Michelex Corp. Announces Recent Events and Occurrences
Wednesday March 15, 1:59 pm ET
MASSENA, N.Y., March 15, 2006 (PRIMEZONE) -- Michelex Corp. (Other OTC:MLXO.PK - News) ``Michelex'' (or the ``Company'') a plastic manufacturing company and an audio record production group, announces to its shareholders that it is negotiating a settlement agreement with Wells Fargo Business Credit to pay them off on their term loan which is currently due. Michelex and Wells Fargo are in dispute on the amount owed. The Company has obtained financing to pay them off on the real estate portion and is optimistic that the equipment portion will be finalized shortly. The Company believes that once the Wells Fargo Business Credit dispute is settled, then they will be able to run their factories back at a normal pace. While there can be no assurance that the Company can settle the disputes, Wells Fargo Business Credit and Management have agreed that it would be in the interest of both parties for a settlement to occur. This would allow the revenue to return to ``pre 2004'' levels. Management believes that there is strong demand for their products.
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The Company is currently updating all financial statements and has hired, Gersten Savage LLP, a New York based law firm as its new SEC counsel to assist with getting it relisted on the OTCBB. The Company will try to raise additional capital and negotiate for new equity funding that will not be toxic to the company. These proceeds will be used for working capital and potential acquisitions (see statement below). Management has projected sales for 2007 to grow to $21 million -- if the acquisition/merger of Sagoma Plastics, a Maine company, takes place, it could increase its projected revenue to over $30 million.
Statement from Paul Gelardi, the managing director of PTG, LLC, a Biddeford, Maine Company expressed his favorable views in a potential Merger:
``Thomas Gramuglia, President of Michelex and Paul Gelardi managing director of PTG, LLC, the new owner of Sagoma Plastics, are discussing how the two companies could combine manufacturing plants and distribution of Michelex with the design engineering of Sagoma patented products.
``We service large OEMS with our patented products but don't reach small to mid size media companies like Michelex.
``With the Michelex Salt Lake City molding plant and customers on the west coast we would significantly increase our sales of DigitalBooks, Clip Paks and disc trays.
``Sagoma's design, engineering and new business development group headed by Tony Gelardi has six new programs that could utilize existing Michelex facilities and molding machines to produce and service these new products.
``We will continue to do product design and some manufacturing in Maine but look to Michelex for the bulk of our growth.
``We believe a venture with Michelex would be very beneficial for both companies.''
About Michelex
Michelex Plastics -- Founded in 1972, is a manufacturer/importer and distributor of C-Zero's, Cshells, Norleco Boxes, Jewel Boxes, DVD Boxes and other related specialty plastic products. The company has manufacturing facilities and distribution points in New York and Salt Lake City. The company employs people who are committed to the customers and to the operations of the business. Michelex offers a full range of products through its divisions to make it a one-stop shop for its customers.
Michele Audio -- Audio duplication services and an exclusive rights holder of a large catalog of music and spoken word recordings.
Michelex Media Products -- Producer, supplier and distributor of paper multimedia packaging products, also offering complete fulfillment services to its customers.
Safe Harbor:
This release may contain forward-looking statements within the meaning of the Private Securities Litigation reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of the Company's business include but are not limited to fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company's SEC reports.
Contact:
Michelex Corp.
Thomas Gramuglia
(315) 769-2448
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Source: Michelex Corporation
