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Michelex Signs LOI to Acquire Ag Pro, Ltd and Enters the Bio-Diesel Market
MASSENA, N.Y., Nov. 20, 2006 (PRIMEZONE) — Michelex Corp. (Pink Sheets:MLXO) “Michelex” (or the “Company”) a plastic manufacturing company and an audio record production group announced today that it has signed a Letter of Intent to acquire Ag Pro, Ltd, (www.agprosoy.com). Ag Pro, Ltd. owns and operates a soybean and oilseed crushing plant in Massena, New York. The plant processes soybeans into soy meal and crude soy oil. Its current crushing capacity is 150 tons of soybeans per day, which will be increased to 250 tons. The refinery has a capacity of 50 tons of oil per day. Ag Pro’s state-of-the-art oil refinery is a physical refinery, rather than a chemical refinery like most others. It produces soy oil with zero trans-fats. Soy oil is also used to produce bio-diesel. Michelex plans to utilize the majority of the soy oil production for making bio-diesel. What is unique about Ag Pro, Ltd. is that its oil can be used as a high quality edible oil, or as a feed stock for bio-diesel depending upon market conditions. St. Lawrence County is well suited for the production of soy beans with its ample farm land. In full production, the crushing plant would need 100,000 acres in soy.
The estimated replacement cost of all Ag Pro, Ltd. assets is upwards of 12 million dollars. It is the intention of Michelex to construct a bio-diesel etherification plant next to Ag Pro, Ltd. in the Massena Industrial Park. The capacity will be a minimum of 10 million gallons per year. The newly proposed facility will process bio-diesel from a variety of oil feed stock. This versatility will not limit the production only to the crushing plant’s soy oil output. The bio-diesel plant will be financed by the sale of Industrial Development Bonds. The St. Lawrence County IDA has written a letter of support for this project.
The acquisition is based on cash and stock considerations.
Thomas Gramuglia, President and CEO of Michelex stated that he “is very excited about the proposed acquisition of Ag Pro, Ltd. as my family has been in the crushing and refining business for edible oil in Italy since 1919. The Italian company has an outlet for sale of its olive oil here in the U.S. at www.oliverioil.com.”
Michelex would also like to update its shareholders that the 10Qs for March, June and September 2006 are expect to be filed before the Thanksgiving holiday.
Safe Harbor:
This release may contain forward-looking statements within the meaning of the Private Securities Litigation reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of the Company’s business include but are not limited to fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company’s SEC reports.
