An Oklahoma City Base Company that markets different kinds of products such as diet pills, nutritional supplements and skin care products has settled two lawsuits out of court and closed a deal regarding the lease purchase agreement with a Texas base corporation take over the reins of an idle Pontotoc County Styrofoam Cup Manufacturing Plant AMS bought just last year.
The president of AMS, Jerry Grizzle announced that the next goal of their company is to get sufficient attention from the market analysts, fill their board seats with competent individuals and take the necessary steps to ensure that their stocks will remain listed on the American Stock Exchange. Grizzle said last November 20, 2006 that they are just really happy about the recent developments as they are really trying hard to get their act together so that they could all move forward. AMS sells about 60 different household and personal products through their multilevel marketing network of sales distributors who earn their commission base on their sales and the sales of the people that they had recruited after they were accepted to AMS.
The 2004 ban of the Federal Government regarding Ephedra paralyzed AMS’s sales because one of their most popular products has ephedra as their active ingredient and the company has not recovered since then. Management trouble was also a key factor on why the company is struggling so much because the internal squabbling in the company has shaken the investor and customer confidence with the company. Grizzle said that they have settled their last ephedra related case and is already protected by the statute of limitations from further lawsuits in relation with their products containing ephedra. They have also settled a case regarding the royalties connected with their top-selling potion.
The company also thought of a plan this year that will keep their stocks above the level that is required by the American Stock Exchange because the company was previously warned by the company that they would be removed from the listing if they do not do something about the problem. Since Grizzle was hired last January, he has worked hard to look for a buyer for the company plant at Heartland Cup that was purchase last year. The plant was shut down to cut the expenses of the company. AMS will receive about $33,000 dollars for the lease on the plant and equipments which will offset the expenses of the company related to their discontinued operation at Heartland Cup for about $35,000 dollars.
Grizzle said that the Heartland Cup cost AMS $600,000 dollars. They are hoping to start anew next year and to be profitable even at the first quarter of the year without all these expenses and problems that are hindering the growth of the company. AMS signed the lease deal with Republic Plastics. According to President Gino Inman said that their company makes produces private-label foam plates, bowls and other products for retailers and distributors.
The announcement drew mix reactions from the market, who have added 3 cents to the value of the AMS shares but it is still far from the $1 dollars goal of the company to ensure that they will be continued to be listed at the American Exchange. Grizzle added in closing that it is only of the first step towards company recovery and they are hoping that things will be much better for the company next year.
Dick is a free lancer writer of http://www.askdeb.com/
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