TONER CO. WANT TO SAVE $1.7MIL IN 2006
TONER CO. WANT TO SAVE $1.7MIL IN 2006
2006-01-24 at 10:00:00 am #14006
Adsero Working to Achieve an Estimated $1.7 Million in 2006 Savings
MONTREAL, Jan. 2006 — Adsero Corp. (“Adsero”), a North American leader in the printer cartridge remanufacturing industry, is pleased to provide investors with a corporate update and highlight recent events.
“Recently, we announced the completion of the purchase of 328,500 treasury shares of Turbon AG (“Turbon”), bringing our total ownership in Turbon to 400,000 shares, equivalent to approximately 10% of the issued and outstanding stock of Turbon. The 10% transaction was financed through the sale by Adsero of a combination of debt securities to Turbon and equity securities to the largest individual shareholders, including senior management of both Adsero and Turbon. In the process, we also raised an additional $2.7 million, much of which was institutional and will be used to support our growth.
“Through a supply agreement with Turbon, Adsero has access to a long-term supply of finished goods with high quality, lower cost and a capacity which is much greater than our current overall capacity. This agreement gives us immediate access to state of the art lower cost manufacturing facilities which would have otherwise taken Adsero several years to build. We now have the capability to improve margins and increase market competitiveness to support our ongoing growth initiatives.
“These initiatives will allow Adsero to streamline its costs and today, we are pleased to announce that we are in the process of removing an estimated $1.7 million in annual operating costs out of our business. The savings result directly from a reduction in the workforce, through the elimination of duplicate functions under the supply agreement with Turbon, as well as from the closure of two of our facilities, a sorting center in Montreal, Canada, and a distribution center in Memphis, Tennessee, during the first quarter of 2006. In addition, we are able to reduce spending in other areas such as streamlining our process related to the collection of empty toner cartridges. A portion of these savings will be realized in the first quarter of 2006, with the remainder during the balance of 2006.
“We will continue to operate our manufacturing facility based in Montreal, Canada; however, as mentioned above, the manufacture of certain high volume items will be outsourced to Turbon facilities. We will continue to produce certain products which are more specialized or newer products in our plant.
“In conclusion, we have built a stronger foundation both financially and operationally, and we anticipate that we will be in a position to leverage the economies of scale that the Turbon relationship brings. We look forward to announcing updates on our plans for 2006 in the future,” stated Yvon Leveille, President and CEO of Adsero Corp.
About Turbon AG
Turbon AG (www.turbon.de), through its subsidiaries, develops, produces and distributes compatible imaging supplies for Laser, Inkjet, Dot Matrix and Thermal Transfer printers. Turbon operates production plants in Europe, Asia and the USA had revenues of approximately Euros 123 million for fiscal 2004.
About ADSERO Corp.
ADSERO Corp. , through its wholly owned subsidiary Teckn-O-Laser Global Company, is a North American leader in the printer cartridge remanufacturing industry. The company manufactures and distributes remanufactured toner cartridges and inkjet cartridges. These products are sold to a variety of channels such as distributors and retail office supply stores, both domestically and internationally.
Safe Harbor Statements
Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements, with words such as “anticipate,” “believe,” “expect,” “future,” “may,” “will,” “should,” “plan,” “projected,” “intend,” and similar expressions to identify forward-looking statements. These statements are based on the Company’s beliefs and the assumptions it made using information currently available to it. Because these statements reflect the Company’s current views concerning future events, these statements involve risks, uncertainties and assumptions. The actual results could differ materially from the results discussed in the forward-looking statements. In any event, undue reliance should not be placed on any forward-looking statements, which apply only as of the date of this press release. Accordingly, reference should be made to the Company’s periodic filings with the Securities and Exchange Commission.