WAMC is poised to dominate the US$16 billion North American paint and specialty coatings market; WAMC is a newly-listed, profitable business and operating company trading at a P/E multiple of less than 2 (compared to P/E's of 20 for peer companies)
CORPORATE BACKGROUND
Weather All Manufacturing USA Inc. ("WAMC" on the OTC BB) manufacturers and distributes a new generation of proprietary, environmentally-friendly elastomeric coatings ("paints"), sealers, binders, cleaners and degreasers. With its revolutionary new formulations of water-based elastomeric coatings, WAMC offers a totally-effective, long-lasting and environmentally-safe solution. The company's unique formulations are safer, easier and more cost-effective to manufacture using modern mixing technology.
In one step, WAMC products provide maximum protection from, with maximum protection for the environment.
The company's headquarters and manufacturing facility is located in Port Moody, British Columbia, Canada. Modern port facilities and proximity to the U.S. Interstate highway systems enable WAMC to cost-effectively ship its products to domestic and international markets. At present, WAMC is aggressively marketing its products in the Washington, Oregon and California markets.
The North American paint and coatings industry accounts for over US$16 billion in sales annually and is currently undergoing major structural changes brought on by increasingly-stringent environmental regulations. WAMC produces coatings products that confirm with, and exceed these new regulations.
WAMC is poised to dominate the large specialty coatings market. Using revolutionary new formulations of water-based coatings, sealants and other products, WAMC offers an effective, long-lasting environmentally-safe solutions to a wide range of construction and restoration market requirements. The principle advantage of the WAMC product line is in the inherent resiliency to long-term exposure of harsh climatic conditions and the resulting cost savings to the consumer.
WAMC is currently negotiating a US$1 to US$3 million financing which will be allocated for the upgrade of present plant facilities and further expansion of the marketing of its products, including sales, licensing and distribution agreements for the United States and Canada that will be made available over the company's new e-commerce site (the Internet sales component will be functional by the spring of 1999).
SHARE STRUCTURE & TRADING PRICES
Shares Issued: 4,807,000 Fully-Diluted: 8,807,000
52-week high: US$0.61 52-week low: US$0.19
Current bid/ask: US$0.32 / US$0.62 Last Trade: US$0.35
Included in the 8.8 million fully-diluted shares are four million pre-paid performance shares, escrowed and subject to release on the basis of one share per US$1 in pre-tax profit earned. Glenn Collick , WAMC's President, owns over 65% of the issued and outstanding shares of WAMC.
MANAGEMENT
WAMC's management team is comprised of qualified, highly-motivated individuals.
The management team has numerous affiliates and strong industry
associations which will provide WAMC with the expertise and dedication to move the industry into the new millenium as a major force in the specialty coatings market worldwide. In particular, WAMC's management has strong experience in the concrete and building maintenance chemical markets.
The company has designed in-house formulations and manufacturing facilities to use just-in-time techniques. In just three hours, WAMC can produce and package 100 to 300 gallons of product; the unique chemistry of the company's products allows for one-day, made to order production cycles, yielding exceptional inventory turn-over and greatly reducing capital and spatial requirements for finished goods.
MARKET OVERVIEW
According to the U.S. Department of Commerce, sales of paints and coatings in North America in 1996 were US$16.4 billion. Of this amount, architectural coatings - the product that everyone knows as "paints" - accounted for about 38% of the industry's annual sales or roughly US$6.2 billion.
The U.S. Environmental Protection Administration (EPA) has enacted
legislation requiring the total elimination of Volatile Organic Compound (VOC) emissions - a common ingredient in most paint and coating products - by January 1, 2003. Canada and other countries are following this lead.
Using proprietary formulations, WAMC has developed a new generation of elastomeric coatings and environmentally-safe products to provide consumers with the most protection from the environment with the most protection for the environment. WAMC's water-based formulations meet and exceed EPA specifications, in addition to offering consumers a 15-year life expectancy.
