SARNIA, ON -- (Marketwire) -- 04/13/11 -- Megola Inc. (OTCBB: MGON) has announced that it has ended its exclusive product supply relationship with EcoBlu Products Inc to Megola's anti-fire inhibitor AF21 product line for the wood industry. Megola has already initiated business relationships with other Bluwood, Nexgen sales representatives along with other companies wanting fire protection within the wood industry.
'Our product is North American manufactured, UL quality controlled, has liability insurance coverage and has passed the required testing, certification approvals to generate sales into the wood industry. We have been manufacturing the anti-fire AF21 product line since the recipe was purchased by 1771601 Ontario Inc back in 2008 from Randall Hart of Newstar Chemicals (M) Sdn Bhd. We have no issues to continue to supply EcoBlu Products Inc on a non exclusive basis as we currently have paid product of our AF21 prepared for them at our blending facility just waiting for them to arrange delivery. Should EcoBlu Products Inc source elsewhere for a new supplier for a fire additive then we feel that unless they are using the product we supplied them for their fire approvals, then those certifications would no longer be valid. Ending our exclusive relationship with EcoBlu Products Inc allows Megola to pursue all other wood product suppliers and end users. We can no longer rely on false promises of projected sales volumes. We have already started discussions with companies for non exclusive sales agency agreements and have shipped product to a couple of them. Our goal is to move product and no longer have our hands tied to one company; you want our AF21 fire product, we will deliver it, and same goes for the rest of our product lines,' states Joel Gardner, CEO, Megola Inc.
Market Potential ($18 billion)
Dimensional (framing) lumber, and engineered wood products (EWP) such as floor joists, laminated wood beams, roof trusses, rim board and structural panels will represent $18 billion in economic activity when the housing market fully recovers. Even in today's depressed market, the industry will still post numbers exceeding $11 billion. The wood chemicals market enjoyed $2+ billion in revenues in 2007.
Unlike many current fire retardant solutions, which only delay the start of fires, AF21 is a total fire inhibitor, rendering all natural materials and many synthetics non-flammable.
Water-based, non-toxic, and environmentally-friendly, AF21 is a safe alternative to current fire retardant chemicals.
For more information on Megola Inc., visit www.megola.com
Shareholders and investors are strongly cautioned against placing undue reliance on information set forth in these communications in making any investment decisions concerning our securities. The matters set forth in this press release are forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission including the company's Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.