executive with
more than 30 years experience, are strategically located in Comilla,
Bangladesh employing 315 people. This location permits quota-free
importing to USA markets thereby affording significantly higher profit
margin potential than its competitors in India and Pakistan. Company
sales and distribution centers are located in the prestigious
California Mart in Los Angeles as well as in Canada, Europe, Asia and
Bangladesh.
Reader's Caution: Statements contained in this press release are
basedon information provided by the company and are believed to be
reliable. The statements are not to be construed as investment advice.
The Publisher as to the financial condition, business, or other factors
of the company. This release may contain forward-looking statements
within the meaning of the private securities litigation reform act of
1995, such as expectations regarding the planned dates for commencement
of proposed projects and the scope of those projects. Such
forward-looking statements are inherently uncertain, and the actual
results may differ from management's expectations. These uncertainties
may include, without limitation, continued acceptance of the company's
products and services, increased levels of competition, competitive new
products and technological changes, and the company's dependence upon
financing, third-party suppliers, and intellectual property rights.
Further information on potential factors which could affect the
financial condition and results of operations of the company may be
detailed from time to time in the company's federal filings, annual
report, offering memorandum, or prospectus.
SOURCE Veltex Corporation
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com -0-
CONTACT: Javeed A. Matin of Veltex Corporation, 213-627-9194; or
Barry
S. Kaplan of Barry Kaplan Associates, 732-747-0702, fax
732-758-1837, for
Veltex Corporation
(VLVT)
|