Key to the durability of WAMC's products is the proprietary nature of the elastomeric coatings, which form a secure waterproof sheet that will stretch and flex. These superior characteristics have been tested and verified by such reputable independent testing labs such as Warnock Hersey, as well as having been successfully applied to a wide range of residential and commercial buildings throughout the Pacific Northwest.
MARKETING STRATEGY & COMPETITIVE ADVANTAGES
WAMC's initial market strategy is to penetrate the distribution chain to the home handy man market through outlets like Home Depot and Eagle Hardware. Agreements with national retail organizations like these will allow WAMC to rapidly expand its markets at minimal costs and establish a stable sales base from which to fund development of additional environmental-friendly products.
Given the water-based nature of WAMC's products, the fact that no special application tools or complex chemical procedures are necessary, combined with a 15-year life expectancy of its products, the major paint and sealant distributors are eager to try WAMC's products, and will be doing so in the spring of 1999.
COMPARISON WITH NAPIER INTERNATIONAL TECHNOLOGIES
There are a number of interesting comparisons that can be made between WAMC and Napier International Technologies, an international chemical stripping and refurbishment company. Earlier this year, shares of Napier ran from Cdn$0.12 to Cdn$4.88 on the Toronto Stock Exchange.
The environmental regulatory climate is one that is driving the success of both companies. Both utilize water-based formulations to conform with stringent new environmental regulations. However, the most important factor when comparing Napier and WAMC is the available markets for their respective products.
The global market for Napier's product is on the order of US$500 million; Napier has a specific product for a specific niche. WAMC, on the other hand, has various product lines that have a much larger market place to capitalize on - over US$16 billion just in North America.
Another significant difference in the companies is in regards to structure and the amount of "paper out there". WAMC has 4.8 million shares in the active float as opposed to 22 million for Napier. Napier has a market cap of approximately US$50 million, whereas WAMC's market cap is just US$1.5 million.
Napier's market cap and share price levels are attributable to the growth potential of their products, a rapid growth in sales, and investor excitement about the company following completion of an aggressive PR campaign.
WAMC is a new company - just beginning its first full year of production and sales. Very few investors know about the company, and the WAMC story is only just now coming to the attention of major market players, analysts and newsletter writers.
OPPORTUNITY FOR INVESTORS
Weather All Manufacturing has all of the ingredients for success: excellent technical management, an extensive product line currently being sold internationally on a profitable basis, strong financial backing, and solid growth prospects. We expect WAMC to do very well in the future.
From a technical standpoint, we believe that WAMC has turned the corner, breaking out of its recent trading range of US$0.20 to US$0.30. We see solid investor support at current levels. Currently the company is trading at about US$0.35 cents per share.
With increased market and investor awareness, it seems reasonable to expect that WAMC's shares will be valued at higher P/E multiples than is presently the case (15 to 20 versus the current 1 to 2).
For more information, please contact:
Toll-Free: (877) 233 - 3131
Investor Relations
DISCLAIMER
This is not an offer to sell any securities of Weather All Manufacturing USA Inc. ("Weather All Manufacturing"). The securities may only be offered by registered broker-dealers which may have agreed to market Weather All Manufacturing's securities. Gold Ridge Investment Corp. ("Gold Ridge") is not such a registered broker-dealer.
The information contained herein has been provided by Weather All
Manufacturing to Gold Ridge for information purposes only and should not be construed as, and shall not form part of an offer or solicitation to buy or sell any securities nor should it be construed as investment advise. In addition, the information contained in this report is not intended to be a complete discussion of information regarding some of the current and/or intended business activities. The information contained herein has been compiled or derived from sources believed reliable and contains information and opinions which are believed to be accurate and complete. However, Gold Ridge makes no
representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use or reliance upon this report or its contents.
Gold Ridge has received 80,000 common shares (FREE-TRADING) from Weather All Manufacturing as consideration for the preparation and advertisement of this report, and, prior to Gold Ridge disseminating this information, Weather All Manufacturing has reviewed and approved the contents hereof. |
