First major strategic acquisition in the United States
MONTREAL, Dec. 12 /CNW Telbec/ - Ranaz Corporation ("Ranaz" or the
"Company") (TSX-V: RNZ), a company specializing in the manufacturing and
marketing of protein and dietary supplements for weight loss and obesity
treatment, is pleased to announce that it has signed an agreement to acquire
Bar Tech Manufacturing, Inc. ("Bar Tech"), a manufacturer of nutritional bars
based in Grand Rapids, Michigan. For the 11-month period ended November 30,
2007, Bar Tech reported revenues of US $3.2 million, primarily from the sale
of private American brands of nutritional bars.
"The Bar Tech acquisition is very important for Ranaz and fits perfectly
with our strategy of expanding into the United States," said Jean
Bourassa-Marineau, President and Chief Executive Officer of Ranaz. "This
acquisition will put us nine months ahead of our manufacturing schedule for
nutritional bars, the only item whose production we subcontract out, and which
accounts for nearly 50% of our revenues."
The establishment of Ranaz manufacturing operations in the United States
also has many competitive advantages for the Company in the United States,
Canada and abroad. This manufacturing strategy will enable the Company to
produce bars at a more competitive price, access lower-priced ingredients for
the full range of ProtiLife and Protidiet products, immediately tap into the
private brand market and benefit from more competitive distribution and
logistics costs. This acquisition will have a major positive impact on gross
margins of all Ranaz products.
"Bar Tech has extensive expertise in the formulation of nutritional bars:
the plant is GMP and USDA Organic certified, and the production line is
already well suited to Ranaz's needs. We also estimate that this acquisition
will reduce our capital expense forecasts for bar manufacturing by nearly
$2 million. Bar Tech presently has a strong backlog, and the coming months
look promising," added Mr. Bourassa-Marineau.
"We are proud to team up with an emerging leader like Ranaz and the
seasoned management group behind it. We believe strongly in the Company's
potential and will help as best we can to achieve their program of expansion
in the United States," said Joe Bachmore, one of Bar Tech's founders.
Mr. Bachmore will stay on as Bar Tech's President and Chief Executive Officer.
Bar Tech reported unaudited results for the 11-month period ended
November 30, 2007 with sales of US $3.2 million and a net loss of US $171,000,
compared to sales of US $4.2 million and a net loss of US $396,000 for the
12-month period ended December 31, 2006. Bar Tech's backlog currently stands
at about US $700,000.
Ranaz will acquire all outstanding shares of Bar Tech, currently held by
four shareholders, in exchange for 738 673 common shares (the "Common Shares")
and 369 337 warrants (the "Warrants"). Each Warrant will enable its holder to
purchase one Common Share at a price of $1.30 during a 24-month period
following its issuance.
The transaction will close as soon as Ranaz completes its due diligence
of Bar Tech and obtains the required regulatory approvals. The shareholders of
Bar Tech are not related parties of Ranaz, and no intermediary fee will be
paid pursuant to this acquisition.
The Common Shares and Warrants to be issued pursuant to this acquisition
will be subject to a four-month hold period, in accordance with applicable
securities legislation and the policies of the TSX Venture Exchange.
About Ranaz Corporation
Ranaz is a corporation specializing in the manufacture and marketing of
protein and dietary supplements in relation to weight loss and obesity
treatments. Its mission is to design, develop and market nutritional, protein
and dietary supplements under its own corporate brands, such as Protidiet and
ProtiLife, as well as under private labels.
Certain statements contained in this news release, other than statements
of fact that are independently verifiable at the date hereof, may constitute
forward-looking statements. Such statements, based as they are on the current
expectations of management, inherently involve numerous risks and
uncertainties, known and unknown, many of which are beyond Ranaz's control.
Such risks include but are not limited to: the impact of general economic
conditions, changes in the regulatory environment in the jurisdictions in
which Ranaz does business, stock markets volatility, fluctuations in costs,
and changes to the competitive environment due to consolidation, as well as
other risks disclosed in public filings of Ranaz. Consequently, actual future
results may differ materially from the anticipated results expressed in the
forward-looking statements. The reader should not place undue reliance, if
any, on the forward-looking statements included in this news release. These
statements speak only as of the date made and Ranaz is under no obligation and
disavows any intention to update or revise such statements as a result of any
event, circumstances or otherwise.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Ranaz Corporation: Martin Vidal, Executive Vice
President, (450) 491-7106, ext. 213, firstname.lastname@example.org; SOLAK
Communications: François Kalos, President, (450) 993-0828, email@example.com;
Media: Impact Communication: Carlo Tarini, President, (514) 916-2436,