ACMG NEWS
MONTREAL -- (MARKET WIRE) -- 02/26/07 -- Alcar Chemicals Group Inc. (PINKSHEETS: ACMG) announces today that it has reached an important milestone by consolidating the two contracts with A-M Polymers into a single contract worth $160M over a five year period and automatically renewable.
The company stated that Alcar Chemicals Group has reviewed its two contracts with A-M polymers for raw materials and licensing of its polymer formulation technology and consolidated these into one single contract worth $160 million USD or $32 million USD dollars per annum for a period of five years. According to the company the contract outlines a new delivery schedule starting in September of the current year.
"A-M Polymers is presently building their first resin manufacturing plant which will be ready in August. We are very pleased with the signed contract and are highly confident that we will be able to meet the newly established delivery schedule," said Dr. Cavasin, CEO of Alcar Chemicals Group. "With the cash injection guaranteed by Siam Renewable Energy Group Ltd., which we expect to be finalized very shortly, our initial plant will remain on schedule and we will be able to fulfil our contractual obligations," further added Dr Cavasin.
The company recently announced the signing of a letter of intent with the Siam Renewable Energy Group Ltd., a South East Asia Consortium for the acquisition of a controlling interest of the company with a total investment of $282 million USD, which includes an immediate funding of $7.2 million to complete the Canadian plant and the required scale-up engineering.
About The Alcar Group
The Alcar Chemicals Group (PINKSHEETS: ACMG) represents a significant market opportunity due to a serious worldwide supply shortage of raw materials for polymers as well as an increased requirement for ethanol and biodiesel. ACMG has been concentrating on innovative methods for biomass (forestry waste, agricultural waste and non-food crop) valorization for the past decade, specifically petroleum-independent fuel and plastics resin production. Its proprietary technology represents today's most economical and advanced manufacturing process for plastic raw materials, ethanol and bio-diesel, allowing production at cost savings of up to 40% when compared to current production methods.
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
Investor Contact:
