LOS ANGELES, CA -- (MARKET WIRE) -- 04/23/08 -- Lilo Beuzieron, Chairman, CEO and CTO of Barotex Technology Corporation (PINKSHEETS: BARX), issues a letter to the shareholders.
I would like to personally thank our valued shareholders and investors for their ongoing support over the last 6 months during which Barotex Technology, Inc. was re-organized as an OTC trading company, Barotex Technology Corporation (BTC) listed as BARX. Additionally, I wanted to take this opportunity to provide a brief background of the reorganization and finally, I am very excited to share our vision for the future and the steps being taken to turn that vision into reality.
To recap some of the events of the past few months, on December 12, 2007, FutureVest, Inc. officially acquired 100% of Barotex Technology, Inc. from Zicron Corporation and effected a complete re-organization into a new post consolidated entity called Barotex Technology Corporation. At the same time, FutureVest Group, Inc. was spun out to FutureVest shareholders to accommodate the existing FutureVest Investment Portfolio and leave BTC as a completely independent company.
The rationale behind this acquisition is simple; it facilitates access to capital markets where the company can garner the necessary investor attention and capital requisite to ensure the continued growth of Barotex.
On January 30, 2008, I was appointed Barotex Technology Corporation Chairman, CEO and CTO and today I focus on the continued development of the company as we commercialize our highly disruptive technology of pulling inorganic fibers from volcanic rock under the terms of our Worldwide Patents.
To create sustainable shareholder and social value through the innovation of our paradigm shifting technology that will redefine the world we live in with the products that are made from Barotex. In order to make our vision a reality, I am now focused on the following major objectives:
Key Corporate Goals:
CEO: At this time, I am currently looking for a permanent CEO who will assume all day-to-day corporate and operational activities. I strongly feel that my continued role as Chairman and CTO will allow me to remain focused on the necessary development of the Barotex suite of Intellectual Properties and advanced fiber development and production technology. As we move forward it is important to me to have an experienced CEO who can work closely with me and assume the lead role in the corporate development of our business, which is essential to our overall vision.
Management: I will also look to fill other key management roles as we move forward. In the coming months we intend to search out a President of Operations and a high level CFO, which will round out our corporate Management team.
Investment Banking Services: It is one of my immediate goals to retain an investment banking firm that will advise our company through the various fundraising efforts we intend to accomplish as we move toward the future.
New Capitalization: I would like the company to complete our first public round of capital funding, which will be utilized to launch our first Barotex factory and related operations for the next 12 months. The company has already received initial commitments for a portion of this round of funding and anticipates closing the round in the next 90 days.
Corporate Website: I am working on launching the new Barotex corporate website which will be located at www.BarotexTechnology.com. We will also be publishing a monthly newsletter.
Audits and SEC Filings: We are working on completion of our PCAOB audits, which we anticipate to be completed in the next 45 days and the company will then file its 10KSB with the SEC. Once this is effective, the company will be a 12G fully reporting public company. This will allow it to prepare for a Major Exchange Listing of its common stock.
Major Exchange Listing: Management is reviewing all options to potentially list its common shares on a major global stock exchange within the next 12-18 months. We will look at the NASDAQ, AMEX and AIM as possible exchanges. Listing on these exchanges will give BTC access to the requisite level of capitalization to facilitate our growth as we work toward gaining market share by establishing Barotex fibers as the specialty material of choice.
Key Operational Goals:
Opening of First Barotex Production Facility: We are currently readying our West Virginia production facility to be fully operational and capable of producing limited commercial quantities of the Barotex fibers by the end of Q3, 2008. Additionally, by the 2008 year end we plan to have installed and fully operational, several additional production lines to increase our overall production capacity in an effort to meet the demand for the fibers. The plant has been configured in a manner that will allow for easy installation of additional production equipment as demand dictates.
Completion of FAA Testing: We are nearing completion of FAA testing and are awaiting approval for the commercial release of our proprietary protective aerospace panels that are designed for use in both commercial and military aerospace industries.
Finalize Initial Delivery Contracts: The company currently is experiencing strong global interest for Barotex with several initial letters of interest to purchase the first full production run of Barotex fibers. Management is currently working on finalizing the contracts associated with these Letters of Interest.
Market Development: Barotex has a wide range of applications. Consequently, management has targeted the following markets to attack: Aerospace, Transportation, Recreational, Electric, Architectural, Ballistics, Protective, Industrial, Marine, Wind Energy, and many more. In order to help develop these markets our dedicated R&D team is busy designing a wide array of prototype products and parts ranging from brakes, ballistics, pipes, and surfboards all made out of Barotex Fibers and Materials.
Value Creation Through IP Development: The Company is continuing to build shareholder value by aggressively pursuing new patent applications for advanced fiber technologies and processes to compliment our existing suite of intellectual property.
Barotex Technology Corporation -- Today
Barotex Technology Corporation is an innovator of specialty fiber technologies, which can be deployed in a wide range of market sectors. Barotex specialty fibers are being positioned to replace composite/specialty materials in specific areas and applications.
