*NEWS*TONER CO.WANT TO SAVE $1.7MIL IN 06
*NEWS*TONER CO.WANT TO SAVE $1.7MIL IN 06
2006-01-24 at 10:01:00 am #13876
Adsero Working to Achieve an Estimated $1.7 Million in 2006 Savings
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.
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.
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
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
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.