Compositech Ltd. Closes $24 Million Joint Venture in Canada.HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Oct. 17, 1997-- Company's Second Copper-Clad Laminate laminate, n a thin slice of porcelain or plastic fabricated in a dental lab, which is cemented to the front of the teeth to cover gaps, whiten stained teeth, or reshape chipped or broken teeth. Production Facility to be Built in Montreal Compositech Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CTEK) announced today that it had closed its previously announced transaction with a Quebec investor group to form a 50/50 joint venture in Canada. The joint venture plans to establish a plant in the Montreal area for the production of copper-clad laminates for printed circuit boards using a patented process and equipment developed by Compositech Ltd. The Montreal plant, planned to begin production late in 1998, is expected to have an annual sales capacity of at least $30 million. Production from the plant will be marketed principally in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. through Compositech Ltd. Fred Klimpl, President, said, "Our partners in this venture include some of the largest and most influential organizations in Canada active in joint venture and investment projects. We are pleased that we shall be building with them a world-class facility to manufacture our revolutionary, superior copper-clad laminates. This location, combined with our New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of operation, is expected to meet anticipated North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. demand for our product line." The investor group is comprised of four institutional investors: Societe Generale de Financement du Quebec, Fonds de solidarite des travailleurs du Quebec (F.T.Q.), Societe Innovatech du Grand Montreal and Fonds regional de solidarite Ile de Montreal. The total project is budgeted at over $24 million. Approximately $11 million will be invested by the joint venture participants. Approximately $13 million of the funds will be in the form of debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay pursuant to commitments from National Bank of Canada This article is about a commercial bank. For Canada's central bank, see Bank of Canada. National Bank of Canada (Banque Nationale du Canada) TSX: NA is the sixth largest bank in Canada, and so is one of the Big Six banks. and the Canada-Quebec Subsidiary Agreement on Industrial Development, an organization formed in 1991 to strengthen the Quebec economy by increasing major industrial investment. As part of the transaction, the investor group has purchased $5.4 million of Compositech Ltd. common stock at a price per share of $5.09. The funds received by Compositech Ltd. have been used for the purchase of its 50% interest in the joint venture. Compositech Ltd. develops, produces and markets innovative and superior copper-clad fiberglass epoxy epoxy Any of a class of thermosetting polymers, polyethers built up from monomers with an ether group that takes the form of a three-membered epoxide ring. The familiar two-part epoxy adhesives consist of a resin with epoxide rings at the ends of its molecules and a curing laminates used to make printed circuit boards, which are essential components of personal computers, workstations, data communication and telecommunications equipment, automobiles and virtually all electronic equipment. The statements made in this press release contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve a number of risks and uncertainties. Actual events or results may differ from the Compositech Ltd.'s expectations. In addition to the matters described in this press release, risk factors listed from time to time in Compositech Ltd.'s SEC reports and filings, including, but not limited to, its Quarterly Report on Form 10-QSB for the quarter ended June 30, 1997, as well as its annual report on Form 10-KSB for the year ended Dec. 31, 1996, may affect the results achieved by Compositech Ltd. This release is available on the KCSA KCSA Krannert Center Student Association KCSA Kentucky Crushed Stone Association (Frankfort, KY) KCSA Kyiv City State Administration KCSA Kalamazoo Christian School Association KCSA Kentucky-Canadian Studies Association Worldwide website at www.kcsa.com . CONTACT: Compositech Ltd. Fred Klimpl, 516/436-5200 or KCSA Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Joseph A. Mansi/Leslie A. Schupak, 212/682-6300 ext. 205/207 |
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