VISTA, Calif. – Eco Building Products, Inc., the manufacturer of Eco Red Shield treated wood products that protect against fire and mold, announced it has entered into a letter of intent to establish a joint venture with Steelhead Structures, based in Calgary, Alberta. Under the terms of the Letter of Intent (LOI), the Company and Steelhead will create a joint venture named Eco Red Shield Canada, Ltd (ERSC), which will be established as part of the Company's emerging affiliate program. Definitive agreements are expected to be executed within 30 days. Total revenues to the Company are expected to be $1.5M in the first full year of operations. Steelhead has paid a non-refundable deposit of $10,000 to the Company pursuant to the terms of the LOI.
ECRS intends to establish 3 coating facilities across Canada, including the provinces of Alberta, Ontario, and British Columbia, respectively. ECRS consists of four partners all with extensive construction industry experience and is expected to make an impact in the Canadian market.
"We are very excited to join the ECOB team and we all feel that this will be a very successful venture," said Richard Nutting, Eco Red Shield Canada's President. "We will help to fill the requirements brought on by the success of ECOB in the United States while growing the Canadian market. We have the same problems with mold on lumber and with fire in buildings under construction, and we agree it's time to stop pushing these problems under the rug."
ECOB's CEO, Steve Conboy says, "Growing our Affiliate Network has always been a big part of our business strategy. We have interviewed many potential partners in Canada, and it was important for us to be patient because we had to find the right group that shares the same vision as we do. This is a very exciting prospective partnership for us since this group has the same roots as ECOB in the framing business. Framers recognize the variety of problems associated with softwood. An ECOB Affiliate in close proximity to the Canadian Spruce will give us the ability to infiltrate Modular Factories looking to employ ECOB's mold and fire protection. The key of this transaction is that the import will be for a finished goods, ready to be sold directly to end-customers."