MASSENA, N.Y., Aug. 9, 2007 (PRIME NEWSWIRE) -- Michelex Corp. (Pink Sheets:MLXO) "Michelex" (or the "Company") a plastic manufacturing company with its offices in Utah, and an audio record production group would like to update its shareholders on significant news which may completely transform the company over the coming months and years.
Michelex has executed an acquisition and working capital term sheet for $15,000,000.00 with a New York based private lending/investment company. These funds will be used primarily to acquire Ag Pro, Ltd. and fund the working capital required to upgrade current daily operations at this facility. This term sheet is contingent on a due diligence review currently in process and definitive documentation for all parties. Michelex is confident the due diligence process will be completed quickly and, once approved, Michelex expects the acquisition of Ag Pro to close within fifteen business days thereafter.
Ag Pro, Ltd. ("Ag Pro") http://www.agprosoy.com/ owns a soybean and oilseed crushing plant in Massena, New York. The plant processes soybeans into soy meal and crude soy oil. Its current crushing capacity is 150 tons of soybeans per day, which can be increased to 250 tons shortly after the acquisition. The refinery has a capacity of 50 tons of oil per day. Ag Pro's oil refinery is a physical refinery, rather than a chemical refinery like most others. Chemical refineries use the solvent hexane. Hexane's toxicity to the human nervous system is well documented. Ag Pro's physical refinery produces oil that retains its health benefits because it does not use hexane in its process.
The Company is also excited to announce that Ag Pro, Ltd. has been in talks with a distributor that supplies several major fast food restaurant chains about supplying them with trans-fat free soybean oil. The first rounds of testing with the oil have been successful. With the new Trans Fat Ban, many restaurants, including popular fast-food chains have switched or are switching to zero trans-fat oil.
In addition to Ag Pro, Michelex is negotiating the purchase of two more soy bean crushing plants. The Company has come to terms with the same lending group which, upon successful due diligence and definitive documentation, will offer Michelex the funding to acquire these companies. Michelex will then have a working interest in three soy bean crushing plants to supply the Ag Pro Refinery. The two additional soybean crushing plants to be acquired together with Ag Pro, have combined revenue of over 25 million dollars and are profitable. Michelex anticipates the closing on these two additional soybean crushing facilities within 45 days of the Ag Pro acquisition. Together, all of the companies presently being considered for acquisition should have revenue capacity of approximately $65 million and could form a sustainable and profitable nucleus for Michelex.
Thomas Gramuglia, President and CEO stated, "We feel the deals signed present significant value to shareholders, as we were able to secure lending that did not require convertible debt. We feel this is beneficial for both Michelex and shareholders both short-term and in the long run."
Michelex stands to capitalize on this hot sector by becoming a leading supplier of zero trans-fat soy oil to the marketplace.
The Company also has a proposal for non-dilutive financing that would give its plastics division additional working capital tied to inventory.
Michelex Corp. appreciates the shareholders' patience. The Company has been working very hard to create value for shareholders with acquisitions that make economic sense and minimize dilution.
About Michelex
Michelex Plastics, founded in 1972, is a manufacturer/importer and distributor of C-Zero's, Cshells, Norelco Boxes, Jewel Boxes, DVD Boxes and other related specialty plastic products. The company has manufacturing facilities and distribution points in New York and Salt Lake City. The company employs people who are committed to the customers and to the operations of the business. Michelex offers a full range of products through its divisions to make it a one-stop shop for its customers.
Michele Audio -- Audio duplication services and an exclusive rights holder of a large catalog of music and spoken word recordings.
Michelex Media Products -- Producer, supplier and distributor of paper multimedia packaging products, also offering complete fulfillment services to its customers.
Safe Harbor:
This release may contain forward-looking statements within the meaning of the Private Securities Litigation reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of the Company's business include but are not limited to fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company's SEC reports.