VISTA, Calif., March 20, 2015 /PRNewswire/ -- Eco Building
Products, Inc. (PINK: ECOB) today released the following letter to
its shareholders:
Dear Shareholders:
With the first quarter of the 2015 coming to close, amidst
preparations to support a busy spring run in the Building Industry,
I wanted to take some time to provide our loyal shareholders with
some perspective on the Company's current position, the goals and
expectations we are setting for the rest of 2015, and our strategic
plan for meeting those objectives. Now with the Company gaining the
national attention of Architects, Engineers, and Builders, our
primary focus-based goal has transitioned from direct sales and is
now set on perfecting the Company's coating operations so that we
can increase production volume in support of our growing customer
base, including our wholesale lumber customers as we have enabled
them to distribute Eco's Advanced Framing Lumber to their
customer lumberyards
Now moving into Phase 3 of the Company's business plan, let's
briefly recap where we've come from, and where the Company plans to
navigate moving forward. Since inception, the Company has had a
vision-based plan with the first two phases, as expected, being the
most difficult to realize success. In an effort to become the best
in the Lumber Industry at technically supporting our customers, the
Company is focusing on providing tailored and succinct direct
support to our larger customers via highly-engaged technical
support and customer service functions, of which has allowed for
our customers a smooth transition toward using Eco's Advanced
Framing Lumber. The Company's R&D Team is heavily involved
in new product development and innovation, and I'm pleased to
announce that we're now closer than ever before with Eco's next
advanced, defensive lumber product. We are confident that once
developed, tested and released to the market, the Industry will
embrace the newest Eco innovation as one of the biggest
developments the Industry has ever seen. Will there be lookalike
products and concepts? Yes! We welcome these product developments
because it is our position that all lumber needs to be protected if
the engineering values are going to support ground movement, fire
and high winds loads when they are called upon. Most important is
the fact that Eco's Technical Team has become well versed at
communicating with the Specifying Community due to the simple fact
that we come from within the Building Industry and we're poised to
make a difference, "Change is coming".
Phase 1 of Eco was capitalized by the creation of the Company's
former truss and framing operations that were designed with the
sole purpose of creating awareness and primary demand for Eco's
Advanced Framing Lumber. The fact that the Company was not
bound to receiving local code official approval for using the
product in framing applications, we built hundreds of houses and
multifamily projects with Eco Red
Shield without having to convince the supply chain to take
on something as new as coated lumber. We knew we were on the right
track when two gentlemen, of whom we believe to be the best
lumberman in all of North America,
told us they thought we were the best at marketing the Lumber
industry had ever seen. Our plan in Phase 1 was to get vertical
with the product and then use those verticals to create demand with
social media rather than trying to convince the Lumber industry
that was struggling to survive the recent housing collapse.
Phase 2 of Eco's plan was the establishment of the Company's
Affiliate Coater Network in key locations around the US. The
Company quickly came to realize that Eco's Affiliates would not
produce the same volume and intensity as demonstrated by Eco, but
at the very least this network would have the capability of raising
several red billboards, allowing Eco to leverage their position by
telling their success story via social media and marketing to the
masses. From this point in Phase 2, the company began to do
business with a select few regional lumber companies which resulted
in increased production requirements, and the opening of the
Company's Salem, Oregon and
Fair Lawn, New Jersey
manufacturing and distribution facilities. Upon the establishment
of these core facilities, Eco launched retail and special order
pilot programs respectfully, in association with the largest retail
lumber company in the world. Since first launching the initial
program over two years ago, the integral processes and functional
relationship with this organization has provided much needed
insight and mentorship in relation to tuning up Eco's core
operations and capabilities, to include technical and acceptable
language and pertinent communication to consumers and the market
required to support such an account with significant volumes.
Today, this relationship has grown from the initial 10 stores in
the Northeast, into over 130 retail locations now including the
Pacific Northwest, stocking 2 SKUs of Eco's Advanced Framing
Lumber in conjunction with a comprehensive special order
program. The Company is aware of the other Industry competitors
gunning for Eco and we're confident that our coating has perfected
the "Home Center Grade Lumber" via Eco's wraparound technology; it
is undebatable that this product is the most Advanced Framing
Lumber on the planet.
