We are very pleased with the level of cooperation the Company has received from the City of Kingston in allowing a complete investigation to take place. We are confident that with the strong worldwide demand for nylon, this project will be rewarding to our shareholders and to the citizens of Kingston."
The Company further wishes to announce that due to unforeseen circumstances it was not able to complete the Joint Venture Agreement with Fando Holding (Canada) Ltd. (Fando), which was announced on August 6, 2007. Under this agreement, the Company, as a Joint Venture partner with Fando, had the financial obligation to clean and sell the nylon in Asia from the McKendry Landfill Site, located in Kingston, Ontario and split the profits accordingly.
Efforts to have the nylon shipped and cleaned in North Korea proved to be very difficult due to governmental policy and lack of technical knowledge in that country. Fando has sold the McKendry Landfill Site to an Asian buyer for $600,000 USD, who will be shipping the nylon F.O.B. from Kingston to Asia.
The Company was instrumental in negotiating this sale and will be receiving $150,000 USD from the total proceeds. In addition, as the result of the Company's involvement with the new owner of Fando, the Company is currently negotiating a new fee based contract to assist the new owner in cleaning and selling this nylon in Asia.
The Company has also commenced a legal action against its former President, CEO and Chairman of the Board, Mr. Thomas Lam, alleging breach of his contractual, fiduciary, statutory and common law duties with the Company while holding these positions. The Company is claiming general, pecuniary, aggravated and punitive damages in the total amount of $5.8 million.
Poly-Pacific is an innovator in eco-friendly solutions to industrial waste by-products. The company is actively pursuing the reclamation of industrial polymer fibre throughout North American landfill sites.
Poly-Pacific International Inc
marketing@alchempro.com
