CANAVERAL INTERNATIONAL ANNOUNCES AGREEMENT TO ACQUIRE AUKLAND MEDICAL PLASTICS, INC.
MIAMI, Nov. 24 ~PRNewswire~ -- Canaveral International Corporation (NASDAQ: CANI) has signed an agreement to acquire Aukland Medical Plastics, Inc. (AUKLAND) for $1,500,000 in cash plus royalties and other consideration. This acquisition is intended to head up Canaveral's Medical Division. Aukland owns and controls a patent for a revolutionary polyeurothane plastic, trade named AUKUFLEX. The company feels that the AUKUFLEX plastic will be used as a replacement for many products currently manufactured from latex. Aukland is expecting FDA approval on it's polyeurothane condom. The AUKUFLEX condom is three times more tear resistant than ordinary condoms, while being only one half the thickness. This results in a condom that is more sensitive, odorless, non-porous, resistant to solvent and oil attack, and is priced equal to or less than that of latex. In addition, testing has shown that 80 percent of those couples who normally use condoms, prefer the AUKUFLEX condom. The condom market is perhaps the most dynamic growth market throughout the world. Recent increases in population growth and the universal concern over the proliferation of the HIV virus have caused an exponential increase in the demand for condoms worldwide. Sales of condoms in countries such as Germany and England have increased by rates of as much as 50-300 percent over the past 2 years. In addition, the demand for condoms in the third world and lesser developed countries including China and the former Soviet Union has exceeded the existing supply. The condom market in the United States alone, which accounted for over $500 million in 1990, was over $1 billion in 1992 and is expected to continue to grow. According to a study in 1990 by Bio-Medical Business, the polyeurothane condoms are the wave of the future. The study states that "Within 5 years, these companies (latex condom companies) could very likely find themselves literally squeezed off the store shelves in drug stores that will sell so many polyeurothane condoms that they may not be able to keep enough of them stocked." The company feels that Aukland has the inside track to marketing the first polyeurothane condom. According to the Bio-Medical Business Report, "Only one upstart firm, and possibly a second have perfected the requisite technology" to produce polyeurothane condoms. "Aukland, a privately held company, is expected to become one of two manufacturers of polyeurothane condoms in the U.S. Aukland has a patent on the dip type of process which competitors have not yet been able to surpass. Aukland is currently planning to purchase a facility in Pensacola, Fla. to manufacture these condoms. The company estimates that it will produce and distribute 50 million condoms at $.60 per condom in it's first year of production. -0- 11~24~92 ~CONTACT: Nicole D. Nehrke of Canaveral International Corp., 305-759-2441~ (CANI)
CO: Canaveral International Corporation; Aukland Medical Plastics, Inc. ST: Florida IN: MTC HEA SU: TNM
JB-AW -- FL006 -- 1015 11~24~92 11:19 EST
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|Date:||Nov 24, 1992|
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