POINT EDWARD, ON -- (Marketwire) -- 08/18/10 -- Megola Inc. (OTCBB: MGON), a leading environmental solution provider, announces that after more than a year of product testing, a preliminary sale of its 'Anti-Fire' product, Hartindo AF21, a water-based, non-toxic, environmentally-friendly fire inhibitor, has been sold to a USA-based company that is one of the largest textile and chemical manufacturers in the world with annual sales in excess of 3 billion dollars.
'This is definitely another milestone for Megola and the Hartindo AF21 product line, as we have continued to focus our resources on getting proper industry approvals, which we hope will set new industry standards. This preliminary sales order from a very reputable company is confirmation that we truly have something special with the Hartindo product line, and supports all of our efforts to date,' states Joel Gardner, CEO Megola Inc. 'While the client wishes to remain anonymous at this time, we do intend to provide further updates and will identify our customer when increased sale volumes are generated,' continued Gardner.
Enormous Market Potential ($2.4 Billion)
A 2010 Ceresana Research article reports that every year in the USA approximately 4,000 people die in fires, while over 260,000 are injured. The total loss caused by fires in the USA is approximately $250 billion, which is the equivalent of approx. 2% of the country's GDP. Such figures highlight the significance of flame retardants for the protection of lives and property. The annual consumption of flame retardants is currently over 1.5 million tonnes, which is the equivalent of a sales volume of approximately $2.4 billion.
The introduction of new fire safety standards and laws has been an important and influential factor on the flame retardant market. These standards and laws will result in a further growth phase in the market and will influence the various application areas such as the plastic, textile, coating, wood and electronic industries. Due to the tightening of laws in this area, the flame retardant characteristics of thousands of products like electronic equipment, plastics, textiles and construction materials must be improved, while manufacturers must change over to environmentally-friendly types of flame retardants. Therefore, the market shares of certain organic, halogenated flame retardants are expected to decrease due to the many environmental and health problems associated with them.
In addition to stricter fire safety standards, new regulations, voluntary commitments from industry, and numerous eco-labels have been introduced in the past few years. This has led to a greater demand for flame retardants and has also placed new demands on the flame retardants themselves.
Video demonstrations of the effectiveness of Hartindo AF21 can be seen by visiting Megola's YouTube Channel at http://www.youtube.com/user/MEGOLAinc.
Non-Flammable vs Competitors Short Term Flame Resistance
Unlike many current fire retardants that only resist fire for a short period of time, Hartindo AF21-treated material will not burn. Flames from untreated material will not be able to spread when they encounter Hartindo AF21-treated material, which causes a fire to be limited to the size of the initial fuel source. Some current retardant manufacturers are BASF, Chemtura, Lanxess, Sherwin-Williams Company.
Non-Toxic, Environmentally Friendly
Hartindo AF21 is water-based and contains a mixture of inorganic compounds and a proprietary blend of fire-inhibiting ingredients. The results of toxicity testing performed by a third-party laboratory in the U.S.A., using Environmental Protection Agency (EPA) approved test methods, showed that Hartindo AF21 is essentially non-toxic when ingested and non-irritating upon contact with eyes or skin. This is in stark contrast to many current fire retardants that are solvent-based, toxic and potentially irritating to eyes and skin. In fact, there is strong evidence that some of the common fire retardant chemicals used today can bioaccumulate in our bodies and can persist for many years in the environment.
The potential applications for Hartindo AF21 are innumerable. It can be used to treat any water-absorbent, natural material, such as cotton, linen, wool and wood, and many synthetic materials, such as polyester and some polypropylene and polystyrene products. Methods of application include spraying, dipping or padding, which can be performed onsite or during the manufacturing process.
Currently, Hartindo AF21 is proving to be an important component of EcoBlu Products, Inc.'s wood protection arsenal. EcoBlu Products, Inc. (www.ecobluproducts.com) is a manufacturer of proprietary wood products coated with an eco-friendly chemistry that protects against mold, fungus, rot-decay, and wood ingesting insects, including termites. Now, with EcoBlu's FRC technology (Fire Retardant Coating), which utilizes Hartindo AF21 as a major component, their latest product formulations also protect against fire. EcoBlu products utilizing BLUWOOD and FRC technology is the ultimate in wood protection, preservation, and fire safety to building components constructed of wood; from joists, beams and paneling, to floors and ceilings.
Another application where Hartindo AF21 could see significant use is in uniforms and protective clothing. Whereas some engineered materials only resist fire for several seconds, Hartindo AF21-treated material will never catch fire. Instead, a protective char is formed that prevents combustion and also protects the non-exposed side of the material from the heat source, up to 3000°C (over 5400°F). Thus, there is great potential in the production of lightweight, breathable, fire resistant clothing and personal protective equipment.
Hartindo AF21 meets all international standards including:
- British Standards (BTTG WIRA & LPC tested to Civil Aviation Authority CAA, UK)
- US Regulations (tested to Federal Aviation Administration - FAA, USA)
- SISIR (Singapore)
- SIRIM (Malaysia)
- BPPT (Indonesia)
- NYC Fire Department Certificate of Approval for use as a 100% Cotton, or Cotton/Polyester Blend, Flameproofing Compound (NFPA Standard 701)
- ASTM E84 (CLASS A) -- surface burning characteristics of building materials
- ASTM E84 (with Bluwood) (CLASS A) -- various types of wood products -- Douglas Fir, Southern Yellow Pine (SYP), SPF, plywood, etc...
- 16 CFR 1633 -- open flame mattress flammability test
- ASTM D 3201 -- Hygroscopicity Test(compared to Dricon (pressure-treated wood))
- NFPA 701 -- vertical burn test; flame propagation of textiles
- NFPA 2112 -- flame resistance for protection of industrial personnel against flash fires
For more info on Megola Inc., please visit www.megola.com
As of July 26, 2010, the Common Share structure for Megola is as follows:
Authorized: 200,000,000 Outstanding: 33,399,980 Restricted: 7,144,087 Float: 26,255,893
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.