MORE NEWS from CBLY!!
(IBRC owns 5,000,000 shares of CBLY)
American Fiber Optic Group Inc., a Wholly Owned Subsidiary of Capstone Technologies Group Inc. (CBLY-OTC), Announces update on their new state-of-the-art Manufacturing Facility
PALMETTO, FL -- (Marketwired) -- 12/08/16 -- American Fiber Optics Group, Inc.,a wholly owned subsidiary of Capstone Technologies Group Inc. (OTC PINK: CBLY), is currently in the process of building an optical fiber preform manufacturing facility to be located in a strategic location that has existing unused manufacturing facilities, such as the Detroit, Michigan area or another suitable location. This facility will be a state-of-the-art facility using USA technology to manufacture optical fiber preforms that will be used to manufacture fiber optic cable for US and Worldwide markets. The AFOG facility will have many advantages over other main competitors in Japan and China due to the availability of an existing skilled workforce abandoned by industries leaving the area, lower tax restrictions, unused manufacturing facilities and a USA jobs oriented atmosphere in the new US Government administration in 2017.
Fiber Optic Cable is in high demand with annual growth rates in excess of 11%. The current marketplace is struggling to keep up with this demand as the need for more preforms, which is the initial component used to manufacture optical fiber, is increasing as markets around the world demand more fiber optic cable. Preforms are the most attractive portion of the optical fiber cable supply chain demonstrating about 70% of the profit made in the optical fiber industry. This part of the market is the most attractive portion of a very strong growth industry with high margins, few competitors, high barriers to entry and an excellent outlook for future growth.
The initial business model for AFOG is to begin building in stages, a 20 million kilometer per year preform capacity plant with a total of 10 million kilometers coming online at the end of year one with a steady increase up to 20 million kilometers of preforms by the end of year two. In doing this AFOG will employ a local workforce of over 100 local salaried and hourly employees with an estimated payroll of in excess of $9,000,000 per year at full capacity. This facility will be able to generate gross sales revenues of over $80,000,000 per year when at full capacity. This will be a boon to the local community, as more revenue will be realized by businesses providing services to this booming manufacturing industry and its employees.
After the initial two-year growth period AFOG will continue to expand its preform operation in to drawing and selling Fiber which will require addition investment and job opportunities and increase revenues upwards of $144,000,000. AFOG is already looking at partnering opportunities for expansion with other industry giants in the Fiber Optical Cable industry that will drive additional manufacturing facility requirements and promote additional job growth.
Completion date is scheduled for December 31, 2017.
Safe Harbor Statement:
This press release may contain forward looking statements and or observations which are based on current expectations, forecasts, and assumptions that involve risks as well as uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues as well as any payment of dividends on our stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. These risks and uncertainties include but not limited to information as contained within the Company's most current quarterly reports, annual reports, and or other such filings as may be accessed through the OTCBB website. Furthermore, the Company disclaims any intention or obligation to update or revise any such forward looking statements, whether as a result of new information, future events, or otherwise. We have incurred and will continue to incur significant expenses in our expansion of our existing as well as new product lines noting there is no assurance that we will generate enough revenues to offset those costs. Additional product offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the variables as associated with the general business channel we are operating in, the impact of which cannot be predicted at this time including risks as associated with our product and recent FDA pronouncements. Additionally, our 1-A registration statement will generate additional free trading shares to the marketplace at a predetermined price which may impact our share pricing within the OTC marketplace in a manner that we cannot predict.
Investor Contact:
Capstone Technologies Group, Inc.
(888) 676-4138
Source: Capstone Technologies Group Inc.
