SOURCE: Axios Mobile Assets Corp
VAUGHAN, ON--(Marketwire - Aug 22, 2012) - As part of its aggressive growth plan, Axios Mobile Assets Corporation (CNSX: AXA) today announced it has entered into negotiations to acquire a majority interest in a Guelph, Ontario-based thermoset molder and assembler of composite products for the consumer and industrial markets. The acquisition will substantially expand Axios' current toll manufacturing capacity and product development capabilities. The acquisition provides Axios with production resources that will support current requirements under a recently signed $300 million (USD), five-year contract with Ongweoweh, a leading pallet procurement organization.
In addition to the manufacturing facility, through the acquisition Axios will gain a team of molders and custom material compounders with substantial experience in the industry. The Guelph facility, located just west of Toronto, will provide molding and automated assembly for Axios' innovative pallet products. It also will serve as a research and development center for the next generation of Axios products. The agreement is expected to close in September, and manufacturing operations are expected to begin in October.
"This combination of manufacturing capacity, industry expertise and research capability is a strategic step forward for Axios that will accelerate the development of our next generation pallets and enable us to provide our shareholders with the best use of capital through the ideal mix of both in-house and outsourced production," said Richard MacDonald, president and chief executive officer. "As our business grows, we look forward to providing Ongweoweh and other customers with our innovative and unique pallet solution manufactured in this facility, while at the same time conducting next generation product research and development."
The operation has current annual production capacity of 200,000 pallets and room for expansion and job creation as Axios adds to its customer base and backlog of orders.
About Axios Mobile Assets
Axios Mobile Assets Corp. is a logistics enabler, featuring next generation, composite pallet technology, which can be bundled with its proprietary RFID tracking and information system that helps improve the value chain in the logistics market. The Axios bundled offering is gaining market acceptance based on its unique attributes: lower total cost, longer useful life, customized configurations and a revenue stream through carbon credit generation, monitoring and the monetizing of carbon emissions reductions. Axios was incorporated under the Business Corporations Act (Ontario) and is a reporting issuer in the Province of Ontario. Axios is traded on the Canadian National Stock Exchange (CNSX) under the symbol AXA.
Further information concerning the Company can be found at www.axiosma.com, www.sedar.com and www.cnsx.ca.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this report and the documents that we incorporate by reference, are forward-looking statements and can generally be identified by words such as "will," "allow," "outlook," or the negative of these terms, and other comparable terminology. Various risks and other factors could cause actual results, and actual events that occur, to differ materially from those contemplated by the forward looking statements, such as whether Axios and the pallet management company are able to agree on the terms of a definitive supply agreement, and whether Axios is able to meet price, performance, quality and delivery requirements. Axios undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.