ELKHART, IN, Sept. 11, 2017 /CNW/ - TekModo Industries Inc.(TSX-V: TEK) ("TekModo" or the "Company") provides the following operational and corporate update:
GRP Line
The Company is continuing to refine production runs on the GRP manufacturing line, which has now successfully produced initial small-scale SpectraLiteTM samples. Full commissioning of the GRP manufacturing line has been delayed and commercialization was not achieved by August 2017 as anticipated. The delay is a result of hardware and control system modifications that were identified in the commissioning process. TekModo now expects client evaluations to occur in late November 2017. If product testing is successful, then commercial sales of SpectraLiteTM are expected in Q1, 2018.
In order to achieve these objectives TekModo is pleased to announce that Edward Sepulveda has been hired as Vice President of Manufacturing. Mr. Sepulveda has sixteen years of experience as a senior manager, responsible for developing and producing advanced composite products in the defense and aerospace industries. He has received numerous industry awards for his contributions to product innovation within the composites industry. He holds a Bachelor's degree in Mechanical Engineering from Villanova University with a concentration in Advance Materials and Program Management.
Mr. Sepulveda's first priority will be to produce SpectraLite samples for client testing followed by bringing the product line to full commercialization.
Large Laminator
As reported in the Company's May 10, 2017 news release, TekModo has upgraded and optimized the large laminator resulting in improved product quality, tighter tolerances and increased throughput speed. As a result of these upgrades, the laminator has operated without interruption since the May 10 announcement.
Other Operational News
- The Roll Coater remains operational and demand continues to be strong for products.
- The Lightweight Foam Panel System samples are being produced and tested by several clients.
- The Shear Line has been delivered, but has not yet been installed.
Marc LaCounte, President of TekModo, commented: "We have faced some challenges with achieving our timelines and are working hard with our team to complete the GRP line and commercialize SpectraLite. We are now focusing on increasing our sales and marketing efforts. In order to achieve this objective, TekModo is expanding its internal and external sales force to market its current and upcoming product lines. The Company continues to develop disruptive composite technologies and several new product introductions are scheduled for the balance of the year."
Share Consolidation
The Company's board of directors has approved a share consolidation on the basis of one new common share for every existing four common shares. After the consolidation, the Company will have approximately 29 million common shares issued and outstanding and Class B Exchangeable shares of TekModo Holdings Inc. exchangeable into approximately 3 million common shares of the Company.
Approximately 68 million warrants granted in connection with the recent rights offering will be consolidated into 17 million warrants exercisable at a price of $0.25. An additional approximate 10 million warrants and stock options will be consolidated into approximately 2.5 million warrants and stock options exercisable at prices ranging from $1.50 to $4.72.