John,
I gather that the following PR was what you were referring to. It is a little more definitive than the original announcement, but you're right, nobody is jumping up and down about this agreement so far.
On another note, I've heard that CII has ordered another fabrication unit to put out more product. The machine is apparently scheduled for delivery and installation by early January, 2000 and I understand that they will be needing the machine to fill existing orders.
Since one of these machines is capable of producing ~ $5.0 Million/year in product, I take that to mean that management expects to see increases in deliveries in the near future.
If these things all come to pass at the same time (like the OTC Nasdaq listing, the increased orders to pharmaceuticals, the merger with the gel company and new 'sizeable' - $100,000+ - orders for the retail market via IIDA), and it looks like they will, we would have the ingredients for a very explosive move to the upside.
As for the downside, I think we're there. The present share price doesn't have very much risk in it, so I think that this really just leaves us with the possibility of the upside. We should know the answer very soon, but from my viewpoint it looks good.
Brian
P.S. Here's the PR:
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11/12/99 - Property Asset Agreement
CRYOPAK INDUSTRIES INC. ("CII") - Property-Asset Agreement The Vancouver Stock Exchange has accepted for filing a Sales Representative Agreement (the Agreement) dated November 1, 1999 between the Company's wholly-owned subsidiary, Cryopak Corporation (Cryopak), and International Industrial Development Associates Inc. (IIDA) (Fred Simon). The Agreement provides IIDA with the exclusive right to arrange sales of Cryopak's thermal packaging products to all retailers in the United States, as well as wholesalers selling into the retail marketplace.
The Agreement is for 5 years with an automatic extension if cumulative sales revenue of U.S.$20,000,000 is achieved. If certain cumulative
sales revenue targets are not met, Cryopak may terminate the Agreement or take away IIDA's exclusivity. IIDA will receive a 15% commission based on the Net Wholesale price of products sold and in addition will be granted a total of 2,000,000 Purchase rights, each right exercisable at $0.75 per share into one share of the Company. 50,000 rights are exercisable for every U.S.$1,000,000 of Sales revenue. Calculation of the number of rights earned and exercisable shall be made within 90 days of the end of each year during the initial 5-year term and such rights earned shall be exercisable for a period of six months.
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