Largest European Paint Protection Product Dealer in XPEL Network
Ownership Interests in Italy, France, Greece, S.E. Asia and Australia
SAN ANTONIO, June 1 /CNW/ - XPEL Technologies Corp. (TSXV:DAP.U)
announced today the signing of a non-binding letter of intent to acquire 100%
of the stock of United Kingdom-based Paintshield Limited ("Paintshield").
Founded by Mr. Tom Wakeford, Paintshield has been an XPEL product distributor
since its inception in May of 2003, and has served as the exclusive design arm
for XPEL's European product design activities. The company's impressive client
list includes Rolls Royce Motors, Aston Martin, Porsche GB, and Ascari Cars,
and its reputation for superior protection product installation in Western
Europe is second-to-none. Paintshield also maintains joint venture ownership
interests in Paintshield affiliates in the markets of Italy, France, Greece
(Balkans), S.E. Asia and Australia which are also being acquired by XPEL as
part of the transaction. Paintshield U.K., without contribution from its
affiliates, is projected to add approximately US$1,000,000 to XPEL's top line
revenue in 2007.
XPEL's Chief Executive Officer, Steven J. McAuley, stated, "This is
another great opportunity for XPEL to continue taking control of the growing
global markets for paint protection products. Paintshield brings great market
knowledge and management, immediate positive financial impact while increasing
our design capabilities to expand even further our library of automotive
paint, headlight and window tint protection patterns. Paintshield currently
has an active relationship within the racing community throughout Europe, with
the likes of Formula I, the Grand Prix Masters, the GT Race Series, and
Formula BMW. These relationships will help us continue growing awareness for
the Paintshield brand with race fans in Europe and compliments our efforts to
build a global XPEL Motorsports brand." Mr. McAuley further commented,
"Regarding brand, 'Paintshield' is a highly descriptive and very intuitive
corporate brand name which we intend to fully utilize to build stronger brand
awareness for our products in North America and around the world. I am excited
about our expanded global reach and look forward to having Tom Wakeford on our
team in his capacity as Managing Director of the newly formed XPEL
wholly-owned United Kingdom subsidiary."
Paintshield's Managing Director, Mr. Tom Wakeford, added, "We are
extremely excited about the prospects this integration brings to both
organizations, including the significant investment capability to support our
aggressive growth strategies for the European marketplace. Paintshield is
currently the number one choice for consumers of paint protection film
products within the markets in which we operate. The desire to produce nothing
but the best in delivered results to our clients has made the Paintshield
brand recognized in many countries around the world as the hallmark of quality
in automotive paint protection. This consolidation is a great move for both
companies and I look forward to working as part of the XPEL team who have been
exceptional partners during the last four years of our relationship."
The contemplated transaction as described herein is subject to a final
due diligence review, the execution of a definitive agreement, and regulatory
approval by the TSX Venture Exchange and any other entities maintaining
The Company also announced today that it has arranged to complete a
non-brokered private placement of up to US$1,250,000 at a price of US$2.00 per
Unit. Each Unit consists of one common share of the Company and one warrant.
Each warrant entitles the holder to purchase an additional common share of the
Company for two years from the closing date at a price of US$2.40 per share.
The Company will pay up to a 10% finder's fee. The proceeds from the financing
are intended to be used for the Company's acquisition opportunities. A
four-month hold period from the time of closing will apply to any securities
issued pursuant to this offering.
XPEL Technologies Corp. is the worldwide leader in the electronic
delivery of automotive aftermarket products, utilizing the Internet as an
integral component for its design, manufacturing, distribution and customer
relationship strategies. The Company's DAP software utility offers Dealers the
industry's most efficient and productive tool set to better serve customers
with "best-in-class" solutions in real time. XPEL has clear advantages over
the competition through its expansive proprietary library of
installation-friendly paint and headlight protection and window tint products,
coupled with unique web-based remote manufacturing and distribution software,
superior installation training curriculum and world-class facilities, with
established and growing sales channels.
The TSXV has not reviewed and does not accept responsibility for the
adequacy and accuracy of this information.
For further information:
For further information: XPEL Technologies Craig K. Clement,
210-678-3716 Senior Vice President email@example.com www.xpel.com