Tarpon Industries Announces Acquisition of Haines Road Real
Estate
MARYSVILLE, Mich., May 23 /PRNewswire-FirstCall/ -- Tarpon Industries, Inc. ("Tarpon" or "the Company") (AMEX:TPO), a manufacturer and distributor of
structural and mechanical steel tubing and steel storage rack systems, today
announced the completion of the purchase, by Steelbank Tubular, Inc. ("Steelbank Tubular"), a subsidiary of the Company, of the real estate property
on which the Company's Haines Road facility operates ("Haines Road Facility"),
from Bolton Steel Tube Co. Ltd. for approximately $4,600,000. The Haines Road
Facility includes approximately 12.3 acres of land and approximately 100,000
square feet of manufacturing and office space in Mississauga, Ontario, Canada,
a suburb of Toronto. Steelbank Tubular had leased the facility for a monthly
rent of approximately $59,000 a month, excluding occupancy costs from the
consummation of the acquisition of the business of Haines Road in February 2005
to date.
The purchase of the Haines Road Facility by Steelbank Tubular was financed with
an approximately $2,800,000 mortgage, approximately $1,300,000 in seller
promissory notes and cash proceeds from the Company's initial public offering
of its common shares, completed in February, 2005.
"By consolidating our Canadian operations at the Haines Road Facility and by
subletting the former facility of Steelbank, Inc. ('Steelbank'), we would
expect to reduce our monthly expenses by approximately $35,000," states J. Peter Farquhar, Chairman of the Board and Chief Executive Officer of Tarpon. "As a result, we believe the closing on the purchase of the Haines Road
Facility is an important step in our overall integration process and is just
one of several productive measures we're taking to enhance Tarpon's overall
profitability." About Tarpon Industries, Inc.
Tarpon Industries, Inc., through its wholly owned subsidiaries, manufactures
and sells structural and mechanical steel tubing and engineered steel storage
rack systems.
Forward-Looking Statements Certain statements made by Tarpon in this presentation and other periodic oral
and written statements, including filings with the Securities and Exchange
Commission, are "forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements, as
well as statements which address operating performance, events or developments
that we believe or expect to occur in the future, including those that discuss
strategies, goals, outlook or other non-historical matters, or which relate to
future sales or earnings expectations, cost savings, awarded sales, volume
growth, earnings or a general belief in our expectations of future operating
results, are forward-looking statements. The forward- looking statements are
made on the basis of management's assumptions and estimations. As a result,
there can be no guarantee or assurance that these assumptions and expectations
will in fact occur. The forward-looking statements are subject to risks and
uncertainties that may cause actual results to materially differ from those
contained in the statements. Some, but not all of the risks, include our
ability to obtain future sales, our ability to successfully integrate
acquisitions, changes in worldwide economic and political conditions, including
adverse effects from terrorism or related hostilities including increased
costs, reduced production or other factors, costs related to legal and
administrative matters, foreign currency fluctuations, our ability to realize
cost savings expected, inefficiencies related to production that are greater
than anticipated, changes in technology and technological risks, increased fuel
costs, increased steel costs as it relates to our selling price, work stoppages
and strikes at our facilities and that of our customers, the presence of
downturns in customer markets where the Company's goods and services are sold,
financial and business downturns of our customers or vendors, and other
factors, uncertainties, challenges, and risks detailed in Tarpon's public
filings with the Securities and Exchange Commission. Tarpon does not intend or
undertake any obligation to update any forward-looking statements. DATASOURCE: Tarpon Industries, Inc.
CONTACT: J. Peter Farquhar, Chairman of the Board and Chief Executive Officer of Tarpon Industries, Inc., +1-810-364-7421, ext. 207 Web site: http://www.tarponind.com/
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