Tuesday, 10 July 2007

JER Newsletter Points to Business Traction

JER recently released the latest edition of its investor newsletter, which provides interesting hints of the company's progress over the past few months and the potential for a major ramp up in sales.

The newsletter mentions five major opportunities that JER is currently working on, some of which are already providing levels of sales the company has never before seen. Should these these opportunities come to fruition as long term consistent purchase orders, JER would recognize substantial and consistent cashflows. Given the advanced state of some of these opportunities, it appears there are better than even chances that the Company is on the verge of a breakthrough.
The first opportunity mentioned is the production evaluation with a large injection molding company based in Windsor, Ontario. The opportunity is now scaling up with an initial 5000 lb pre-production trial in the second week of July. Assuming all goes well, the customer has indicated a requirement of upwards of 80,000 lbs per month ongoing.

The second opportunity discussed is with the largest hardwood flooring manufacturers in North America, which JER has been working with for six months. In this application, JER's panel board material has been thoroughly tested and the Company has been notified that it complies with the customer's engineering specifications. Key personnel visited JER's production facility in Delta, British Columbia in mid-June to discuss production logistics. Initial production is expected before the end of the 2007 calendar year. If this opportunity comes to full fruition, the volumes required to meet supply requirements would require multiple panel board production lines running at full capacity.

JER is also working with a large US-based manufacturer of fencing materials to test its wood-thermoplastic biocomposite technology for an injection-molded fence end cap application. The manufacturer has placed a trial order for 1300 lbs of JER's 905 formulation, which is based on pine wood flour. This is the first time the manufacturer will be using wood-thermoplastic biocomposite compound as an alternative to pure polymer.

And perhaps most interesting is that over the last 60 days, JER has supplied 320,000 lbs of its proprietary wood-thermoplastic biocomposites to a large manufacturer of extruded decking products in the United States. Overall potential from this customer alone is estimated at 320,000 lbs per month.

Finally, JER notes that it has been working for a number of months with a US-based manufacturer of extruded parts destined for the gardening industry. This client is a supplier to one of the world's largest retailers of home building products. JER stated that its wood-thermoplastic composites have been performing well for this application, and the client has indicated a potential for approximately 2 truckloads monthly (80,000 lbs) on an ongoing basis.

Needless to say, we are highly encouraged with this update.

To read the newsletter click here.