Washington D.C., August 16, 2013 - Virtual Sourcing, Inc. (OTCPink: PGCX) has signed a Letter of Intent (the ‘LOI’) to purchase a company that is a recycler of paper, plastics and cardboard and marketer these sorted materials within our licensed market area. This recycler is on pace to grow revenue to more than $9,000,000 this year with a greater than ten percent positive net cash flow. This business has had significant year over sales growth in all but one of the past five years. The price for the recycled materials is recovering handsomely from a downturn in 2012 and demand has markedly improved for properly sorted recyclable materials.
The acquisition will close on the successful completion of an audit of the last two years financials and an appraisal of the assets. These should be complete before the end of the quarter. We are currently negotiating a management contract to manage the acquisition during the completion of these requirements. The seller has projected that sales should increase to between $11 and $13 million annually over the next three years with a strong double digit increase in profit.
Virtual Sourcing, Inc. is actively pursuing the acquisition of thriving businesses with a five-year or more operating history, year over year sales growth, and strong net cash flow in excess of 10% of sales and also increasing year over year. Our targets are recyclers, manufacturers of recycled products, plastics extrusion companies and suppliers of recycled materials for manufacturing. The company believes the acquisition of these types of business will immediately enhance our bottom line and provide professional expertise for our fiberglass recycling and product manufacturing operations. The purchase of recyclers provides an additional stream of supply that can be mixed with recycled fiberglass to make durable and inexpensive products for insulation, building materials, security apparatus plus lawn and garden supplies and equipment.
This press release contains forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such statements. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly revise any forward-looking statements.
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SOURCE Virtual Sourcing, Inc.