Wednesday, July 21, 2004
International Barrier Completes US $1,249,500 Financing for Manufacturing Plant Enhancements to Facilitate Sales Growth and Licensing Opportunities for Blazeguard®
Watkins, MN, Vancouver, BC, July 21, 2004 - International Barrier Technology, Inc. ("Barrier") (IBTGF: OTCBB; IBH: TSXV), ), which manufactures and markets the Blazeguard® brand of fire resistant building materials, has renegotiated its private placement (previously reported July 8, 2004) and subject to regulatory acceptance, the company has closed a private placement with an affiliate of Carl Marks & Co. Inc. ("Carl Marks"), for the amount of 1.47 million units at a price of 85 U.S. cents per unit ($1.10 (Canadian)) for gross proceeds of $1,249,500 (U.S.) ($1,614,979 (Canadian)). Each unit consists of one common share and one non-transferable share purchase warrant. The warrants have an exercise term of two years from the closing date. One warrant and 92 U.S. cents ($1.19 (Canadian)) will entitle the placee to acquire an additional common share of the company. The proceeds will be used for capital improvements to Barrier's subsidiary's manufacturing facilities in Watkins, Minnesota and for working capital.
Carl Marks is a New York based privately owned merchant bank that has invested as a principal in more than 400 businesses through its private equity, distressed security, venture capital and real estate divisions and has completed more than 250 consulting and financial advisory engagements. The firm is an existing shareholder in Barrier and this recent private placement will increase its holdings to over 10% in Barrier.
Barrier is investing in capital improvements at their existing facility in Watkins, MN to:
Evergreen Engineering, headquartered in Eugene, Oregon, has been contracted to develop a detailed engineering plan for this project. Evergreen has extensive experience in designing and building product manufacturing facilities and is well positioned to help Barrier in this endeavor. Barrier retained Evergreen in March 2004 to conduct a feasibility study, which was recently completed. As a part of this contract, Evergreen will oversee installation and start-up of the new manufacturing equipment and aid in the "start-up" process. The entire project is expected to take up to 10 months to complete, however, management expects to achieve incremental improvements in efficiency and capacity within 90 days.
- further expand production capacity to help accommodate rapidly increasing sales
- achieve new production efficiencies that will reduce labor and material costs and improve gross profit per unit
- create a model manufacturing plant design and operation that will serve as a licensing prototype, allowing potential licensees from all over the world to see exactly what a state of the art facility would comprise.
"Between sales growth that has far more than doubled in the first half of this year, new initiatives to expand our markets, and the prospect of significant additional strategic relationships, it is prudent that we now invest in new technology and processes," stated Mike Huddy, president. "We want to ensure that we can deliver the fastest but most profitable rate of sales growth and be well positioned to advance on strategic sales and licensing opportunities with a suitable plant design. The significance of this endeavor is as relevent and important as anything we have ever undertaken with this company. I could not be more excited about the new business prospects these manufacturing improvements will provide for our US based manufacturing operations and the opportunities they will facilitate for our global licensing objectives."
About International Barrier Technology Inc.
International Barrier Technology, Inc. develops, manufactures, and markets proprietary fire resistant building materials. Its patented, non-combustible, non-toxic Pyrotite formulation has an extraordinary capability: it releases water when exposed to the heat of fire. Barrier's award-winning Blazeguard wood panels exceed International Building Code requirements in every targeted fire test and application, and uniquely combine properties that increase panel strength and minimize environmental and human impact. Blazeguard customers include Centex (CTX: NYSE), D.R. Horton (DHI: NYSE), KB Home (KBH: NYSE), and Lennar (LEN: NYSE). Lowe's Companies (LOW: NYSE), Stock Building Supply, and Mule-Hide Products Co., Inc. are Blazeguard distributors. Pyrotite has potential applications with engineered wood products, paint, plastics, and expanded polystyrene
Barrier is part of the DJ Building Materials Index (US)
INTERNATIONAL BARRIER TECHNOLOGY INC.
Per: "MICHAEL HUDDY"
President & Director
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS PRESS RELEASE.
Forward-Looking Information: The statements in this news release contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks, assumptions and uncertainties, including but not limited to the ability to generate and secure product sales. In each case actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or modified) will not be realized.
International Barrier Technology Inc.
Richard Angle, 866-735-3519
ECON Investor Relations, Inc.
Peter Kletas, 866-948-0848
Source: International Barrier Technology Inc.
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