Ventura, California, USA, 31 March 2011 -- (Marketwire) -- SGD Holdings, Ltd. (Pinksheets:SGDH - News), parent company of environmentally friendly paper products manufacturer EcoPaper, Inc., today announced that the company on 08 March 2011, entered into an agreement with Aclor, Inc., in which SGD Holdings will become a primary supplier of raw materials for Aclor brands. Aclor, Inc. has submitted a purchase order to EcoPaper, Inc. in the amount of USD 10 million worth of raw paper materials. The order is anticipated to be fulfilled and delivered no later than 31 August 2011.
Aclor, a privately held U.S. stationery and paper products manufacturer and distributor, is also entering into an equipment leasing agreement with SGD Holdings to expand its own current manufacturing volume.
EcoPaper is also in the process of securing financing for the purchase of more than USD 2 million of additional manufacturing equipment to assist with and enhance order fulfillment, and increase the viability of leaseback options to Aclor.
A letter of intent for SGD Holdings to acquire the assets and intellectual property of Aclor was signed in November 2010, with an expiration date of 28 February 2011. With an innovative and mutually beneficial solution in place and expiration of the letter of intent imminent, SGD Holdings has opted not to continue pursuit of the acquisition of Aclor's assets and intellectual property.
"We always keep a keen eye on maximizing shareholder value, and this option is the wisest for all parties involved," said Harry Johansing, CEO of SGD Holdings, Ltd. "In the pursuit of acquiring Aclor, we recognized that the only available financing methods would dilute the company's stock. It makes more sense for both companies to pursue other mutually beneficial options, such as this USD 10 million order, that leverage our joint strengths and increase our global reach. We're excited about the new technologies and methodologies our new equipment will provide, and this alternative agreement enhances our strategic plans for growth to the mutual benefit of SGD Holdings, its stockholders and investors, and to Aclor as well."
Aclor, Inc. is currently based in Atlanta, Georgia, with manufacturing plants and sales and distribution facilities located in Laredo, Texas, and Mexico.
About SGD Holdings, LTD.
SGD Holdings, LTD. (Pinksheets:SGDH - News) is a holding company that and operates through its wholly-owned subsidiary, EcoPaper, Inc. (http://www.ecopaper.com.). Through internal research and development, and through acquisition, the company aspires to create and acquire new technologies, products, and methodologies that have the potential to positively affect the environment. For more information regarding SGD Holdings, Ltd. e-mail email@example.com.
About EcoPaper, Inc.
After developing an innovative and an economically feasible option for removing a portion of the more than 230,000 tons of agroindustrial waste generated annually by Costa Rica alone, EcoPaper, Inc., became among the first companies worldwide to create and implement processes for manufacturing and bringing to market tree-free, ecofriendly, beautiful, sustainable paper products of superior quality created from exotic tropical fibers. Founded by Harry Johansing, EcoPaper is proud that every sheet of EcoPaper product is smooth, acid-free, durable, chemical-free, and caringly manufactured. For more information regarding EcoPaper, Inc. visit www.EcoPaper.com or firstname.lastname@example.org.