International Absorbents Secures Financing for Third Phase of Development
September 15 2006 - 6:31PM
PR Newswire (US)
FERNDALE, Wash., Sept. 15 /PRNewswire-FirstCall/ -- International
Absorbents Inc. (AMEX:IAX), a leading developer and producer of
environmentally-friendly pet care and industrial products, today
announced that its wholly-owned subsidiary, Absorption Corp., has
entered into a financing agreement with GE Capital Public Finance,
Inc. ("GECPF") whereby GECPF has agreed to fund and guarantee an
Economic Development Revenue Bond in the aggregate principal amount
of $1,600,000 issued by the Washington State Economic Finance
Authority on behalf of Absorption Corp. Absorption Corp. intends to
use the proceeds from the bond for the purchase and installation of
manufacturing equipment when it relocates its Bellingham,
Washington production facility to its new Ferndale, Washington
manufacturing and warehouse facility. The total cost of the move is
estimated to be approximately $3,600,000. The Company anticipates
that the remaining $2,000,000 will be financed through Absorption's
cash flow. The bond has a fixed interest rate of 5.70% and is
amortized over 90 months with interest-only payments during the
six-months of construction. Costs incurred in administrating the
loan proceeds are estimated to be approximately $65,000. The
Company is currently entering the final phase of its three-phase
capital expansion plan. The first phase of the plan involved the
completion in November 2003 of a new 105,000 square foot
production, warehousing and office space facility in Ferndale,
Washington. The second phase included the purchase in August, 2003
of 14 acres of land in Jesup, Georgia, which included a 41,000
square foot warehouse building and the construction of a 45,000
square foot addition for warehousing and manufacturing space on the
property. The third and final phase of the production expansion
plan is the relocation of the Company's Bellingham, Washington
production facility to its new Ferndale, Washington facility, which
the Company anticipates will be complete by March 2007. Gordon L.
Ellis, Chairman of International Absorbents Inc., stated, "Through
the issuance of an Economic Development Revenue Bond we were able
to negotiate a low interest rate in financing our equipment
purchases to complete the last phase of our infrastructure
expansion. To date, we believe our three-phase plan has given us
the ability to grow our business, achieve significant cost savings,
better serve our customers, expand our production lines, diversify
and expand our production capacity and physically move
manufacturing in a manner which is transparent to the users of our
products. We believe this final phase will continue to improve upon
efficiencies attained to date." International Absorbents Inc.
develops, manufactures and markets patented and proprietary, cost
effective consumer and commercial products derived from recycled,
renewable materials. These environmentally safe products outperform
conventional products used in a broad range of consumer and
industrial applications, including retail/commercial pet bedding
and litter, oil and hazardous liquid spill cleanup and control,
oil/water filtration, and packaging. Further information is
available at http://www.internationalabsorbents.com/ . Contact:
Charles (Chuck) Tait International Absorbents Inc. Toll Free:
866-514-6559 or 604-681-6181 A number of the matters and subject
areas discussed in this press release that are not historical or
current facts deal with potential future circumstances and
developments, including without limitation, statements referring to
the Company's future growth strategies, prospects for the future,
potential financial results, the Company's ability to control
expenses, market and product line growth, abilities to enter new
markets, ability to introduce new products, benefits from
infrastructure improvements and the Company's competitiveness and
profitability as a result of new sales and marketing programs, are
forward-looking statements. The words "believe," "expect,"
"intend," "estimate," "assume" and "anticipate," variations of such
words and similar expressions identify forward-looking statements,
but their absence does not mean that a statement is not
forward-looking. The discussion of such matters and subject areas
is qualified by the inherent risks and uncertainties surrounding
future expectations generally, and it is important to note that the
Company's actual results could differ materially from those
projected, due to various risk factors. Those risks include, but
are not limited to delays related to commissioning a new
manufacturing plant, contractor performance, newly installed
equipment performance, consumer acceptance of the Company's
products at a new location, competitor reactions and their ability
to market and price their products, general economic conditions
outside of the control of the Company, and the economic
availability of sources of raw materials to meet demand rates
necessary to sustain growth. Additional information concerning
factors that could cause actual results to differ materially from
those in the forward-looking statements is contained from time to
time in the Company's reports filed with the SEC, including, but
not limited to, the Company's annual report on Form 10-K for the
fiscal year ended January 31, 2006 and its quarterly filings on
Form 10-Q. This press release speaks only as of its date, and the
Company disclaims any duty to update the information herein.
DATASOURCE: International Absorbents Inc. CONTACT: Charles (Chuck)
Tait of International Absorbents Inc., 1-866-514-6559, or
+1-604-681-6181, or Web site:
http://www.internationalabsorbents.com/ Web site:
http://www.absorbent.com/
Copyright
International Absorbents (AMEX:IAX)
Historical Stock Chart
From Jun 2024 to Jul 2024
International Absorbents (AMEX:IAX)
Historical Stock Chart
From Jul 2023 to Jul 2024