To: Jeffrey L. Henken who wrote (1082 ) 3/23/1999 3:34:00 PM From: Wiselight Read Replies (1) | Respond to of 2662
Jeff, It really only trades in Vancouver because we don't have a market maker at the present. The market is CDN $0.80/0.83 as I am talking to you. SHRINKGUARD the first antimicrobial product to be introduced by RAYTEC will be launched at the Chicago Food Marketing Institute in early May. The margins from SHRINKGUARD are excellent. The ratio is 0.23/1.50 approximately and the stores will realize payback on the product in 6 weeks. Following the launch of SHRINKGUARD several other applications for Raytec's Dry Media Chlorine Dioxide technology will be introduced. ---------------------------------------------- March 17, 1999 Trading Symbol: RCC.V www.raytec-capital.com NEWS RELEASE SHRINK TESTS CONFIRM SAVINGS TO GROCERS - SHRINKGUARD TO BE LAUNCHED Raytec Capital Corp. is pleased to report that its first dry media chlorine dioxide product achieved excellent results from an on-site test study conducted by independent auditor, Food Products Laboratory, Inc., of Oregon. These findings represent a significant market opportunity. The SHRINKGUARDtm display case matting, for use underneath perishable products, utilizes dry media chlorine dioxide technology. The matting, designed to reduce product shrink, to enhance product quality and to kill food borne pathogens was tested in three independent grocery stores. Testing of approximately 115 different product items demonstrated that an average of 40% reduction on overall product loss (shrink) was achieved with the Company's matting. Of the multiple produce items tested, bananas, alfalfa sprouts, pearl onions, red delicious and red organic apples, honeydew melons, iceberg lettuce and cauliflower experienced almost zero to no shrink loss with the matting. At the three test sites for example, approximately 455 pounds of large tomatoes are lost to decay and spoilage each week. With Raytec's matting only 265 pounds were thrown away during the test period, resulting in a shrink reduction of 41%. Most grocery stores utilize the largest amount of floor space in the produce department, representing 30% of all products sold within the store. In addition, the produce department yields the highest profit percentage to the grocery store merchant. Additional value is realized by improving the esthetics associated with decayed or spoiled produce in the display cases. ShrinkGUARDTM has proven effective in the income potential on a wide variety of produce. In a market where net profit margins have historically been low, retailers are now demanding greater return on investments. Reduction of shrink by 40% significantly increases store profits as illustrated below: Potential Value For A Typical Grocery Store Typical produce shrink loss $ 1,200 / week Average shrink loss with matting $ 720 / week Saving associated with matting $ 480 / week Value to typical grocery store $ 24,960 / year Grocery stores in North America with sales in excess of $2 million per year = 33,608 ANNUAL POTENTIAL SAVINGS = $ 837 MILLION / year Raytec will offer the SHRINKGUARD matting at an exceptional price that will offer grocery stores a significant return on investment. Thus the market potential for SHRINKGUARD conservatively equates to $300-$400 million annually for produce alone. Raytec will also market the matting for seafood, meat and deli display cases. The patent pending product was developed together with Raytec's alliance partner Engelhard Corporation (EC/NYSE). The official product launch will take place in Chicago at the Food Marketing Institute (FMI)Trade Show, May 2-4, 1999, the Western Hemisphere's largest annual supermarket exposition. Prior to the development of dry media technology, chlorine dioxide has not been cost effective for small volume applications such as those, which could be used in a retail grocery store. Dry media eliminates the need for mechanical generators, mixing equipment and greatly reduces shipping and storage costs thereby expanding opportunities for the use of chlorine dioxide. For the retailer grocer dry media applications, like the SHRINKGUARD display case matting means savings. RAYTEC CAPITAL CORP. Per: Jerry A. Minni President/Director