Omni-Lite lands four new military, sports contracts
Omni-Lite Industries Canada Inc.
July 7, 2006
Omni-Lite Industries Canada Inc. has landed two new contracts in the military division. In total, the company has received five orders for these components within the last two months. The company has also landed two new sports and recreation contracts. The total value of these four new contracts is approximately $456,000.
The company's revenues for the second quarter of 2006 were approximately $1,342,400 (U.S.) or $1,503,500 (Canadian), an increase of 33 per cent over the same period in 2005. This performance represents record quarterly revenue for the company. Revenue for the first two quarters was approximately $2,356,080 (U.S.) or $2,639,045 (Canadian), an increase of 22 per cent over the period in 2005 and again a record for the six-month period. "Third quarter revenue will begin to show the very significant technical breakthroughs recently achieved in the large military project started seven months ago," stated Allen Maxin, vice-president of operations. "Omni-Lite has made a major contribution to the quality and manufacturing efficiency of this product line."
At the annual and special shareholders meeting held in Calgary on June 30, 2006, the four resolutions that included electing the directors, appointing the auditor, approving the company's stock option plan and a special resolution authorizing the split of the company's stock on a two-for-one basis were passed. Notwithstanding that this special resolution (the stock split) was passed by a margin of approximately 72 per cent of the shareholders that voted, the resolution also authorized the directors to revoke the resolution and not proceed with the stock split if market and other conditions were not deemed favourable to the company and its shareholders. It is management's perception that a stock split could help to improve the liquidity of the company's shares, but given the recent downturn in market conditions over all, the timing for a stock split is not favourable. Accordingly, the directors have decided not to proceed with the stock split until September at the earliest.
Omni-Lite Industries will be featured on Market News First at 9 a.m. (Pacific Time) on July 7, 2006. To hear the live interview with David Grant, chairman and chief executive officer, go to the Market News website.
Except for historical information contained herein this document contains forward-looking statements. These statements contain known and unknown risks and uncertainties that may cause the company's actual results or outcomes to be materially different from those anticipated and discussed herein.
THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES OF THE
INFORMATION CONTAINED HEREIN.
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