PET preform injection molder Ameriplas International Ltd. plans to become a public company through a reverse takeover by public shell company Cordova Industries Ltd. of Vancouver, British Columbia.
Ameriplas in Montreal will expand production as a result of the takeover, said Mike McIsaac, manager of corporate financing for Pacific Opportunity, a private merchant company and major shareholder of Cordova. Cordova is listed on the Toronto Stock Exchange's Venture Exchange.
Ameriplas' current capacity of 40 million preforms per year will rise to about 90 million when the company installs another injection molding press, its fourth, a reconditioned model purchased in the United States, McIsaac said in a telephone interview. By March the company will spend about C$1.5 million (US$950,000) on a new injection press to boost capacity by another 150 million to 200 million preforms a year.
Cordova's takeover of Ameriplas should be complete by mid-December if all approvals go as expected. Ameriplas will be Cordova's only operating company. McIsaac said the takeover is a quicker and less costly way of getting Ameriplas listed on the Venture Exchange than if Ameriplas itself were to go through the regulatory process.
Cordova agreed to pay about C$3.5 million (US$2.2 million) for Ameriplas, subject to regulatory approval.
After the deal, Ameriplas will relocate to a newer, leased facility in St. Jean, Quebec, near Montreal. Local incentives and proximity to a major, upcoming new customer are key reasons Ameriplas wants to move to St. Jean, McIsaac said.
Ameriplas was founded in 1997 and has been making preforms since late 1999. Current annual sales are about C$2 million (US$1.3 million), but growth will be rapid this year and next as new contracts come into effect, McIsaac said.
Cordova's future directors will include three plastics veterans. Clement Lussier, Ameriplas' founder and major shareholder, will become Cordova's chairman and chief executive officer. Francois Fournier, production and quality manager for Ameriplas, will become Cordova's president and chief operating officer. Andre Lussier, who is co-founder of Ameriplas and responsible for production planning and control, also will be a Cordova director.