Here is the CES version of the news release, we should see some good activity as hopefully trading resumes today.
Consolidated Ecoprogress Technology Inc.
NEWS RELEASE
(CES:VSE)
April 6, 1999
Acquisition from BioProgress Technology International, Inc.
Consolidated Ecoprogress Technology Inc. ("Ecoprogress") is pleased to
announce the acquisition from BioProgress Technology International, Inc. the
assets of Trutona International Inc., the rights to B-9 film technology for all
products except encapsulation. Ecoprogress currently markets SimplicitiesTM , the
world's only flushable and biodegradable feminine napkins and liners made using
the patented B-9 technology, in Canada. Prior to this agreement, Ecoprogress held
Canadian rights for B-9 film applications including absorbent products, fabrics and
other commercial and industrial applications.
The expansion of Ecoprogress' license, to encompass the rest of the world, creates
an increase in market size for the Company's SimplicitiesTM branded product
from a $250 million feminine hygiene market in Canada to $7 billion worldwide. It
also greatly enhances the potential to earn revenue now and in the long term with
the Company's existing products and those under development.
Ecoprogress combines B-9 film patented technology along with public domain
biocompatible materials such as polyvinyl alcohol ("PVA"), a water-soluble and
100% biodegradable compound, to replace a wide range of products currently
produced with polyethylene, a non-biodegradable plastic. These products include
feminine hygiene napkins and liners, disposable diapers, diaper liners, incontinence
pads and breast pads. B-9 film can also be spun into a biodegradable hot water
soluble fabric for use in hospital gowns, dressings, disposable bedding and surgical
masks. In addition, there are a number of other applications under consideration,
including B-9 for solid container use.
The Trutona assets acquired include the existing UK and European sales force and
the trade marks, feminine hygiene finished goods inventories, packaging, raw
materials and art work for "True to NatureTM " and "TrutonaTM " in the United
States and "HarmoniesTM " in Europe.
To date, Ecoprogress has proven effective at expanding sales with relatively limited
resources. In western Canada, Ecoprogress has been successful in winning key
product listings for SimplicitiesTM with Save on Foods, Overwaitea Food Stores
and London Drugs among a growing number of noteworthy drug and grocery chain
outlets. HarmoniesTM has been established on the retail shelves of some 13,000
stores in Europe.
The acquisition of the Trutona assets, added to Ecoprogress' solid business
foundation, creates an opportunity for expansive and potential rapid growth. "This
agreement substantially increases our revenue potential," said Ecoprogress CEO
Michael Daniels. "By bringing the world rights to the table, we are now positioned
to fund expansion into the newly acquired markets, and to service international
markets that have already indicated interest in the current line of flushable and
biodegradable feminine hygiene products."
Daniels adds "Ecoprogress currently has a biodegradable diaper and incontinence
pad in the final stages of research and development. Both products address the
consumer's need for convenience and the growing problem that regular disposable
diapers and pads cause in land fills. With the expanded worlwide rights, we intend
to step up the pace of development on both products," The Company is also
aiming to enter the $45billion disposable diaper market with a commercial launch of
the 100% biodegradable diapers prior to the end of the fourth quarter of 1999,
followed by incontinence pads.
Barry Muncaster, President of BioProgress (BPRG:OTCBB), said, "This
agreement announced today provides BioProgress with an immediate and
continuing income stream that underwrites the implementation of our business plan.
We could not wish for a better partner than Ecoprogress to commercialize our
flushable and biodegradable product lines. Not only does Ecoprogress have access
to first-class distribution across Canada, but its management team has the skills and
resources to roll out products to the US market and beyond,"
The payment for the worldwide license acquisition comprises a combination of cash
US$380,000, 1,066,667 common shares of Ecoprogress at an agreed price of
US$1.05 per share, and royalties of 5% on gross sales with a lifetime maximum
payment of US$3.5 million. The acquisition is subject to regulatory approval being
obtained by Ecoprogress.
The unique B-9 technology offers substantial benefits, both ecological and in terms
of consumer convenience. For example, the Company's feminine napkins and
liners, the first commercially available products based on B-9 film, offer consumers
the only product of their kind in the world providing the convenience of 100%
flushability while being totally biodegradable and non-toxic to the environment.
Michael Daniels
President, CEO
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