Ameriplas sale will raise capital for growth
Canadian PlasticsCanadian Plastics
The sale of a fast-growing PET preform manufacturer in Quebec to a capital pool company in Vancouver is poised to g...
The sale of a fast-growing PET preform manufacturer in Quebec to a capital pool company in Vancouver is poised to go ahead, pending a few final regulatory approvals. Although termed a sale, the transaction will effectively make Ameriplas International Ltd. of Marieville, QC, a public company and raise capital for expansion, while maintaining control in the hands of the original owners.Cordova Industries Ltd., a capital pool company, has conditional approval from the TSX Venture Exchange to acquire Ameriplas, and received shareholder approval for the venture on Sept. 26.Mark Brown, a director of Cordova, explains that capital pool companies are designed to find private businesses and turn them public. As Brown explains it, in this transaction Cordova will issue 14 million common shares for 100% of the outstanding shares of Ameriplas. The three primary shareholders of Ameriplas — Clement Lussier, chairman and CEO; Andr Lussier; and Franois Fournier, president and COO will own about 80% of Codova’s shares. Ameriplas will be a subsidiary of Cordova.The transaction will raise about $550,000 for Ameriplas, which plans to move to a larger facility and expand its capacity.Ameriplas began molding preforms in December 1999, and had sales of $2 million in 2002. Sales for 2003 have already surpassed that figure. The company is now positioning itself to deliver on large orders for major North American bottling clients.