HOUSTON, May 11, 2005 (PRIMEZONE) -- RedwoodChemical.com is pleased to announce additional information on the DGW Financial (Pink Sheets:DGFJ) merger and the companies corporate expansion plans. The on-line pest extermination products sales and marketing company (www.redwoodchemical.com) has developed a three-pronged growth program to build assets, expand sales potential, increase revenues and enhance profitability.
Richard Markle, CEO of RedwoodChemical.com, stated, "The goal of the our merger with DGW Financial Ltd. is to increase our access to capital markets so that we can accelerate the corporate growth plan developed over the last three years."
Redwood plans to acquire pest control product chemical mixing and blending businesses. Many smaller, mostly family owned mixing companies can benefit from consolidation, a success trend currently occurring in the pest control chemicals industry. Redwood has initiated negotiations and offered Letters Of Intent to acquire two companies. One is based in East Texas and one is based in Southern Louisiana. The buildings, equipment and inventory from these acquisitions would significantly increase the corporate asset base and revenues. Profit margins would also be increased by lowering pest control product costs.
Corporate expansion plan includes increasing profits by establishing a line of RedwoodChemical.com Private Label branded products. Mixing company acquisitions represent a significant step towards achieving this goal. The on-line sales web site has been operational for the three years, providing a comprehensive, nationwide knowledge of customer's pest extermination needs and the top products in demand. This information will be utilized to cost effectively introduce selected Private Label products.
Redwood also plans to take advantage of the nationwide boom in new home building and sales of previously owned homes by enacting an aggressive e-commerce sales program designed to sell products nationwide, promote stores and present the Redwood stock investment opportunity. The company plans to open retail stores in targeted cities. The Texas cities of Houston, Dallas, Austin and San Antonio have been investigated.
New retail stores are being planned in South Florida, Louisiana and Las Vegas, Nevada. Annual sales per store are projected to be at least $600,000. In addition, on-line pest control sales companies with regional retail stores will also be targeted for acquisition. Pest control industry reports show a strong consolidation and merger trend that Redwood can capitalize on as a publicly traded company.
About RedwoodChemical.com
Structured to succeed in today's economy, RedwoodChemical.com represents a unique growth company that has been spun out from a Houston, Texas based specialty chemical products formulator and distributor established in 1948. For additional information please visit www.redwoodchemical.com/redwood-profiles.htm. Customers can save money on stronger, professional strength products that offer longer lasting, residual power for killing ants, roaches, fleas, termites and other pests. For a complete overview of pest control products available visit www.redwoodchemical.com/pest-supplies.htm.
Safe Harbor Forward-Looking Statements
Statements contained in this release that are not strictly historical are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are made based on information available as of the date hereof, and the company assumes no obligation to update such forward-looking statements. Editors and investors are cautioned that such forward-looking statements invoke risk and uncertainties and the company's actual results may differ from these forward-looking statements. Such risks and uncertainties include but are not limited to demand for the company's products and services, our ability to continue to develop markets, general economic conditions, our ability to secure additional financing for the company and other factors that may be more fully described in reports to shareholders and periodic filings with the Securities and Exchange Commission.