MONTREAL, March 7, 2007 (PRIME NEWSWIRE) -- ADSERO Corp. (Pink Sheets:ADSO) an Eco-Responsible Holding Company and a North American marketing and distributor of re-manufactured printer cartridges, today provides an update on the Company and its plans moving forward.
The past 12 months have seen substantial changes for the Company. Based on changing market conditions resulting from discounted pricing pressures due to offshore production and a strengthening Canadian dollar, we have undergone the following changes in order to re-position the Company for the future:
Production Changes/Business Direct Model
-- In June 2006, we announced the closing of our production
facilities in Quebec, and the complete outsourcing of products to
Turbon AG, one of the world's largest re-manufacturers of laser
printer cartridges. We entered into a 10-year supply agreement
which provides us access to high quality, low-cost manufacturing
in order to service our customers going forward.
-- We have reduced our employees from over 140 to less than 20.
-- A new strategic aggressive focus on a business direct model
where we can operate on higher margins. At present we service
close to 3,000 accounts on a direct basis and seek to grow this
aggressively throughout North America. Also, substantial changes
in the retail market (Staples delisting HP compatible cartridges)
further enhances the opportunity in our Business direct model
Debt Reduction
-- During August 2006, we sold a number of larger, low margin,
commodity customers in the USA, which were probably going to be
lost due to pricing issues.
-- During August 2006, we filed for protection from creditors within
our Canadian subsidiary, Tecknolaser Company. This was
necessitated in order to allow us to properly restructure the
business in an orderly fashion. We worked with our two senior
secured creditors (National Bank and Heath Bank) through this
process. The National Bank was paid off in full during September
2006. On February 3, 2007, we successfully negotiated with Heath
Bank, who was the senior secured lender, to purchase the assets
through one of our wholly owned subsidiaries (Tecknolaser
Services), to continue the business without any interruption.
Currently Heath Bank is owed approximately $1.6 million, as the
only remaining senior lender. The Company is presently actively
negotiating with various financial parties to restructure the
remaining debt and establish a new working capital facility for
our aggressive growth strategy.
-- During September 2006, we negotiated the return of our investment
in Turbon shares (400,000 shares of Turbon AG) to Turbon in
exchange for the elimination, in full, of any and all debts
outstanding with Turbon at that time.
-- In November 2006, the issue related to one of our old
subsidiaries was closed, therefore allowing for the removal of
$2.1 million in liabilities from our balance sheet.
-- During the fall of 2006 we converted an additional $2.9 million
in existing debt into equity.
-- Through this aggressive restructuring, we have strengthened our
balance sheet by eliminating approximately $15 million of debt.
The Future
-- We are in the process of completing an acquisition based in
Austin Texas, which will compliment our present business model
and strengthen our foundation, as well as providing additional
senior management strength
"With a stronger balance sheet and a streamlined business structure, we now are uniquely positioned to capitalize on the business direct market. We will seek to grow this base aggressively in 2007 by extending our offering with business solutions which are based on 'green office' products and programs as ADSERO seeks to become a leader in establishing Eco-Intelligent products and services to business's in North America. I look forward to announcing the acquisition along with the other initiatives the Company is presently working on to make 2007 a successful and profitable year," stated Yvon Leveille CEO of ADSERO Corp.
About ADSERO Corp.
ADSERO Corp. (http://www.adserocorp.com), through its wholly owned subsidiaries, is a North American marketer and distributor of printer cartridges. Products are sold to a variety of channels such as directly to end consumers as well as dealers.
The ADSERO Corp. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2199
Safe Harbor Statements
Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements, with words such as "anticipate," "believe," "expect," "future," "may," "will," "should," "plan," "projected," "intend," and similar expressions to identify forward-looking statements. These statements are based on the Company's beliefs and the assumptions it made using information currently available to it. Because these statements reflect the Company's current views concerning future events, these statements involve risks, uncertainties and assumptions. The actual results could differ materially from the results discussed in the forward-looking statements. In any event, undue reliance should not be placed on any forward-looking statements, which apply only as of the date of this press release. Accordingly, reference should be made to the Company's periodic filings with the Securities and Exchange Commission.