Phase 3 of the Company's business plan is underway and the
excitement level is high around Eco. With the Company having
completed Phase 1 & 2 of our business plan, we are now crossing
the bridge into Phase 3 because Phase 1 & 2 worked, and were
successful by design. Our motto since launching this plan is that
"It's a long season" and we are confident in the direction we're
taking as a Company, well aware of the opposition facing us by way
of some Pressure Treatment companies and organizations of the like
that are resistant or slow to change. Eco Building Products, Inc.
protected lumber products are not a pressure treated product; the
Company does not treat any lumber in cylinders or utilize excessive
water in the process because we are confident that our coating
methodology is safer for application to wood fiber, by design,
Eco's Advanced Framing Lumber provides whole-house
protection (e.g. from sill plate to sheathing and everything in
between). When it comes to delivering cost-effective and safer
solutions to residential homes, it is our opinion that we're
leading the world in this space. When it comes to teaching Builders
and Architects about our focused efforts, it's quite simple what
we're focused on accomplishing because the problems associated with
wet lumber and glues holding today's lumber together are making
wood-framed buildings more difficult to exit in fire because the
evolution of fire is so fast, and those that come from within the
Industry like us are listening. We believe the building codes are
in need of change when fire protection on multifamily buildings is
mainly required on exterior walls, but the interior lumber is
typically kiln dried which dramatically increases the fire load of
wood-framed structures. Case in point, watch this video:
http://www.huffingtonpost.com/2014/03/25/construction-worker-rescued_n_5031958.html.
With Phase 3 now underway in our core facilities, the following
key elements are integral to the success of the Company moving
forward:
- The Company is installing additional production equipment that
will enable increased output of Eco's Advanced Framing
Lumber in support of our wholesale customer that services
hundreds of lumberyard customers, and Eco's big box customer with
an increasing count of active stores in the programs in both the
Northeast and Pacific Northwest.
- Once this production expansion is complete (tentatively) by the
end of April 2015, the Company's
output of finished goods will double. By mid-Summer, additional
advanced production equipment will come on line at Eco's core
facilities, effectively streamlining the Company's operations in
support of coating services only.
- Further, Eco has made the decision to sell the Truss Company
along with moving out of the coating facility in Colton, California, in order to position core
coating operations closer to the production of lumber and wholesale
lumber positions in both the Pacific Northwest and the Company's
existing production operation in Fair
Lawn, New Jersey, with plans to have twice the production
output by the end of April 2015, as
the Company is focused on growing its finished goods output.
Eco's marketing and Media efforts have remained a key component
for creating demand and raising awareness for the product. Having
navigated a wide variety of marketing positions and vantage points,
the Company has keyed in on what strategies truly support the
direction being pursued. This past Friday (3.13.2015) Channel 12
News NY/NJ metro covered a story in relation to Eco in which
Architect Robert W. Adler spoke
about his business, and how he now builds with defensive lumber.
This morning (3.20.2015), a Company affiliate by the name of Frank
Dicopoulos appeared on CBS KDKA 2 Pittsburgh Today Live,
Philadelphia's number one morning
talk show. Frank hosted a portion of the show about Eco Building
Products, and it can be viewed by visiting:
http://pittsburgh.cbslocal.com/pittsburgh-today-live/. Look for
more media appearances as the Company continues to teach consumers
and the Building Industry how to build better buildings by
embracing a technology that only makes the lumber we grow in
North America better. We
understand better than most that such a dramatic change is
difficult to undertake just like it was after the Northridge
Earthquake when new hardware to support ground movement became the
norm, and we are equally aware that consumers are now engaged and
listening, especially when shows such as 60 Minutes air, where only
a few weeks ago they released a story about formaldehyde emissions
polluting the indoor air quality of homes as a byproduct of
specific building materials. Further, another 60 Minutes story
aired detailing the fact that published engineering reports on
houses destroyed after Super Storm Sandy could have been altered to
conclude that buildings which are truly unsafe, have been deemed
safe for occupancy. Our Company has made a comparison to these
stories in connection with the widespread use of wet lumber that
ends up behind the walls of all American homes. New building codes
are now being implemented across the US that requires 19% or lower
moisture content readings prior to drying a building in. It does
not take a rocket scientist to understand that lumber stored
outside all winter and exposed to the elements will be in excess of
19% moisture content, and to dry it out would take more time than
any builder has allocated during construction. The big question is
"Why was that code adopted given the current conditions of today's
wet framing lumber in widespread use?"
