SURREY, United Kingdom, July 18, 2005 (PRIMEZONE) -- Adal Group, Inc. (OTCBB:ADGR), a United Kingdom-based aluminum extrusion services company, today announced that effective June 29, 2005, Adal Group, Inc. ("Adal" or the "Company") entered into a Securities Purchase Agreement, with Laurus Master Fund LTD., pursuant to which the Company sold a Secured Convertible Term Note in the aggregate principal amount of one million five hundred thousand dollars ($1,500,000), which is convertible into shares of the Company's common stock. The fixed conversion price with respect to the first $1,000,000 principal amount of the Note shall be $3.00, and with respect to the remaining principal amount shall be $3.50.
The principal amount and any and all accrued and unpaid interest payable under the note shall be paid on or before June 29, 2008. The Company shall pay interest on the principal amount of the note at a rate per annum equal to the "prime rate" published in The Wall Street Journal, plus three percent, payable monthly.
The proceeds of the note will principally be used:
-- To fund major improvements to one of the extrusion presses at
our Witham plant, including materials handling systems; the
Company believes such improvements will increase overall
market share;
-- To launch new marketing initiatives at Adal Architectural to
take advantage of the booming London and UK property market,
and looking to the future, capture contracts for the recently
awarded 2012 London Olympics; and
-- To fund general corporate development.
According to Adal's Chairman and Chief Executive Officer Nick Shrager: "Our key objectives are always to improve our quality, to maintain fast on time delivery, whilst still selling at a competitive price. We anticipate that following these improvements, the Company should begin to experience immediate margin improvements."
About Adal Group, Inc.
Headquartered in the United Kingdom, Adal Group, Inc. is an aluminum technologies roll up, combining several well-established manufacturing businesses that provide complete one-stop, just-in-time aluminum extrusion services to U.K. and continental European customers. Adal is also developing several proprietary products with aluminum-based technologies for use in the energy, transport and construction sectors. Adal has a multi-faceted strategic plan to grow rapidly through acquisition (in the United States and Europe), new product introductions, expanded production capacity and increased productivity.
FORWARD-LOOKING STATEMENTS
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.