Titan Reaffirms Business Acceleration Initiatives to Drive Prospective Division’s Revenues to Approximately $60 Million in Fiscal 2008
Sep 27, 2007
Titan Global Holdings, Inc. (OTCBB:TTGL), a high-growth diversified holding company, announced today that the Board of Directors have authorized the Company's counsel to provide written notice of its option to exercise the purchase of 80% of the outstanding stock of USA Detergents, Inc. ("USAD"), a value-driven acquisition that provides high quality branded consumer products that are categorized as "Branded Value." Titan management has also identified significant business development opportunities for revenue and earnings acceleration for USAD. Titan anticipates the closing will take place within the next five business days.
On August 9, 2007 Titan announced the execution of the referenced definitive option agreement. Pursuant to the terms of that agreement, Titan has managed USAD's operations over the last sixty day period. Upon the closing, Church & Dwight will own 7.5% and the remaining 12.5% will be owned by the existing senior management of the reorganized USAD.
On August 10, 2007 Titan appointed Frank Orlando as the Chief Restructuring Officer of USAD. During the option period Mr. Orlando has managed USAD's operations. Mr. Orlando and his team have identified significant business development opportunities.
"Through our work we concluded and reported to Titan's Board of Directors that USAD is a compelling acquisition with significant and immediate opportunities for revenue and earnings growth," said Mr. Orlando. "We will continue to work closely with USAD's management team and provide them with the strategic and financial resources to exploit USAD's opportunities in the immediate future."
USAD distributes mixed truckloads of nationally-recognized laundry, cleaner and candle brands at attractive prices and in unique merchandising configurations. By leveraging brand extensions and licensing agreements with consumer product conglomerates, USAD's brands include Xtra, Arm & Hammer, Aim, Close-up, Pepsodent, Betty Crocker, Snapple, Fine Care, Brillo, Touch of Glass, Fabulous and Oxymax. Consistent with the distribution focus of Titan's other divisions, USAD's distribution footprint serves small and mid-sized retailers, wholesalers and distributors that serve metropolitan areas in the U.S. and internationally.
"As I have previously stated, we identified immediate synergies with Titan's existing distribution, products and services," said Bryan Chance, President and Chief Executive Officer of Titan Global Holdings. "As our existing business units reach 60,000 independently owned retailers and 5,000 convenient store locations, we have inherent opportunities to add USAD's products to our established channels. With USAD's experience and our extensive resources and capabilities, USAD will be a tremendous addition to Titan Global Brands."
USAD manufactures its products at a plant of 206,000 square feet in Hillside, New Jersey. USAD distributes its products from a 175,000 square foot warehouse in Brunswick, New Jersey. Its corporate headquarters is in offices of 10,000 square feet in Brunswick, New Jersey. USAD has 71 employees.
Titan Global Brands
Titan recently announced the formation of Titan Global Brands to integrate, protect and expand brand management capabilities and to leverage and optimize growth from the Company's distribution channels. Through its diverse family of subsidiaries, Titan owns or manages more than 100 trusted brands that are distributed through efficient, overlapping and expansive distribution channels. Titan's distribution channels reach over 65,000 retail locations throughout the United States and in over 200 countries around the world.
About Titan Global Holdings
Titan Global Holdings, Inc. is a high-growth diversified holding company with a dynamic portfolio of companies engaged in emerging telecommunications markets, advanced technologies and energy. In its last fiscal year Titan generated in excess of $109 million in revenues on a consolidated basis.
Titan's Oblio Telecom Inc. ("Oblio") telecommunications subsidiary, based in Richardson, Texas, is a market leader in prepaid telecommunications products and the second largest publicly-owned international telecommunications company focused on the prepaid space. Oblio leverages strategic agreements with Tier 1 telecommunications leaders Sprint and Level3 to supply its brand-name prepaid calling cards. Annually Oblio sells an estimated 35 million of its brand-name prepaid calling cards through its established distribution channels estimated at more than 60,000 retail outlets.
Titan Wireless, Inc. ("T Wireless") is Titan's wireless subsidiary and is a mobile virtual network operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products and wireless services through Oblio's established distribution channels. Titan's Electronics and Homeland Security division specializes in advanced manufacturing processes to provide commercial production runs and quick-turn delivery of printed circuit board prototypes for high-margin markets including Homeland Security and high-tech clients.
For more information, please visit: www.titanglobalholdings.com. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/titan/quote.html. To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.
Forward-Looking Statements
Safe Harbor Statement Under the Private Securities Litigation Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TTGL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.
