BLGA
BlastGard® International Enters Into an Option Agreement to Acquire Innovative Composites Incorporated
CLEARWATER FL, August 30, 2007 - BlastGard International, Inc. (OTCBB: BLGA), the creator of blast-mitigation products and services, is pleased to announce that we have entered into an option agreement to purchase 100% of Innovative Composites, Incorporated (Innovative), a Michigan based development stage corporation doing business in the composites industry and engaged in the design, engineering and manufacturing of continuous fiber reinforced thermoplastics, utilizing patented technologies. Upon the completion of our due diligence and subject to Board approval, in the event we elect to exercise our option to purchase Innovative on or before October 31, 2007, we would issue an aggregate of 7,530,000 shares of our restricted common stock, subject to a 50% holdback and escrow, with a 100% release of escrowed stock to Innovative shareholders and advisors based upon Innovative receiving firm contract awards of $2,000,000 by April 30, 2008 and an additional $3,000,000 by April 30, 2009. The option agreement contemplates that we will provide loans of up to $140,000 on an unsecured basis to Innovative. We can provide no assurances that we will complete the acquisition of Innovative on the terms outlined above, if at all.
Jack Waddell, President of BlastGard stated, "We are really enthused about bringing these two companies together. Together they create far greater opportunities to penetrate the targeted military and homeland security market sectors. In addition, combining our respective materials and technologies should generate some exciting and efficient new blast mitigating and ballistic products. Innovative is a perfect fit, with a strong management team with extensive experience in new composites product development and efficient production. Starting only in mid 2006, Innovative already has four letters of intent from different customers to purchase meaningful volumes of Innovative product, starting with September production."
"I am proud to report that Innovative Composites' team is joining BlastGard International," said Terry Ball, President of Innovative. "Innovative's composite engineering and manufacturing expertise compliments the exciting technologies of Blastgard International. The combination of BlastGard's blast mitigation technologies and our proprietary technologies producing continuous fiber reinforced ballistic and shrapnel management systems will provide exciting opportunities in the homeland security and military markets. The synergies created through this strategic acquisition will accelerate our progress in engineering unique product solutions for the marine, fitness and construction market. Our combined sales, marketing and engineering teams will demonstrate the advantages of BlastGard's expanded technologies to deliver the state of the industry security solutions and systems for the military, defense and homeland security customers."
About BlastGard International, Inc.
BlastGard International, Inc. was created to design, develop, manufacture and market proprietary blast mitigation materials. The Company's patent-pending BlastWrap™ technology effectively mitigates blast effects and suppresses post-blast fires. This unique technology can be used to create new, finished products or to retrofit to existing products. While the need for this technology has always been present, the security and safety concerns resulting from the September 11, 2001 acts and the subsequent development of Homeland Security make the timing of the Company's emergence even more important. The Company's core market focus is on blast effects mitigation for the commercial sector, military, law enforcement and government agencies. BlastWrap™ is based upon well-defined principles and suppresses blast pressures by 50% or more. BlastWrap™ products are made from two flexible films arranged one over the other and joined by a plurality of seams filled with attenuating filler material (volcanic glass bead or other suitable two-phase materials), configurable (designed for each application) with an extinguishing coating that offers a revolutionary blast protection system against Blast & Fire/burn threats. BlastWrap™ is a blast mitigation assembly that can be wrapped around or conform to any shape. BlastWrap™ is a concept (not a chemical compound) from which blast protection products are built to save lives and reduce damage to valuable assets from explosions. Additional information on BlastGard can be found at www.blastgardintl.com. |
