TORONTO, ONTARIO -- (Marketwire) -- 12/24/12 -- Innovative Composites International Inc. ("ICI" or the "Company"), (TSX VENTURE: IC)(OTCQX: ICIZF), a producer of proprietary engineered composite products, is pleased to provide a business update with respect to certain previous announcements and current initiatives.
-- The production of our specifically engineered enclosures announced on September 5, 2012, and updated on November 7, 2012, is continuing and the Company has started to receive a recurring flow of purchase orders on a monthly basis.-- The Company has been awarded several modest contracts to supply "load floors" in the automotive sector and has started receiving purchase orders with respect to these contracts. In addition, the Company has been receiving a steady flow of purchase orders from an existing customer for Mattex, a proprietary fiberglass matt material that is used in roof liner applications in the automotive sector, and has recently received a purchase order for a new customer for Mattex. These contracts for load floors and roof liners are evidence that ICI's proprietary thermoplastic RMor Skin and Mattex products are gaining acceptance in the automotive sector.-- The Company has hired a new Vice President, Business Development, who will be responsible for the sales and marketing function for all of ICI's market segments, including the fire retardant assets.-- The Company has signed a distribution agreement for its RapTER shelters and containers with a distributor focussed on emergency relief agencies on the U.S. east coast and is continuing to explore opportunities to market the RapTERs to emergency relief agencies in North America and internationally.
"ICI is continuing with the implementation of a multi-pronged strategy to extinguish the operating burn rate and become cash-flow positive during this fiscal year," said Terry Ball, President and CEO of ICI. "We are focussing on business segments with a shorter sales cycle, such as industrial applications and shelters and containers, and we view fire retardants as another high-potential business segment. In addition, we remain in pursuit of longer sales cycle housing opportunities, both internationally, and in North America, and we are at various stages of business development in this area on a number of projects. We are very pleased to have added Jim Loran as our new Vice President, Business Development. Jim has a long record of success in sales and marketing, particularly in the launch and commercialization of products, and he will be instrumental in the execution of our short and long term strategy. We are committed to managing our cash resources in a manner that will allow us to continue our operations and undertake business development activities beyond the end of the 2013 fiscal year."
Update of Certain Previous Announcements
At the request of the TSX Venture Exchange, the Company is providing updates on certain previous announcements as follows:
-- Due to substantial political uncertainty and local challenges, the status of the contract to supply housing to Haiti and Ghana announced on July 11, 2011 is currently uncertain and the Company cannot predict if, or when, this contract will move forward.-- The agreement to provide highway sound barrier panels announced on October 5, 2011, is currently not moving forward due to a change in priorities by both parties. The agreement may be revived at a later date.-- The cooperation agreement intended to supply homes in Brazil announced on November 10, 2011 has not resulted in the definitive agreements necessary to move the project forward and has been terminated.-- The purchase order for homes for Antigua and Barbuda announced on April 17, 2012 has not been fulfilled due to difficulties encountered by the developer in arranging financing. The Company has initiated legal proceedings for damages in Antigua.-- The August 28, 2012 press release by the Company reporting its Third Quarter fiscal 2012 financial results included references to signed Memorandums of Understanding relating to North Dakota, and to the engagement of the Lynch Group to represent ICI in the automotive sector. There have been no material developments with respect to these two items.-- The Company has elected to terminate the spin-off of its fire retardant assets that was previously announced on September 12, 2012, and is now actively continuing with the development of those assets. Fire retardants constitute a fourth business segment for the Company, in addition to: housing; shelters and containers; and industrial applications.
About Innovative Composites International Inc.
Headquartered in Toronto, Canada, Innovative Composites International Inc. (TSX VENTURE: IC)(OTCQX: ICIZF) is a high-tech engineering and manufacturing company whose goal is to utilize its proprietary "green" composite materials and building systems to provide innovative, engineered product solutions to markets that include prefabricated modular housing, shelters and containers, and industrial applications.
To find out more about ICI please visit our website at: www.innovativecompositesinc.com.
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Statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for ICI's products and the availability of funding. These forward-looking statements are made as of the date hereof and ICI does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from ICI's expectations and projections.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Innovative Composites International Inc.
Chief Financial Officer
(416) 646 0754