December 24, 2012 – Toronto, Ontario – Innovative Composites International Inc. (“ICI” or the “Company”), (TSXV: IC) (OTCQX: ICIZF),
a producer of proprietary engineered composite products, is pleased to
provide a business update with respect to certain previous announcements
and current initiatives.
• The production of our specifically engineered enclosures announced on
September 5, 2012, and updated on November 7, 2012, is continuing and
the Company has started to receive a recurring flow of purchase orders
on a monthly basis.
• The Company has been awarded several modest contracts to supply “load
floors” in the automotive sector and has started receiving purchase
orders with respect to these contracts. In addition, the Company has
been receiving a steady flow of purchase orders from an existing
customer for Mattex, a proprietary fiberglass matt material that is used
in roof liner applications in the automotive sector, and has recently
received a purchase order for a new customer for Mattex. These
contracts for load floors and roof liners are evidence that ICI’s
proprietary thermoplastic RMor Skin and Mattex products are gaining
acceptance in the automotive sector.
• The Company has hired a new Vice President, Business Development, who
will be responsible for the sales and marketing function for all of
ICI’s market segments, including the fire retardant assets.
• The Company has signed a distribution agreement for its RapTER
shelters and containers with a distributor focussed on emergency relief
agencies on the U.S. east coast and is continuing to explore
opportunities to market the RapTERs to emergency relief agencies in
North America and internationally.
“ICI is continuing with the implementation of a multi-pronged
strategy to extinguish the operating burn rate and become cash-flow
positive during this fiscal year,” said Terry Ball, President and CEO of
ICI. “We are focussing on business segments with a shorter sales
cycle, such as industrial applications and shelters and containers, and
we view fire retardants as another high-potential business segment. In
addition, we remain in pursuit of longer sales cycle housing
opportunities, both internationally, and in North America, and we are at
various stages of business development in this area on a number of
projects. We are very pleased to have added Jim Loran as our new Vice
President, Business Development. Jim has a long record of success in
sales and marketing, particularly in the launch and commercialization of
products, and he will be instrumental in the execution of our short and
long term strategy. We are committed to managing our cash resources in
a manner that will allow us to continue our operations and undertake
business development activities beyond the end of the 2013 fiscal year.”
Update of Certain Previous Announcements
At the request of the TSX Venture Exchange, the Company is providing updates on certain previous announcements as follows:
• Due to substantial political uncertainty and local challenges, the
status of the contract to supply housing to Haiti and Ghana announced on
July 11, 2011 is currently uncertain and the Company cannot predict if,
or when, this contract will move forward.
• The agreement to provide highway sound barrier panels announced on
October 5, 2011, is currently not moving forward due to a change in
priorities by both parties. The agreement may be revived at a later
• The cooperation agreement intended to supply homes in Brazil announced
on November 10, 2011 has not resulted in the definitive agreements
necessary to move the project forward and has been terminated.
• The purchase order for homes for Antigua and Barbuda announced on
April 17, 2012 has not been fulfilled due to difficulties encountered by
the developer in arranging financing. The Company has initiated legal
proceedings for damages in Antigua.
• The August 28, 2012 press release by the Company reporting its Third
Quarter fiscal 2012 financial results included references to signed
Memorandums of Understanding relating to North Dakota, and to the
engagement of the Lynch Group to represent ICI in the automotive sector.
There have been no material developments with respect to these two
• The Company has elected to terminate the spin-off of its fire
retardant assets that was previously announced on September 12, 2012,
and is now actively continuing with the development of those assets.
Fire retardants constitute a fourth business segment for the Company, in
addition to: housing; shelters and containers; and industrial
About Innovative Composites International Inc.
Headquartered in Toronto, Canada, Innovative Composites International Inc. (TSXV: IC) (OTCQX: ICIZF)
is a high-tech engineering and manufacturing company whose goal is to
utilize its proprietary “green” composite materials and building systems
to provide innovative, engineered product solutions to markets that
include prefabricated modular housing, shelters and containers, and
To find out more about ICI please visit our website at: www.innovativecompositesinc.com.
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Chief Financial Officer
(416) 646 0754
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Statements made in this press release include forward-looking
statements that involve a number of risks and uncertainties. These
statements relate to future events or future performance and reflect
management’s current expectations and assumptions. A number of factors
could cause actual events, performance or results to differ materially
from the events, performance and results discussed in the
forward-looking statements, such as the economy, generally, competition
in its target markets, the demand for ICI’s products and the
availability of funding. These forward-looking statements are made as of
the date hereof and ICI does not assume any obligation to update or
revise them to reflect new events or circumstances. Actual events or
results could differ materially from ICI’s expectations and projections.