The combined manufacturing capacity now means that the IBC will be able to compete for much larger and longer term contracts.
Vancouver, BC (Vocus) March 31, 2010
IBC Advanced Alloys Corp. (TSX.V:IB) ("IBC" or the “Company”) has successfully completed the acquisition of Beralcast Corporation. With this rare metal matrix acquisition, IBC adds new manufacturing depth and expands its product portfolio to increase market presence and facilitate growth.
Beralcast Corporation is a private Nashua, New Hampshire-based specialty metal matrix manufacturing business that owns proprietary and patented technology for a castable beryllium aluminum metal matrix, Beralcast®, that is currently used in a wide variety of aerospace and advanced technology applications. IBC has also acquired manufacturing know-how and equipment, trade rights, marketing and supply agreements and has retained certain key personnel. The acquisition, previously announced in October 2009 and February 2010, is an arm's length transaction.
IBC, through its wholly owned subsidiary IBC US Holdings, Inc. acquired all of the shares of Beralcast Corporation from two individuals. The purchase consideration was US$2,250,000 in cash and 13,261,176 common shares of IBC ("IB Shares"). Pursuant to the policies of the TSX Venture Exchange, the IB Shares issuable will be subject to a hold period of four months and one day from the date on which they are issued. No finder's fee was payable in connection with the acquisition.
Anthony Dutton, President and CEO of IBC, commented Monday, "The Beralcast Corporation acquisition is both an important milestone for IBC and critical to IBC’s strategy of becoming a vertically integrated global supplier of rare metals and advanced alloys. Beralcast Corporation has an outstanding client base with a US Military Handbook (“MIL-HDBK-5”) approved product for advanced aerospace applications. We look forward to working closely with the Beralcast team, and their new and existing customers to grow this tremendously exciting opportunity,” continued Dutton, “The combined manufacturing capacity now means that the IBC will be able to compete for much larger and longer term contracts.”
The Beralcast® family of metal matrices can be used in virtually any commercial and military application requiring complex, lightweight, or high-stiffness parts. In general, they serve as a higher performance or lower cost replacement materials for cast aluminum, magnesium, titanium, metal matrix composites, non-metallic composites, and pure beryllium or powder metallurgy beryllium-aluminum. Some of the varied applications include disk drive armatures, automotive braking and structural components, advanced cycling rims and aerospace and satellite system components.
Beralcast® alloys are more than three times stiffer than aluminum with 22% less weight and can be precision-cast to simple and complex configurations. This material is very lightweight with a high modulus of elasticity and can be precision cast for three-dimensional stability. Beralcast® is ideally suited for certain demanding semiconductor manufacturing equipment, computer components and other commercial and aerospace applications and allows for a near-net shape to be cast for maximum manufacturing efficiencies.
Binary beryllium aluminum composites were developed by an American corporation, which was originally a metallurgical laboratory affiliated with the Massachusetts Institute of Technology, in cooperation with Lockheed Martin. Beralcast Corporation owns the intellectual property relating to the more advanced development of this technology, which is a proprietary and patented castable metal matrix composite beryllium aluminum alloy now manufactured as Beralcast® which no one, to the best of IBC’s knowledge and inquiry, has been able to duplicate commercially.
About IBC Advanced Alloys Corp.
IBC is an integrated manufacturer and distributor of rare metals (beryllium) based alloys and related products serving a variety of industries including nuclear energy, automotive, telecommunications and a range of industrial applications. IBC has 65 employees and is headquartered in Vancouver, Canada with production facilities in Pennsylvania, Indiana and Missouri. Additionally, IBC owns prospective beryllium properties in the Western US and Brazil covering approximately 9,500 hectares. IBC is creating a dynamic global beryllium and advanced alloys company. IBC’s common shares are traded on the TSX Venture Exchange under the symbol “IB”.
For additional information please contact:
IBC Advanced Alloys Corp.
Ian Tootill, Director of Corporate Communications
(604) 685-6263 ext 110
This news release was prepared by management of IBC, which takes full responsibility for its contents. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Legal Notice Regarding Forward Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Statements in this news release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among others, the expectations and/or claims, as applicable, that: (i) IBC is creating a dynamic global beryllium and advanced alloys company (ii) IBC is undertaking global growth initiatives, (iii) IBC will work closely with the Beralcast team and its new and existing customers; (iv) IBC will be able to grow this opportunity; and (v) IBC will be able to compete for much larger and longer term contracts.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: (i) the risk that IBC does not execute its business plan; (ii) the inability of IBC to keep pace with market requirements; (iii) IBC's inability to maintain key relationships with suppliers and customers; (iv) IBC not being able to retain key employees; (v) competitors providing better or cheaper products; (vi) markets for IBC's products not developing as expected; (vii) IBC's inability to finance its operations or growth; (viii) inability to obtain all necessary government and regulatory approvals; and (ix) the inability to effectively market IBC's products, including the establishment of viable relationships with third parties; (x) fluctuating beryllium prices may negatively impact IBC’s business plans and strategies; and (xi) unforeseen difficulties in integrating Beralcast Corporation into IBC. These forward-looking statements are made as of the date of this news release and IBC assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements except as required by law. Although IBC believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations, or intentions will prove to be accurate.