VLVT - This is a source post for the LISTs, #reply-10998836
Veltex Corporation Signs Letter of Intent for Acquisition of Noba Textile Ltd.
LOS ANGELES, Aug. 18 /PRNewswire/ -- VELTEX CORPORATION (OTC Bulletin Board: VLVT - news) announced today that it has signed a letter of intent to acquire Noba Textile Ltd., a well-established textile mill near its existing facility in Bangladesh. Noba Textile Ltd. reported 1998 revenues in excess of $5,000,000 and earnings of nearly $1,000,000. VELTEX proposes to acquire the company with a combination of cash and restricted stock. The transaction is expected to be completed in the next 30 days.
Currently VELTEX has 5,470,330 shares of common stock outstanding. The float is estimated at 1.9 million shares. VELTEX' net income for the first half of fiscal year 1999 was $570,317, or $0.10 per share compared to $282,214, or $0.05 per share, a year ago. Gross revenue for the first six months of fiscal year 1999 totaled $2,773,791, an increase of $1,080,045 or 64% from $1,693,746 over the comparable period of last year.
VELTEX CORPORATION President and Chairman, Javeed A. Matin, indicated he was optimistic about completing the transaction. ''Upon successfully completing the acquisition of Noba Textile Ltd., we will immediately increase our production capabilities by a multiple of three or more. Such increased capacity should have a profound effect on our revenues and our bottom line results as well.''
Matin also acknowledged that he still seeks to purchase additional production equipment to further increase his existing plant's capacity. ''At least one additional acquisition candidate, located in the U.S., and not in VELTEX' traditional textile business, is being considered,'' said Matin.
VELTEX CORPORATION is a manufacturer and distributor of high-quality, specialty textiles primarily for use by manufacturers of furniture, automobile interiors, and ready-to-wear garments. Its manufacturing facilities, managed by a former U.S. textile industry executive with more than 30 years experience, are strategically located in Comilla, Bangladesh employing 315 people. This location permits quota-free importing to USA markets thereby affording significantly higher profit margin potential than its competitors in India and Pakistan. Company sales and distribution centers are located in the prestigious California Mart in Los Angeles as well as in Canada, Europe, Asia and Bangladesh.
Reader's Caution: Statements contained in this press release are based on information provided by the company and are believed to be reliable. The statements are not to be construed as investment advice. The Publisher as to the financial condition, business, or other factors of the company. This release may contain forward-looking statements within the meaning of the private securities litigation reform act of 1995, such as expectations regarding the planned dates for commencement of proposed projects and the scope of those projects. Such forward-looking statements are inherently uncertain, and the actual results may differ from management's expectations. These uncertainties may include, without limitation, continued acceptance of the company's products and services, increased levels of competition, competitive new products and technological changes, and the company's dependence upon financing, third-party suppliers, and intellectual property rights. Further information on potential factors which could affect the financial condition and results of operations of the company may be detailed from time to time in the company's federal filings, annual report, offering memorandum, or prospectus.
SOURCE: Veltex Corporation
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