AMS Health Sciences, Inc. Announces Disposition of Heartland Cup
20 November 2006 - 5:27PM
Business Wire
AMS Health Sciences, Inc. (AMEX:AMM) announced the execution of
certain lease and purchase agreements between Heartland Cup Inc.
and Republic Plastics Ltd. (collectively, the �Agreements�).
Republic Plastics is located in McQueeney, Texas and produces
Styrofoam products for private label users. The transaction will
permit Republic to take over operation of the Heartland plant
immediately. Pursuant to the Agreements, and effective November 15,
2006, Republic Plastics assumed the existing lease for the
Heartland plant, purchased all remaining cup contracts with
Heartland customers, and executed a two-year equipment lease. The
equipment lease includes an option in favor of Republic Plastics to
purchase all the equipment utilized in the Heartland operations at
a specified price. The option period begins November 15, 2007 and
ends November 15, 2008. By execution of the Agreements, AMS will
receive a cash benefit of approximately $33,000 per month resulting
from the assumption of the plant lease and the rental payments
under the equipment lease. This cash benefit will offset AMS�
monthly out-of-pocket costs and debt service related to its
discontinued operations at Heartland Cup of approximately $35,000
per month. �We are very pleased to announce this transaction as
another step in our goal of divesting us of any activity not
associated with our core business of marketing nutritional
supplements and skin care products�, said Dr. Jerry Grizzle,
Chairman and CEO of AMS. �Republic Plastics is in the Styrofoam
business and will be able to produce Styrofoam cups as a logical
extension of their current business.� Gino Inman, Chairman,
President, & CEO of Republic Plastics said, �We are a privately
held company that produces foam tableware for nationwide
distribution to large and small retailers and distributors. The
acquisition of the Heartland Cup operation from AMS will give us a
foam cup product line extension to supplement our foam tableware
business. We appreciate AMS working with us on this flexible
acquisition opportunity to help us transition the Heartland Cup
business from AMS to Republic Plastics. � AMS Health Sciences, Inc.
sells more than 60 natural nutritional supplements, weight
management products, and natural skincare products through
independent distributors across the United States and Canada. More
information about the Company is available at
http://www.amsonline.com. AMS Health Sciences, Inc. (AMEX:AMM)
announced the execution of certain lease and purchase agreements
between Heartland Cup Inc. and Republic Plastics Ltd.
(collectively, the "Agreements"). Republic Plastics is located in
McQueeney, Texas and produces Styrofoam products for private label
users. The transaction will permit Republic to take over operation
of the Heartland plant immediately. Pursuant to the Agreements, and
effective November 15, 2006, Republic Plastics assumed the existing
lease for the Heartland plant, purchased all remaining cup
contracts with Heartland customers, and executed a two-year
equipment lease. The equipment lease includes an option in favor of
Republic Plastics to purchase all the equipment utilized in the
Heartland operations at a specified price. The option period begins
November 15, 2007 and ends November 15, 2008. By execution of the
Agreements, AMS will receive a cash benefit of approximately
$33,000 per month resulting from the assumption of the plant lease
and the rental payments under the equipment lease. This cash
benefit will offset AMS' monthly out-of-pocket costs and debt
service related to its discontinued operations at Heartland Cup of
approximately $35,000 per month. "We are very pleased to announce
this transaction as another step in our goal of divesting us of any
activity not associated with our core business of marketing
nutritional supplements and skin care products", said Dr. Jerry
Grizzle, Chairman and CEO of AMS. "Republic Plastics is in the
Styrofoam business and will be able to produce Styrofoam cups as a
logical extension of their current business." Gino Inman, Chairman,
President, & CEO of Republic Plastics said, "We are a privately
held company that produces foam tableware for nationwide
distribution to large and small retailers and distributors. The
acquisition of the Heartland Cup operation from AMS will give us a
foam cup product line extension to supplement our foam tableware
business. We appreciate AMS working with us on this flexible
acquisition opportunity to help us transition the Heartland Cup
business from AMS to Republic Plastics. " AMS Health Sciences, Inc.
sells more than 60 natural nutritional supplements, weight
management products, and natural skincare products through
independent distributors across the United States and Canada. More
information about the Company is available at
http://www.amsonline.com.
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