Our principal product, inorganic fibers trademarked as Barotex®, are made from mineral rocks of volcanic origin found in mines located through out the U.S. and many foreign countries through a process that is environmentally safe and non-toxic. Because Barotex is of volcanic origin as opposed to being petrochemical based, Barotex will not be subject to the current and future crisis of diminishing resources and the volatile and exponentially increasing cost of petroleum.
The Barotex® fiber products satisfy the market demand in the global marketplace for a product whose characteristics are in many ways and applications superior to such products as Kevlar, carbon fiber, fiberglass, etc. with application to Aerospace, Transportation, Recreational, Electrical, Architectural, Ballistic, Protective, Industrial, etc. industries. Additionally, the heat-resistant qualities of Barotex® make it extremely desirable for use in products exposed to high heat. Its ballistic resistant qualities have the individual and vehicle protective industry very excited and its vibration-resistant qualities open the door for a multitude of uses the in automotive, aircraft/aerospace and recreational markets. The base fibers combined with carbon or ceramic fibers and/or various metals have been developed into new hybrid materials and technologies to open a new page in the 21st Century composite material science. The fibers in a non-woven configuration provide a high-heat resistant, sound deadening quality that also has many applications.
Barotex® woven materials or fibers have special properties that reduce the cost of products while improving their performance. In thermal conductivity, they are three times as efficient as those made of asbestos, and superior to glass and mineral fibers. The application temperature of articles made of Barotex® fibers is strikingly higher (from -200°F to 1400°F). In physical properties with their high Tensile and Impact strength they exceed mineral and glass fibers considerably. Due to the elasticity of their micro- and macrostructure, they are vibration-resistant compared to similar products. In chemical properties they offer a superb resistance to extreme temperatures and aggressive environments i.e. acids and alkalis and they do not accumulate radiation after exposure. In Dielectric properties, in particular volume resistance, they are 1 to 2 orders of magnitude higher than those of fiberglass. When compared with glass plastics and other woven materials, such properties make the application of Barotex® composites irreplaceable in a wide variety of construction and manufacturing of products such as: car bodies, yachts, launches, aircraft parts, automotive parts, chemical apparatus, tubular products, insulation, special coatings, ballistic resistant blankets, etc. Examples of the types of weaves can be found below.
A Robust Suite of Intellectual Property
Barotex holds a perpetual exclusive license for process patent 7,223,708 that describes the process of creating the Barotex fibers and other related materials. The Company also has an agreement in place to permanently assign the patent and all related rights to the Company. Full IP assignment to BTC will happen upon the successful funding of $5,000,000. Additionally, Barotex owns a suite of other intellectual property including registered trademarks and copyrights.
Products Barotex Specialty Fibers Can Be Used To Make
The Barotex fibers can be woven into a multitude of specialty weaves with each weave designed to fit the needs of a specific use; they can be pulled into a spun configuration that works for insulation, sound deadening material, etc.; it can be produced in a 'chopped' form for special forming requirements; it can be filament wound for various applications and it can be woven into various fabric designs. Barotex® is truly a highly versatile material with thousands of uses which include, but are not limited to products such as: auto parts, boat parts, pipes, ballistic vests, protective armor, aviation parts, surfboards, skis, tennis racquets, etc. -- the list is virtually limitless!
Global Market Opportunities
The global composite/specialty materials market is dynamic and vibrant with an annual market of $20 Billion and consumption projected to increase to 4.9 billion pounds 2009.
In order to gain market penetration, the company has identified markets that have a significant and historical usage of composite/specialty materials. Specifically, BTC has targeted the following market verticals to attack: Aerospace, Defense/Ballistics, Automotive, Maritime, and Recreational Sporting Goods. Additional market verticals will be addressed as the company increases its capacity.
In summary, I believe that Barotex is poised to embark on a bold new journey toward redefining the composite/specialty materials industry, earning market share, and establishing Barotex Specialty Fibers as an industry standard.
Warm Regards, Lilo Beuzieron Barotex Technology Corporation Chairman, CEO and CTO
For continued information on our company please refer to our website at www.BarotexTechnology.com where you can also register to receive our monthly electronic newsletter.
About Barotex Technology Corporation
As an innovative specialty fiber company, Barotex Technology Corporation has developed fibers that represent a truly disruptive and paradigm shifting technology with broad based application across many market sectors that will redefine the way the world views and utilizes composite type and/or specialty materials. For many applications Barotex can efficiently and cost effectively replace the reigning composite material industry leaders such as glass and mineral fibers (fiberglass, carbon fiber, Kevlar, etc.) or Barotex can be combined with these composite materials to produce stronger, lighter, lower cost products.
This press release may contain forward-looking statements. Any statements that express or involve discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical facts may be forward-looking statements. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made to involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated.
Investor / Media Contacts
Garrett K. Krause
Tel. (310) 451-7400
Fax (310) 919-3116