Komet Resources, Inc. (TSXV:AQD)
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MONTREAL, March 31 /CNW/ --
The Company has realigned its strategic direction to focus on the marketing
and distribution of bathroom vanity products and kitchen cabinets
MONTREAL, March 31 /CNW Telbec/ - Komet Manufacturers Inc., "Komet"
(TSXV: AQD), today announced the sale of all of its manufacturing
equipment to a specialized kitchen manufacturer for $350,000. The sale
agreement was signed on March 15 and is conditional on the latter
securing $350,000 in financing before May 1, 2011.
When filing Komet's financial statements for December 31, 2010, senior
management indicated that the Company had suffered a significant
reduction in sales following the loss of their biggest client. Despite
efforts to develop new products (bathroom vanity furniture) and a new
product line (kitchen cabinets), the Company has not been able to
compensate for the significant drop in sales.
Following this drop in sales over last two quarters, Komet carried out a
review of its strategic direction and made the decision to streamline
its manufacturing operations in order to remain competitive. To this
end, the Company will now rely on a manufacturing subcontractor and
cease all production activities as of Friday, April 29, 2011. The
subcontracting agreement, which includes the sale of Komet equipment to
the subcontractor, was signed with the objective of benefiting from the
expertise of a manufacturing specialist in bathroom vanity products and
kitchen cabinets. The Company will now focus solely on the distribution
and marketing of these products to establish a clear path to
profitability and further develop the market.
Production staff was notified on March 21 of final layoffs, which take
effect at the end of April in line with the cessation of all production
activities.
About Komet
Komet, a Quebec corporation headquartered in Blainville, has been listed
on the TSX Venture Exchange since June 2007. The Company specializes in
designing and manufacturing bathroom furniture products, which are
marketed under the Aquadis brand name. The company also manufactures
kitchen cabinets for builders and consumers.
The TSX Venture Exchange has not approved this press release and does
not accept responsibility for the authenticity or accuracy of the
information contained in the release.
To view this news release in HTML formatting, please use the following URL: http://www.cnw.ca/en/releases/archive/March2011/31/c8145.html
p Msupe/sup Frédéric Bérardbr/ Special Advisorbr/ HKDP Communications and public affairsbr/ (514) 395-0375 extension 259br/ a href="mailto:fberard@hkdp.qc.ca"fberard@hkdp.qc.ca/a /p