Omni-Lite Signs Long-Term Letter of Agreement with Current Automotive Customer
CERRITOS, CALIFORNIA, May 26, 2015 – Omni-Lite Industries Canada Inc. (the "Company") (TSXV: OML) is pleased to note that it has recently signed a long-term Letter of Agreement with an existing automotive customer. It is the intention of both parties to complete a Strategic Alliance Agreement detailing this arrangement by June 20, 2015. This program could ultimately include the development of several products and could include new intellectual property that would be shared by the parties. As such, the agreement will extend over the life of the patent(s), which would be approximately 20 years. "This program represents a significant development for Omni-Lite as it highlights the point that major customers are now willing to develop long-term product development and supply agreements with the Company," stated Allen W. Maxin, president. "Under this agreement the first products will be provided by August this year. The production ramp up is anticipated to continue through 2015 and 2016."
The Company is also pleased to note that it has received new contracts in the amount of US$577,413. Of these orders, approximately 46% are in the Aerospace division, 39% are in the Specialty Automotive division and 15% are in the Sports and Recreation division.
The Company's revenues in the first four months of fiscal 2015 were approximately US$2,140,000. This represents an increase of approximately 25% over revenues in the first four months of 2014. Over the same period, the Company's production output increased by approximately 37%. Of particular significance, military sales grew from a very small base to become 29% of sales in the four month period.
"The Company has recently received the large forging system that was sent back to Japan in November last year," stated Michael Walker, VP of R and D. "Quickly putting this machine back in service will be critical to meeting the new demands from both the Aerospace and Automotive Industries. Our production will again be enhanced when we receive the new custom modified, seven station forging system that is arriving in August of this year."
Omni-Lite Industries Canada Inc. is a rapidly growing high technology company that develops and manufactures precision components utilized by Fortune 500 companies including Boeing, Airbus, Bombardier, Embraer, Alcoa, Ford, Borg Warner, Chrysler, the U.S. Military, Nike, and adidas.
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.
For further information, please contact:
Tim Wang, CFO, Tel. No. (562) 404-8510 x108, or (800) 577-6664 (Canada and USA), Fax. No. (562) 926-6913, email: email@example.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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