Envirokare Announces Completion of $4,815,000 Financing
Wednesday October 11, 12:21 pm ET
NEW YORK--(BUSINESS WIRE)--ENVIROKARE TECH, INC. (OTCBB:ENVK - News), announced today the completion of a private placement sale of its securities. Envirokare, through its joint venture interest in LRM, is developing state-of-the-art TPF ThermoPlastic Flowforming(TM) technology, which produces proprietary long-fiber reinforced and unreinforced thermoplastic products.
On October 2, 2006 the Company closed its private placement of 7,642,856 Units at a price of $0.63 per Unit. Each Unit is comprised of one (1) share of its common stock and one share purchase warrant, each warrant entitling the holder to purchase one (1) additional common share of the Company with an exercise price of $0.63 and an exercise period of three (3) years to commence one (1) year after the closing of the private placement. The total amount of cash received by the Company from this private placement was $4,815,000 and there were no underwriting discounts or commissions. The private placement was made only to accredited investors pursuant to the provisions of Rule 506 of the Securities Act of 1933, as amended.
The Company's current expectations as to the use of the proceeds from this offering are to make additional contributions to the Company's joint venture interest, LRM, to retire debt and for general administrative and operating purposes.
About the TPF ThermoPlastic Flowforming(TM) Process and Technology:
The TPF ThermoPlastic Flowforming(TM) process utilizes a broad range of thermoplastic and thermoset polymers and reinforcing fibers. This process enables the production of large, complex parts at low cost, through the utilization of low-pressure presses and inexpensive molds. Management believes that LRM customers will experience the benefits of utilizing the TPF ThermoPlastic Flowforming(TM) process and technology when compared to existing production methodologies, such benefits including improved production efficiencies, enhanced product quality and production cost savings.
LRM Industries, LLC was formed to commercialize TPF ThermoPlastic Flowforming(TM) technology through development, manufacturing and licensing. LRM is a joint venture of NOVA Chemicals, Inc. and Envirokare Composite Corporation (a unit of Envirokare Tech, Inc.).
TPF ThermoPlastic Flowforming(TM) is an emerging process technology for the low pressure, fully-automated molding of long-fiber-reinforced ("LFRT") and unreinforced thermoplastic large structural parts providing enhanced mechanical properties through, in the case of LFRT, the randomization and preservation of fiber length in molded parts. LFRT and unreinforced molded products represent two of the fastest growing segments of the worldwide molded plastics market with applications replacing conventional materials such as steel, aluminum, wood, fiberglass and cement, in nearly all major industrial markets. The worldwide market for LFRT and unreinforced products is estimated to be a multi-billion pound opportunity with double-digit growth rates currently and into the future. The enhanced mechanical properties of TPF ThermoPlastic Flowforming(TM) molded products, coupled with low material costs (including the use of recycled polymers) and low conversion costs, make TPF ThermoPlastic Flowforming(TM) patented technology a strong contender for this multi-billion pound opportunity. |
