Diamant Art Corporation Provides Corporate Development Update to Shareholders
Wednesday October 22, 9:58 am ET
TORONTO--(MARKET WIRE)--Oct 22, 2008 -- Diamant Art Corporation (OTC BB:DIAAF.OB - News) is pleased to announce through its wholly owned subsidiary, Bio-Plastics Film Inc., an update to our shareholders.
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In today's challenging and confusing financial times, perception, particularly in the stock market, creates reality. Unfortunately due in part to the financial instability on Wall Street and other global markets, our stock has recently endured an overwhelming amount of downward pressure. We are not alone in the challenges this situation presents to companies of all sizes.
To help alleviate uncertainties in regard to our company and its operations, we intend to keep our Shareholders informed. We want our investors to understand that despite the negative pressure in the stock market, Diamant's biodegradable products are continuously gaining acceptance in their market segments.
Diamant has recently delivered sizable shipments of millions of feet of the Company's biodegradable pallet wrap, and also announced that the Company has achieved substantial production capabilities boosting our ability to meet growing demand. Our production capacity will allow us to deliver enough of our proprietary BIO-PLAS additive to produce up to 25 billion grocery bags a year and enough additive for in excess of 120,000,000 PET bottles per year at this time.
The Company seeks to utilize this extensive level of inventory to participate in the paradigm shift guiding the direction of our ecological future. These factors considered, we would like to remain focused on the fact that regardless of the volatility of the financial markets, our vision remains fixed on the fact that our fundamentals improve daily.
Recently, progress has been made with a number of the companies that we have been marketing to over the past few months. We have started to experience an increase in interest in the various products that we distribute such as shrink and pallet wrap. Accordingly, we have numerous companies testing our products which are FDA compliant, and evaluating them for suitability. We have completed all but one evaluation that has been requested, and this process should be complete within the next few weeks. Upon completion, we foresee that a number of other potential clients will commence suitability testing for their own applications.
The following is an update of current activities and pending orders. The names of the companies mentioned can not be disclosed, because with each Diamant is bound by a confidentiality agreement at their own request.
1. Prospective clients include a sizable restaurant chain that is committed to going green. They are one of the few in the midst of testing the film, and we are awaiting a final report as to whether the film will be selected for use on their products.
2. Also in progress are negotiations with a Paper and Packaging wholesaler who has two clients that are placing orders for the pallet wrap. One of these clients, an ecologically conscious company, is expected to move forward with both the pallet and the shrink film.
3. The other potential client is testing the pallet wrap, followed by an evaluation of the cling film.
4. A Canadian water bottling company has also decided to test our shrink film. Evaluation will be in progress by the end of November 2009. They have already evaluated competitive bottles, and are dissatisfied with the lack of transparency and of the plastic used by in their product by other additives thus far. This company is also testing the Diamant Bio-Plas additive this quarter for their water bottles. Upon satisfactory completion of their evaluation, we could expect sizable regular orders.
5. Another major prospective client is one of World's largest beverage distributors. They have begun testing our shrink film, and the evaluation should commence in November 2008. Although we expect this company will likely require several levels of testing, it should yield regularly recurring orders once awarded.
6. Diamant representatives have also met with another major beverage company that has requested an immediate initiation of product testing. They have sent their specs, and we are currently in the process of forwarding samples for testing of our additive which is expected to commence right away.
7. Another large packaging company we are in negotiations with manufactures over 20 million water bottles annually. Additionally, this company produces bottles for major condiment vendors. Interest in the PET additive as well as our shrink film has been indicated and supplies are being shipped to begin testing right away.
8. Another company that we are working with currently represents packaging products on the West Coast. They have a number of representatives that are to begin representation of all our film products. Talks for representing the additive are also underway.
9. Another West Coast company who will soon begin representing the film has a customer base of approximately 900 clients. We anticipate that this will be a great source of business looking forward. They are also expecting to represent the additive sales.
While reasonable shareholders like you may have concerns regarding our stock price not reflecting our development, the reality remains that the industry revolving around the degradation of plastic will continue to evolve, as we are forced as a global community to become increasingly accountable.
In summary, we want to restore confidence for you, our financial partners and investors that as the demand continues to rise, we remain ready and able to deliver. Challenging times in the market have always passed, and our cutting edge young company will continue to mobilize toward the collective goals of materializing the rewards of your confidence, patience, and tolerance during these global financial adjustments. We want to reassure that our business plan and corporate direction remain optimistically on track.
Diamant Art Corporation (OTC BB:DIAAF.OB - News), through its wholly owned subsidiary Diamant Film Inc. (www.diamantfilm.com), is the world's first plasticizer-free and the first food wrap film that is environmentally friendly and recyclable. Diamant(TM) Film has recently received the ECO logo certified by the Environmental Choice(TM) Program. The Environmental Choice(TM) Program is North America's leading benchmark of environmentally responsible products and services.
Bio-Plastics Film Inc. Diamant's Bio-Products contain Totally Degradable Plastic Additive. Unlike other plastic, once biodegrading is complete, all that remains is carbon dioxide, water and biomass, all of which are part of the normal bio-cycle.
Safe Harbor Act: This release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 6-K or 20F and other filings made by such company with the SEC. Further Diamant Art Corporation and its wholly owned subsidiaries, Diamant Film Inc. and Bio-Plastics Film Inc. do not condone or participate in spam activities, e-mail and fax programs of any manner.
Contact: For more information visit our FILM division website of Diamant Art Corporation at http://www.diamantfilm.com or contact Investor Relations: Gibraltan Financial (407) 834-9777
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