Here is some news Greg. The company hopes to see revenues of $800,000 this year and $15,000,000 next year. If this turns out to be true... you'll probabaly wished you bought more. I bought a little recently but I'll wait to see if they show a profit this quarter and take it from there.
Friday October 17 2:19 PM EDT
Compositech in C$34 million Quebec venture MONTREAL, Oct 17 (Reuters)-
Compositech Ltd (CTEK) on Friday concluded an agreement on a C$34 million joint-venture with a Quebec investor group under which it plans to establish a plant in the Montreal area.
The plant will make copper-clad laminates for printed circuit boards using a patented process and equipment developed by Compositech, based in Hauppauge, New York.
The joint-venture partners are Societe generale de financement, a Quebec government agency, the Fonds de solidarite des travailleurs du Quebec (FTQ), which is a unionized employee fund, and two regional development funds -- Fonds regional de solidarite de l'ile de Montreal and Societe Innovatech du Grand Montreal. They will invest a total of C$15 million in the project.
In addition to owning 50 percent of the Montreal plant, the Quebec joint-venture partners agreed to buy US$5.4 million of Compositech common stock at US$5.09 a share, giving them a 12 percent stake in the company.
The investment will make the Quebec joint-venture partners the second-largest stakeholders in Compositech after management, the company's President Fred Kimpl told Reuters after a press conference.
Kimpl told the conference that the participation of the Quebec joint-venture partners, a C$4.6 million refundable loan provided by the Canadian federal and Quebec provincial governments, and other financing from National Bank of Canada (NA.TO) were key to the investment.
''What we have seen here is an innovative capital structure that enables us to come up here and build one to two years ahead of plans to have this additional capacity available,'' he said.
Montreal's workforce qualified in high-technology was also an asset, he said.
Kimpl told Reuters he expects the Montreal plant to come on stream at the end of 1998. Compositech is forecast to have revenues of about US$800,000 this year and US$15 million in 1998, he said.
''It's a very rapid ramp. We just converted into a production mode from a development mode in the last few months,'' he said.
Quebec Finance Minister Bernard Landry told Reuters that the Compositech project was one of ''hundreds'' of similar investment projects the Quebec government is examining.
He said the government was being careful not to unfairly subsidize investment projects in the French-speaking province.
''It is the duty of a responsible government to intervene, on the condition that it respects the basic rules of the economy,'' Landry said. |
