Business
Resin Systems announces exclusive supply agreement and business update
Resin Systems announces exclusive supply agreement and business update.
About this update from Real Estate Split Corp Class A
[{"type":"text","content":"\n\n\n\nCALGARY, Dec. 18 /CNW/ - Resin Systems Inc. (\"RS\") (RS - TSX / RSSYF -\nOTCBB), a composite products innovation company has entered into a multi-year\nexclusive supply agreement regarding its VRoll(TM) business division. The\nagreement is with a leading original equipment manufacturer and distributor\n(\"OEM\") of material handling systems and conveyor rollers to the mining\nindustry and to operators of bulk material handling systems worldwide.\nPursuant to this agreement, RS will sell its VRoll tubing to fulfill the terms\nof the OEM purchase orders made throughout the term of the agreement. RS's\nsupply of VRoll tubing will enable the completion and sale of the conveyor\nroller assemblies by the OEM to its customers.\n\n\nThrough this arrangement, RS and the OEM will begin launching VRoll\nbeginning in early 2007. VRoll, a large-diameter composite tube made using\nRS's proprietary Version(TM) resin system, is a stronger, lighter and more\ndurable alternative to the steel tubing currently used in roller assemblies\nfor these industrial sectors. The end user will experience lower overall\nreplacement costs from a more durable roller and energy savings from a\nsignificantly lighter roller.\n\n\nIn addition, RS is taking immediate steps to reduce its use of cash in\nbusiness operations by strategically repositioning its business focus. RS\nincurred significant cash expenditures throughout 2006 during the ramp up of\nproduction of its RStandard(TM) modular composite utility poles. While RS made\nmonth to month production improvements, ongoing production deficiencies\ncontinue to negatively impact RS's cash reserves. RS intends to host a web\ncast in mid-January 2007 to provide detailed information on its overall 2007\nstrategic business plan as well as more information on the VRoll business\nline.\n\n\nIn order to execute the 2007 business plan Paul Giannelia has been\nappointed Chief Executive Officer and President of RS and Greg Pendura has\nresigned as Chairman, Chief Executive Officer and President of RS. William\nDemcoe has also resigned from the board of directors. \"My optimism and\nenthusiasm in the future success of RS remains unwavering,\" states Greg\nPendura, \"but stakeholder concern over the length of time to deliver our game\nplan had to be addressed. I have total confidence that Paul Giannelia will\nsucces...