PayChest Signs Letter of Intent to Acquire Xinpro Manufacturing
2012-05-02 11:33 ET - News Release
HONG KONG -- (Marketwire) -- 05/02/12
PayChest, Inc. (PINKSHEETS: PYCT)
PayChest Inc. (the "Company") is pleased to announce that, following the recently received $1.2 million Purchase Order, the Company has signed a Letter of Intent with Xinpro Manufacturing to acquire their business, as allowed under the terms of the Manufacturing Agreement.
The acquisition of Xinpro, when completed, adds a new line of business to PayChest allowing it to manufacture and sell biodegradable films; a growing field. It would also diversify the Company's revenues and risk, and sets the stage for the rollout of other product lines. In addition to the large sanitary products market, the acquisition would create the opportunity to move into the medical and bio-plastics fields.
As announced on March 2, 2011, the Manufacturing Agreement with Xinpro Manufacturing became effective upon the set up of a production facility and delivery of the first machine tailored exclusively for the manufacture of Flushaway® products. Production of polyvinyl alcohol film is a key component in Mibella® and Flushaway® products that can be used in other applications.
The acquisition of Xinpro allows PayChest to capture more of the profits associated with the Mibella® and Flushaway® product sales thereby increasing Company profitability.
The opportunity to acquire Xinpro has been made possible following the recent, first purchase order of $1.2 million for Mibella® that triggers an option to acquire Xinpro. Other purchase orders are being negotiated.
