INTERNATIONAL ABSORBENTS SIGNS LETTER OF INTENT
TO ACQUIRE FIRST EMPIRE INTERNATIONAL LIMITED
FOR IMMEDIATE RELEASE:
BELLINGHAM, WA, April 21, 1997...International Absorbents Inc. (NASDAQ:IABSF), announced today that it has signed a letter of intent to acquire First Empire International Limited for fourteen million shares. Further details of the transaction were not disclosed.
First Empire is a holding company that owns 70 percent of Vusena Forest Corporation Limited. Vusena has extensive resources in Fiji including two lumber mills with substantial current assets and production grade hardwood timber concessions in excess of three million cubic meters. Additional concessions of more than nine million cubic meters of production grade timber have been pledged to Vusena and are pending Fijian government processing.
"Vusena represents a tremendous opportunity for International Absorbents shareholders," commented Gordon Ellis, Chairman of International Absorbents. "Market demand for hardwoods is very strong.Based on the market price of hardwoods and prices paid for similar timber concessions, we believe Vusena's resources represent a significant increase to our share value. Additionally, our wholly- owned subsidiary, Absorption Corp., will be using its technologies to develop beneficial uses for the substantial waste wood fiber present in Vusena's mills." International Absorbents is assessing the full value of the Vusena holdings and will disseminate further information as it becomes available.
International Absorbents Inc. is a holding company that through its
wholly-owned subsidiary, Absorption Corp., develops, manufactures and
markets patented and proprietary, cost-effective sorbent products derived from waste wood fiber. These environmentally safe products outperform conventional products used in a broad range of industrial and consumer applications, including oil and hazardous liquid spill cleanup and control, oil/water filtration, packaging and commercial/retail animal bedding and litter. In late 1996, the majority of the Company's operating management was replaced with several senior executives having extensive international sales and operations experience.
Further information about International Absorbents is available at
www.absorbent.com.
Contact:
Charles (Chuck) Tait Lisa Quinn
International Absorbents Inc. Rothschild & Banks, Inc.
(604) 681-6181 (908) 901-1111
This press release contains forward-looking statements with respect to the operations and business of the Company that involves risks and
uncertainties. These risks and uncertainties are detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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