MN, U.S. – Rubber Research, Inc., a wholly owned subsidiary of Rubber Research Group, Limited (RRG) is pleased to announce the signing of a Letter of Intent with Hi-Tek Rubber, Inc. This letter confirms the intent of RRG to purchase 100% of the outstanding Hi-Tek common stock. RRG will exchange ordinary shares of RRG common stock in exchange for 100% of the issued and outstanding shares of Hi-Tek. The terms and conditions are outlined in an Equity Purchase Agreement to be completed, on approval of the board of directors of each company, on or before February 29, 2012.
RRG’s Werner Remmen and Hi-Tek Founder/President Gordon Cell agree that this is an excellent fit for both parties. “For our part,” said Mr. Remmen, “Hi-Tek has the capability and expertise to develop and support our ambitious plans for the manufacture and distribution of rubber based roofing products. Gordon is recognized as a pioneer in the industry and his experience, combined with RRG’s Tirecycle technology, will make a formidable team.”
“For us,” said Mr. Cell, “the ability to combine RRG’s environmentally friendly technologies with Hi-Tek’s manufacturing capacity will create a product that will be the clear leader in the industry. No other company will be able to match what we will be able to do.”
RRG is a corporation duly organized and validly existing under the laws of the British Virgin Islands and is in good standing under such laws. It acts as a holding company to purchase and operate subsidiary companies that operate in the rubber recycling industry. After the purchase Hi-Tek Rubber, Inc. will become a 100% owned subsidiary of RRG.
RRI, on the other hand. is another 100% owned subsidiary of RRG, and it has an exclusive licensing agreement with the holders of the intellectual property rights to Tirecycle, a patented manufacturing process used to recycle old rubber. Tirecycle products are unique compounding tools that can improve the cost/performance formula without the usual compromises associated with using ground rubber or inorganic fillers.
Together, the subsidiaries of RRG have developed processes unique in the world of rubber reuse and the result is better products than with the original rubber. The chemistry breakthrough allows for a major shift in the “GREEN” nature of rubber production. The beauty is that there is a significant cost savings as well as the environmental savings. The acceleration of Tirecycle will also mean the gradual clean-up of a world filled with enormous tire dump sites.
Source: San Francisco Chronicle