SOURCE: Magla International LLC
February 17, 2011 11:24 ET
Magla Products, LLC Announces Reverse Merger and $1.46 Million Private Offering
MORRISTOWN, NJ--(Marketwire - February 17, 2011) - Magla Products, LLC (OTCBB: ADSO) ("MAGLA"), a company, through its wholly owned Magla International, LLC subsidiary, focused for over 50 years on nationally branded work-related gloves and household products for consumers across a number of trade classes, today announced the successful completion of a reverse merger (the "Merger") with Ads In Motion, Inc. ("AIM"), a Company with no current operations. AIM, now headquartered in Magla's Morristown facility, will continue the business of Magla products as a wholly-owned subsidiary under the leadership of the current management team, headed by Chairman and Chief Executive Officer, Jordan Glatt. In completing the Merger, AIM issued approximately 13.45 million shares of its common stock to the holders of Magla common stock, principally Mr. Glatt. The merged company was quoted on the OTCBB market under the symbol "ADSO," beginning on February 8, 2011.
Concurrent with the Merger, the Company completed a private placement of approximately $1.46 million to qualified accredited investors. The securities purchase agreement regarding the offering contained various other provisions including warrant issuance, and certain other rights of the purchasers all as more fully described in the 8K. Upon closing of the Merger and private placement, the Company has total shares outstanding of approximately 15,943,000 million. Net proceeds received from the sale of units are expected to be used for product development and sales, working capital and general corporate purposes.
"The positioning of Magla as a public company, together with the current capital raise should provide us with a substantially enhanced ability to take advantage of the expansion opportunities offered to us both in terms of product line and new markets. We are looking forward to continuing our leadership in our core businesses and to additionally create many new opportunities to utilize our brand recognition and extraordinary distribution channel to offer additional products that reflect the innovation and quality personified by Magla for over 50 years. We congratulate our employees for their hard work and dedication and welcome our new shareholders to the opportunities ahead," said Mr. Jordan Glatt.
About Magla International, LLC
The Company designs, arranges for manufacture, markets and distributes disposable, reusable, work-related gloves and related household products to consumers across a number of major classes of retail trade. Magla has been in the household products business for over 50 years and the glove business since the late 1970s. Since that time they have expanded into the reusable wipes and cloths category.
Our primary products include disposable and reusable consumer household gloves and work gloves. We offer more than forty different styles and designs and reusable and disposable household gloves and over one hundred forty different work gloves are useful for a variety of consumers.
The product lines are aligned with popular brands in order to connect retailer's demands for brands that are easily recognizable by consumers. In this regard, the Company entered into licensing arrangements with brands including the Stanley® trademark from Stanley Black & Decker (formerly, The Stanley Works). The license agreement provides the Company exclusive right to use the Stanley® name on a variety of work gloves. The Mr. Clean™ brand is licensed from The Proctor & Gamble Company for disposable and reusable household gloves and reusable wipes and clothes in the United States and Canada. The Company also entered in a licensing agreement with the Williamson Dickies Company for use of the Dickie's brand name for work gloves.
Safe Harbor Statement
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company's ability to sell additional shares of common stock and warrants to purchase common stock at additional closings, anticipated operating results; licensing arrangements; relationships with our customers; consumer demands; financial resources and condition; changes in revenues; changes in profitability, changes in accounting treatment; cost of sales; selling, general and administrative expenses; interest expense; the ability to secure materials and subcontractors; the ability to produce the liquidity or enter into agreements to acquire the capital necessary to continue our operations and take advantages of opportunities; legal proceedings and claims.