United States, No... "Business Concept Environmental Fibers will be in the business of providing bleached cotton fiber to the personal hygiene, medical, filtration, and non-woven industries. Our first target customers are those companies that produce feminine hygiene products, medical gauze, bandages, and absorbent pads. Important characteristics of this product are cleanliness, suitability for use around open wounds, absorbency, and price. We feel that Environmental Fibers will be uniquely positioned to serve the needs of this market for the following reasons: 1) We will be low cost producer through the use of proprietary technology that will allow us to use a gin waste product as our primary raw material. This will allow RBS to save approx. 20% on raw material costs versus its competitors. 2) We will offer the customer a higher quality, more consistent product through the utilization of new Low-Liquor bleaching equipment. In addition, this equipment is approx. 10-15% more efficient to operate versus present methods. We are a start-up company, not yet incorporated. The principal owners are Roman Tolmasov (Gen. Mgr.), Scott Matre (Director of Manufacturing), and Bill Ripley (Director of Sales and Marketing). Mr. Matre brings over 12 years of textile wet processing experience to the organization. He has personally been involved with the design and specifications of 4 other raw fiber bleaching and/or dyeing operations. Mr. Ripley has over 30 years experience in designing and building fiber processing plants. He also has experience in buying and selling cotton fiber to bleaching customers across the globe. Mr. Tolmasov is an entrepreneur who has extensive experience in the importation and Exportation of cotton. He has also owned his own jewelry manufacturing business, which he recently sold. With these qualified and diverse people, Environmental Fibers will be positioned to operate a profitable business in the underserved medical grade bleached cotton fiber industry. We are currently seeking start-up capital to secure deposits on equipment, raw cotton commitments, and plant facilities. We hope to begin business by August 2000. There are several key factors that can be identified which will ensure our firm's ability to succeed. In order of relative importance these factors are: 1. Our low cost structure due to the use of cotton waste as our raw material 2. Our energy efficient processing through the use of high density, low liquor bleaching methods 3. Our principals' combined experience and contacts within this industry 4. The ability to cover large production commitments FINANCIAL SITUATIONS/NEEDS At this time we are seeking $1.5MM in capital in order to secure bank and equipment loans of $6MM. These proceeds will go toward financing new equipment purchases, initial working capital, and start-up expenses of the business. We estimate that RBS will have a negative cash flow for approx. (10) months. We will be able to pay down the loan in approximately 5 years. Of the $7.5 million total needed, we have presently secured commitments for other financing for approx. $900,000 from Thies Corporation Rock Hill, SC. VISION Environmental Fibers intends to be a value leader among producers of medial grade bleached cotton. We intend to do this by leveraging our cost advantage (use of cleaned cotton waste), and our investment in technologically advanced processing equipment. In the short term (3yrs), we hope to grow our sales from the projected 1 year level of approx. 1.5 million per month to approx. 2.3 million per month through the expansi...
Chief Executive Officer