SGDH RELEASES BIG NEWS
SGD Holdings, Ltd. Strikes New, Mutually Beneficial Agreement With Aclor, Inc.
Sgd Holdings Ltd (USOTC:SGDH)
Intraday Stock Chart
Today : Thursday 31 March 2011
SGD Holdings, Ltd. (PINKSHEETS: SGDH), parent company of premier environmentally friendly paper products manufacturer EcoPaper, Inc. (www.ecopaper.com), today announced that the company on March 8, 2011 entered into an agreement with Aclor, Inc. in which SGD Holdings will become a primary supplier of raw materials for Aclor brands. Aclor, Inc. has submitted a purchase order to EcoPaper, Inc. in the amount of $10 million worth of raw paper materials. The order is anticipated to be fulfilled and delivered no later than August 31, 2011.
Aclor, a privately held U.S. stationery and paper products manufacturer and distributor, is also entering into an equipment leasing agreement with SGD Holdings in order to expand its own current manufacturing volume.
EcoPaper is also in the process of securing financing for the purchase of more than $2 million of additional manufacturing equipment that assists with and enhances order fulfillment, and increases the viability of leaseback options to Aclor.
A letter of intent for SGD Holdings to acquire the assets and intellectual property of Aclor was signed in November 2010 with an expiration date of February 28, 2011. With an innovative and mutually beneficial solution in place and expiration of the letter of intent imminent, SGD Holdings has opted not to continue pursuit of the acquisition of Aclor's assets and intellectual property.
"We always keep a keen eye on maximizing shareholder value, and this option is the wisest for all parties involved," said Harry Johansing, CEO of SGD Holdings, Ltd. "In the pursuit of acquiring Aclor, we recognized that the only available financing methods would dilute the company's stock. It makes more sense for both companies to pursue other mutually beneficial options, such as this $10 million order, that leverage our joint strengths and increase our global reach. We're excited about the new technologies and methodologies our new equipment will provide, and this alternative agreement enhances our strategic plans for growth to the mutual benefit of SGD Holdings, its stockholders and investors, and to Aclor as well."
Aclor, Inc. is currently based in Atlanta, GA with manufacturing plants and sales and distribution facilities located in Laredo, Texas and Mexico.
About SGD Holdings, LTD. SGD Holdings, LTD. (PINKSHEETS: SGDH) is a holding company which and operates through its wholly-owned subsidiary, EcoPaper, Inc. (http://www.ecopaper.com.). Through internal research and development, as well as through acquisition, the company aspires to create and acquire new technologies, products and methodologies which have the potential to positively impact the environment. For more information regarding SGD Holdings, Ltd. e-mail ir@ecopaper.com.
About EcoPaper, Inc.:
After developing an innovative and an economically feasible option for removing a portion of the more than 230,000 tons of agro-industrial waste generated annually by Costa Rica alone, EcoPaper, Inc. became among the first companies worldwide to create and implement processes for manufacturing and bringing to market tree-free, eco-friendly, beautiful, sustainable paper products of superior quality created from exotic tropical fibers. Founded by Harry Johansing, EcoPaper is proud that every sheet of EcoPaper product is smooth, acid-free, durable, chemical-free, and caringly manufactured. For more information regarding EcoPaper, Inc. visit www.EcoPaper.com or ir@ecopaper.com.
Direct press inquiries to ir@ecopaper.com or matt@kellerking.com.
Forward-Looking Statements: The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from acquisitions or actions in development, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "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. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties, and factors include, but are not limited to, future capital needs, changes and delays in plans and schedules, or market acceptance. SGD Holdings, Ltd. undertakes no duty to update these forward-looking statements.
Contact
Harry Johansing
805-644-4462
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