In closing, the Company is focused primarily on producing a
higher volume of finished goods while growing our wholesale
relationships. Throughout the course of 2015, the Company will
continue to stay focused on targeting Architects and Specifying
Community, along with maturing the plan with our Wholesale Lumber
relationship, starting in the Pacific Northwest with our Big Box
relationship. The Pacific Northwest territory is showing promising
signs that remind us of the growth experienced in the Northeast
because both regions deal with so much wet weather, a key element
that demands the use of Eco's Advanced Framing Lumber. Our
Technical teams have reached out to over 150 Architects with our
Specifier's Guide aimed at teaching Architects why wood fiber needs
to be protected from wet storage and termites, as well as fire
evolution, and why wood today ignites faster than the lumber
previously deployed. During all this forward movement and planning,
the Company has hired a team of financial professionals to help the
Company take a harder look at our business, and to provide insight
into our decision-making processes focused on ramping Phase 3 of
the business plan into full swing by this summer. This financial
restructuring process, already deep into action, has taken about 3
months, as we've broken down our entire financial business plan and
business model, highlighting what business channels are truly
profitable, and which channels are depleting our margins that no
longer support the Company's goals. The financial business model is
now our map for direction, and today as a company we have completed
the necessary cuts and revisions to operations, significantly
reducing our overhead as we are now at the point with two core
facilities producing more of Eco's Advanced Framing Lumber
than ever before. Lastly, the Company is now interviewing
candidates to expand its Board, and has a commitment to support the
necessary capital required to support the Company's go forward
plan.
Also, please note: The Company's ticker symbol has temporarily
changed to "ECOBD" due to recent corporate action to reverse split
the stock 1 for 20. This symbol will be in effect for 19 more
business days.
About Eco Building Products, Inc.
Eco Building
Products, Inc. is a manufacturer of treated wood products that are
protected against fire, mold/mycotoxins, fungus, rot-decay, wood
ingesting insects and termites by our proprietary eco-friendly
chemistry utilizing ECOB WoodSurfaceFilmTM and FRC™ technology
(Fire Retardant Coating) leading the world on Defensive Innovations
through the implementation of defensive building practices. Eco
Building Products' Global Defensive Vision is to foster
environmental stewardship, respect reforestation programs, and
consider the carbon footprint and recycling efforts as we forge
forward in the protection of homeowners and builders. We believe
that in conjunction with these endeavors, Eco Building Products
will have a positive impact on U.S. export business as supported by
factory-built housing managed by American Veterans, demonstrating
once again to America's youth that working in the Building Trades
is an honorable vocation.
Safe Harbor Statement: This press release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Act"). In
particular, when used in the preceding discussion, the words
"believes," "expects," "intends," "plans," "anticipates," or "may,"
and similar conditional expressions are intended to identify
forward-looking statements within the meaning of the Act, and are
subject to the safe harbor created by the Act. Any statements made
in this news release other than those of historical fact, about an
action, event or development, are forward-looking statements.
Forward looking statements involve known and unknown risks and
uncertainties, which may cause the Company's actual results in
future periods to be materially different from any future
performance that may be suggested in this release. ECOB takes no
obligation to update or correct forward-looking statements, and
also takes no obligation to update or correct information prepared
by third parties.
Company Contact
Eco Building Products, Inc.
Phone: 1 888 Red Shld (888.733.7453)
Email: info@ecob.net
Web Site: www.ecob.net
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SOURCE Eco Building Products, Inc.