The agreement states that Intek shareholders will receive newly issued shares of Lexon and own 80 percent of the combined entity.
Intek’s management team will assume operating and managerial control upon completion of the reverse merger.
The Letter of Intent is non-binding and final completion of the reverse merger will be subject to due diligence and shareholder and board approval.
The GoECOlife remanufactured toner cartridge line was conceived in collaboration with Lexon and is set to launch in the next two months. There are also a handful of new products in development or pending release this year and continuing through 2011. Intek’s core brand, GoECOlife, launched in 2009 and offers eco-friendly products for the home, office and everyday living.
According to Lexon’s CEO James Park, the companies have combined revenue of $30 million for the past fiscal year 2009.
He said: “We are truly excited about the synergies that both companies share with each other. The main stimulus for this reverse merger was the tremendous growth potential of the GoECOlife brand and the strong demand for the products associated with this brand.
“We also inherit the proven sales experience and existing business relationships of Intek to sell our toner products to their existing big box retailers as well as through their entire sales network.”
Herman Chang, CEO of Intek, added: “Lexon represents the next logical step in our growth. Not only do we acquire a profitable toner manufacturer, we also become a public company whereby we can accelerate the brand awareness of GoECOlife.
“As a public company, we will be rewarded for our continued growth and the timely introduction of sustainable products across multiple categories on a larger scale in the market.”
In April, The Recycler reported that Lexon’s Paragon Toner gained a STMC certification. Click here to read more.