Editions   North America | Europe | Magazine


Invesprint Sells Its 65% Interest In Jay Packaging Group

Press release from the issuing company

June 12, 2003 -- Invesprint Corporation announced today that it has sold its 65% interest in Jay Packaging Group, Inc. Jay is repurchasing, for cancellation, the shares owned by Invesprint. Senior management of Jay, who prior to the sale owned 35% of Jay, will now own 100% of the issued capital stock of Jay. The proceeds from the sale are US$3,800,000 with US$3,500,000 paid on closing and US$300,000 payable over the next year in equal monthly installments. A portion of the proceeds will be used to retire Invesprint's remaining bank debt of CDN$1,500,000. "The sale of our 65% interest in Jay will enable Invesprint to concentrate on its high-end label business," said Tony Wong, President and Chief Executive Officer. "In the past three months, we have also taken additional steps to improve our financial position and focus our energies on the label businesses. On March 28, 2003, the Company's Jonergin Division completed capital lease financing of CDN$1,400,000 for recently acquired equipment. In early April 2003 we completed a transaction which terminated our lease obligations on an unused manufacturing facility in Mississauga, thereby eliminating annual ongoing costs of CDN$500,000. On April 30, 2003, we sold our 50.1% interest in Kree Technologies Inc. to our minority partner. We have invested approximately CDN$18,000,000 in our label businesses over the past three years and have the technology, equipment and capacity to be a leading label supplier to the industries we now serve, namely wine & spirits, pharmaceutical, healthcare and petrochemical."