Submitted by: Colorep, Inc.
Posted: Mar 31, 2008 – 12:33 PM EST
RANCHO CUCAMONGA, Calif., March 31 /PRNewswire/ -- Colorep Inc. ("Colorep, the Company"), a leader in sustainable subsurface printing and dyeing technology, announced today that it has completed a $23.9 million private placement (the "Financing").
Larry Levy, Colorep's Chairman & CEO, stated, "This private placement will allow Colorep to expedite its immediate growth strategies. We are extremely pleased that Quercus Trust, who is well known for its commitment to environmental sustainability, led this transaction and has now become our largest shareholder." Levy continued on to say, "the initial marketplace response to the introduction of Colorep's patented AirDye(TM) technology for dyeing and printing textile products has been very positive. In addition, Ecobanner(TM), a fabric solution for in-store retail displays using the Company's sustainable printing methods and recycled materials, has received extraordinary response in the marketplace. Having the necessary funds to capitalize on the growing demand for these products is very exciting."
A portion of the proceeds from the Financing was used to complete the previously announced acquisition of TransprintUSA and repay certain related debt obligations. The remainder of the proceeds will provide growth capital as well as be used for general corporate purposes.
Under the terms of the Financing, the Company sold shares of common stock and issued warrants entitling the holder to purchase additional shares of common stock at a premium to the price paid per common share purchased in the private placement. Concurrent with this Financing, $3.2 million of debt which related primarily to loans made in advance of the private placement was converted into common stock at the same valuation as the private placement.
Merriman Curhan Ford & Co., Ardour Capital Partners and Fraser Mackenzie Limited acted as placement agents in the Financing.
About Colorep, Inc.
Colorep, Inc. (www.colorep.com) is a leader in subsurface printing and fabric dyeing technologies, providing products and services to the promotion, apparel, commercial furnishings and home decor markets. The Company provides these services to companies through BetaColor LLC, its printing applications division and through the licensing of its technology to manufacturers in these addressable markets. The Company's technology encompasses a range of advances in the coloration and decoration of fabrics, plastics, and coated metals. Its AirDye(TM) technology introduces coloration of fabric without the use of water and other negative environmental impacts. Transprint USA, Inc. (www.transprintusa.com), a wholly-owned subsidiary of Colorep, is the nation's leading supplier of transfer-printing paper for decorating Polyester, Polyester rich substrates and certain other synthetic materials. With a design library of over 13,000 designs, Transprint is a leader in design choice and innovation. The Company's products include Transwide(TM), a patented, exclusive product providing transfer-printing paper up to 126" (320cms) and Transeeze(TM), a release paper product for the printing of vinyl and other plastics. Transprint USA supplies its worldwide customer base through a direct sales force and agents throughout the world.
Forward-Looking Statements Disclaimer
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking information made on the Company's behalf in this Press Release. All statements, other than statements of historical facts which address the Company's expectations of sources of capital or which express the Company's expectation for the future with respect to financial performance or operating strategies, can be identified as forward-looking statements. Such statements made by the Company are based on knowledge of the environment in which it operates, but because of the factors previously listed, as well as other factors beyond the control of the Company, actual results may differ materially from the expectations expressed in the forward-looking statements.
For more information, please contact: