The Company has included SEMCO in its operating results since February 1, 2006.
Funding from the capital infusion was used to pay for the Pro Mold, Inc. and SEMCO Manufacturing, Inc. acquisitions. The purchases of both of these 100% wholly owned subsidiaries have been completed and the cash requirements have been paid.
SEMCO Acquisition
In January 2006, the Company acquired all the stock of SEMCO, a Nevada business that manufactures and sells concrete coating products.
The purchase terms are $650,000 in cash,$2,000,000 in performance payments (50% of Net Profits as defined) plus Plasticon restricted common stock worth $100,000.
Additionally, the Company will pay a royalty payment (4% of Net Profits as defined) for twenty years beginning after the $2,000,000 of performance payments are made. As the performance and royalty payments are made, the Company will increase goodwill to reflect additional purchase price. The agreement includes a five year employment agreement with a base salary and other benefits specified.
The January 2006 acquisition of SEMCO was accounted for as a purchase business combination under the provisions of the FASB’s SFAS No. 141, "Business Combinations" as of January 31, 2006.
The aggregate purchase price of $750,000 was allocated to the assets acquired and liabilities assumed based on the respective fair values. The values below are fair value estimates made by management. Management is still in the process of finalizing the allocation of the purchase price.
The Company has included SEMCO in its operating results since February 1, 2006.
FINANCIAL REPORTS
Report Type Period End Date Release Date
Issuer Information Statement 06/16/2006 Jun 24 2006 ET
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