News Release
Napier acquires control of Ecoprogess
Consolidated Ecoprogress Technology Inc CES
Shares issued 1,559,924 Jan 12 close $0.90
Tue 12 Jan 99 News Release
See Napier International Technologies (NIR) News Release
Mr. Bradley Aelicks reports
Napier International Technologies has acquired a controlling interest in
Consolidated Ecoprogress Technologies. The acquisition has been undertaken
through the purchase by private placement of 2,376,471 shares at an average
cost of 29.5 cents per share and 1,776,471 warrants exercisable at an
average price of 31 cents per share. In addition Napier has secured the
first right of refusal to participate in up to 80 per cent of any financing
requirements by Ecoprogress for the next two years.
As a result of the private placement, Napier owns 38 per cent of the
outstanding shares of Ecoprogress or 41 per cent on a fully diluted basis.
Napier nominees will hold two of five directorships on the board of
Ecoprogress.
Ecoprogress has acquired exclusive licencing rights in Canada and is
negotiating to acquire additional distribution rights for a technology
involving the manufacturing of a water soluble and biodegradable
plastic-like film known as B-9. The B-9 film is a composite material which
is impervious to water on one side like plastic yet it is completely
soluble and biodegradable when contacted by large volumes of water on the
other side.
These unique properties are a major technological breakthrough which can
solve some of the most concerning environmental problems of today.
Ecoprogress and its licensor have used the B-9 film to develop certain
products for the following broad target markets:
Disposable Absorbent Products
Diapers for infants;
Feminine hygiene products - Maxipads, panty-liners, et cetera;
Diaper shields and underpads for incontinence;
Wound care dressings;
Disposable garments used in hospitals and dental offices.
The technology can also be adapted through the use of certain resins which
lend themselves to injection moulding or thermo-forming processes to
produce bottles, containers, or trays that maintain their integrity in
contact with cold water but will completely dissolve if submerged in hot
water. The unique property of B-9 is used to advantage the following
sector:
Disposable Container Products
Containment pouches for urine and fecal matter by persons suffering
incontinence during surgery or by the disabled;
Pill bottles, syringes and similar container products;
Packaging for cosmetic preparation;
Replacement for virtually any plastic packaging.
Napier's management believes the market potential for such products is so
significant that it has taken an aggressive approach to securing
significant exposure for its shareholders to this innovative technology.
The first product which has hit the retail stores with remarkable
participation at the entry level is a broad line of feminine hygiene
products. Marketed under the brand name Simplicities, Ecoprogress has
developed the first fully flushable and biodegradable sanitary napkin. So
successful is the design of the product that in 1996 it was awarded the
highly acclaimed Environmental Choice Ecologo Certification for the
flushable and biodegradable sanitary napkin. In order to achieve this
status, the product underwent rigorous testing to ensure compliance with
licencing criteria.
This progressive solution for a global environmental challenge appears to
be capturing attention from the retail distribution chains. Ecoprogress has
recently achieved significant exposure in Western Canada with its
Simplicities brand and is pursuing arrangements with national and eastern
Canadian distribution outlets; the following outlets have already commenced
carrying the product:
British Columbia Alberta
Overwaitea Foods SAVE-ON-FOODS
SAVE-ON-FOODS IDA
IGA Value Drug Mart
Caper's Guardian Drugs
Cooper's Foods Apple Drugs
Quality Foods Community Drug Mart
IDA
Community Drug Mart
Value Drug Mart
This feminine hygiene market area represents $240-million from Canadian
consumers alone while the worldwide market has been estimated at $9-billion
on an annual basis. An even larger targeted sector is for the production of
a biodegradable diaper.
About 1.7 billion disposable diapers valued at $400-million are being
contributed to Canada's solid waste management system per year. Although
significant, this number pales in comparison to the 55 billion disposable
diapers sold yearly around the world.
Accordingly, Ecoprogress is currently testing a range of diapers in all
sizes that will disintegrate in processors in hospitals or can be removed
for biodegradation in composts or landfill sites for everyday use.
Other interesting potential markets include Canadian sales of adult
incontinence pads in 1992 reached $18.5-million, and the value of annual
sales of containment pouches in Canada exceeds $100-million.
Napier has also gained exposure for its own products through the marketing
talents of Mike Daniels, Brian Besco and Mike Donald, marketing
specialists, and management team of Ecoprogress. The fact that Ecoprogress
will remain an independently run and trading company will limit the
distraction for both groups so that they can continue with their main areas
of focus. Napier management will continue to vigorously pursue its entry
into the half-billion dollar coatings removal business where the company
has achieved such significant milestones through its environmentally
friendly coatings lifter technology. There has been no material change to
account for recent share price weakness from Napier's core business.
Napier's management firmly believes that by continuing to pursue
technological solutions to global environmental challenges, management can
build a diversified and leveraged opportunity for shareholders. |
