For immediate release.
Magboard Products Inc.’s Showcase Facility Targeted in Quebec
MONTREAL QUEBEC. 13 September 2017. MAG ONE PRODUCTS INC., (“Mag One” or the “Company”) is pleased to provide an update on Magboard Products Inc.’s (“MPI”) joint-venture with MagBoard LLC for assembling in Québec, its magnesium oxide-based, (“MgO”) ROK-ONTM Wallboard Panels and Structural Insulated Sheathing (“SIS”) products for the building construction industry. First, the Company has engaged consultants to help draft a detailed business plan for launching MPI activities to serve the Eastern Canadian and Northeastern US building construction markets, with the complete plan to be finalized and submitted to the Company’s Board for approval in October. Second, as mentioned in Mag One’s press release of August 25, 2017, the Company is in negotiations to construct a 12,000 ft2 building in the MRC des Sources region in southwest Quebec using ROK-ONTM SIS, to showcase the many benefits of these panels for industrial and commercial building construction projects.
MPI will use MagBoard LLC’s expertise, proprietary technology, and market-leading quality control procedures to build a ROK-ONTM panel-assembly facility in Quebec. Initially, the facility will be used to assemble ROK- ONTM SIS, provide value-added features such as insulation and moisture barriers, then distribute and sell the finished wallboard panels. As Mag One’s MgO production facility comes online, MPI’s wallboard panel manufacturing will also be integrated into the operations.
“Over the past few months, in close collaboration with our partners, MagBoard LLC management, Mag One has carefully examined the value proposition that ROK-ONTM can offer to the North Eastern Canadian and American markets, ” said Gillian Holcroft, President of Mag One. “In an addressable market that we estimate at over a $1 billion, this disruptive product could very well change how buildings are erected in these regions. We are refining our agreement with MagBoard and are also in the final stages of putting the business plan together for MPI.” The recent hurricanes in Texas and Florida have further highlighted the need for building products that are fire, rot and mold resistant. In addition, building products that are simpler to use, less expensive to install and thus faster to construct means that for commercial projects such as hotels, they will achieve both occupancy and revenues sooner.
“MPI is a perfect example of the vertical integration that we envisaged when we launched Mag One,” said Nelson
M. Skalbania, Chairman of Mag One. “We expect to become a major player, if not THE major player in the magnesium ecosystem in North America, from raw materials to finished goods, influencing environmentally- friendly products that affect our daily lives from lighter-weight, fuel efficient automobiles to lower carbon footprint transportation of goods, to higher performing buildings. With our planned Mg-based operations in southern Quebec we intend to transform a barren industrial landscape to a thriving Magnesium Valley and provide jobs for many.”
Using statistics from the US and Canadian governments regarding new construction of multi-family dwellings, as well as data from the 2017 Dodge Construction Outlook Report regarding residential, commercial, institutional and industrial building construction, Mag One estimates that MPI’s addressable market for ROK-ONTM SIS alone in North Eastern USA is nearly US$1 billion. In 2016, the market was 22.5 billion sqft and estimated to be worth $54 billion by the year 2022. MPI plans to produce these panels in Southern Québec, Canada, with its largest consumer, the USA just 50 miles away.
The majority of the world’s magnesium boards are produced in China where quality control is often a big concern. ROK-ONTM Wallboard Panels are building materials made from MgO and manufactured in sheets similar in format to gypsum boards for building walls. ROK-ONTM panels have an impressive fire, mold, insect and impact resistance, all the while complying with North American building codes, standards and practices. ROK-ONTM SIS are pre-fabricated and pre-cut structural assemblies of ROK-ONTM Wallboard Panels with insulating materials, integrated moisture barriers and windows. Building codes are being tightened throughout North America to require increased energy and fire performance in construction. ROK-ONTM SIS’s value- proposition is that it substantially reduces the overall construction time of commercial, industrial and institutional buildings. Cognisant of the disruptive nature of this technology to the industry, ROK-ONTM SIS provides healthy margins all along the value chain, from MPI, to the framing sub-contractor, to the builder and to the building owner/promoter.
Mag One Products Inc. is a company that aims to be the diamond standard in the magnesium (Mg) market by concentrating on four projects at its manufacturing plant site in southern Québec, Canada.
Production of high -purity MgO, Silica and other saleable co-products, byproducts and compounds.
Production of 99.9% pure Mg ingots.
Assembly and sale of magnesium oxide-based structural insulated sheathing panels.
MagPower’s Mg-Air Fuel Cell for emergency power on sea and land.
Key advantages that these four projects share are Mag One’s advanced technologies, a modular processing plant expansion concept, and the Company’s easy access to tonnes of serpentinite tailings.
Gillian Holcroft, Eng., M.Eng., President and Director of Mag One Products Inc., is the Company’s designated qualified person for this press release, and has reviewed and validated the information contained in it.
Signed: “Gillian Holcroft, Eng., M.Eng.”
President and Director
www.MagOneProducts.com
For further information or questions kindly contact the Company via email: info@MagOneProducts.com
Mag One is listed on the CSE with the symbol, “MDD”, the Börse Frankfurt stock exchange (“Frankfurt”) with the ticker symbol “304” and the OTCQB with ticker symbol "MGPRF”. Certain statements contained in this release may constitute "forward–looking statements" or "forward-looking information" (collectively "forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated”, “anticipates” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. This release contains forward-looking information relating to the business of the Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether because of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. This news release does not constitute an offer of securities for sale in the United States. The Frankfurt Boerse, OTQ Markets Group Inc., CSE, or CNSX Markets have not reviewed this news release and does not accept responsibility for the adequacy or accuracy of the content of this news release. Issuers of news releases. are solely responsible for the accuracy of such news releases. For further information on risk, investors are advised to see the Companies MD&A and other disclosure filings with the CSE regulators which are found at www.sedar.com.