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Raymor Acquires 100% of Advanced Materials Joint Venture and Announces Move to a Facility More Adaptable for Expansion

Published on 2006-09-08. Author : SpecialChem

MONTREAL, QUEBEC -- Raymor Industries Inc.(TSX VENTURE:RAR.V - News), a leading developer and producer of single-walled carbon nanotubes, nanomaterials and advanced materials, is proud to announce that the company has acquired the remaining 50% share of the Joint Venture which was announced in 2004, and is being managed by Raymor's wholly-owned subsidiary AP&C Advanced Powders and Coatings (AP&C). Following this acquisition, and with a 100% ownership of these operations, Raymor will move all its manufacturing activities to a new location in the Metropolitan Montreal area by the end of 2006. This new 77,000 ft2 facility will be more adaptable for the installation of all nanomaterials and advanced materials production lines, including their expansion; will cost 30% less to operate on a square-footage basis as compared to the current location; and will be better located to service Raymor's current and projected client base.

In November 2004, Raymor Industries entered into a Joint Venture agreement whereby under a wholly-owned subsidiary, AP&C, Raymor would commercialize all advanced material technologies including the metallic powders and thermal spray coatings businesses. The joint venture agreement included a clause whereby Raymor could buy out the partner's participation in the agreement. As a result of this new acquisition, Raymor takes full title of all the processing equipment, maintains all its exclusive intellectual property rights, and recuperates the shared profits previously in place under the joint venture agreement. This acquisition, which occurred more than two years ahead of the schedule laid out in the joint venture agreement, was concluded at conditions much more favourable to Raymor than were outlined in the original agreement. A portion of the funds raised in the April 2006 private placement was used to complete this transaction.

In order to save costs and to facilitate the expansion of all nanomaterials and advanced materials production lines, Raymor will move its main office and all of its manufacturing activities by the end of 2006 to a 77,000 ft2 facility located in Boisbriand, Quebec, a suburb of Montreal. This new facility will cost 30% less to operate on a square-footage basis as compared to the current location, and will be more strategically located to service Raymor's existing and projected client base. Raymor will minimize the impact of the move on daily operations by preparing the facility with new production equipment while continuing to operate in Montreal.

Commenting on the news, Stephane Robert, President and CEO of Raymor Industries, had the following to say:

"Having grown AP&C over the last 18 months, the acquisition of all the rights from the November 2004 joint venture agreement was a natural progression for the company. This acquisition will provide the quickest path to profitability for Raymor and the greatest value to our shareholders base. With Raymor's move into a much more appropriate facility, our company will be able to expand our operations more efficiently to meet market demands, particularly as it relates to the expansion of our single-walled carbon nanotubes manufacturing capabilities."

About Raymor Industries

RAYMOR INDUSTRIES INC. (TSX VENTURE:RAR.V - News) has as its mission to become a leading developer of high technology for the production of single-walled carbon nanotubes, nanomaterials and other advanced materials for high value-added applications. In November 2004, Raymor Industries created a wholly-owned, industrial subsidiary, AP&C Advanced Powders and Coatings, specializing in nanotechnology and advanced materials, and comprising four operational divisions: (1) nanotechnology products, including nano-powders, nano-coatings, and single-walled carbon nanotubes (C-SWNT) for "the applications of tomorrow"; (2) thermal spray coatings, which largely targets military, aeronautical, aerospace, specialized industrial, and mining applications; (3) spherical metallic powders, primarily used for biomedical and aerospace applications; and (4) net-shape forming, a component manufacturing technique used for ballistic protection and other aerospace and military applications. Raymor holds the exclusive rights to more than 20 patents throughout the world, with other patents pending.

Source: RAYMOR INDUSTRIES INC.


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