Board of Directors Chairman Richard Kurtz Completes Equity Conversion for $1.48MM in Common Stock
Houston, TX – December 3, 2014 – Today Lapolla Industries, Inc. announced it had retained the services of Delahunt Group and 9.8 Group to assist in government affairs outreach. Lapolla, a Houston-based manufacturer and global supplier of spray polyurethane foam insulation, reflective roof coatings, and equipment designed to reduce energy consumption in the residential, industrial and commercial markets, initiated the engagement of Delahunt Group and 9.8 Group at an opportune time due to favorable regulatory environment for its low-HFC foam insulation system, the first of its kind in the marketplace.
In September, Lapolla’s pioneering efforts in eco-friendly, energy saving building materials were noted by the White House when the company was named an official private sector partner of President Obama’s Climate Action Plan. As part of that program, Lapolla pledged to shift its full product line to low-HFC by 2016, while among other Executive Actions, President Obama issued an order for all federal agencies to consider and show preference to low-HFC alternatives during their procurement process. As a result of Lapolla’s first-mover status in the industry, Lapolla remains the only company today with its next generation third party tested and approved wall foam system that uses the Solstice® Liquid Blowing Agent available for use. Solstice® LBA is nonflammable, has received EPA approval under the Significant New Alternatives Policy (SNAP) Program and is not a volatile organic compound.
“Our investments in innovative, next generation products are positioned to bear fruit in meaningful ways,” said Douglas Kramer, Chief Executive Officer of Lapolla Industries. “This partnership with Delahunt Group and 9.8 Group will allow us to access new customers, better articulate our value proposition to government audiences, and maximize the opportunity presented by the current regulatory environment.”
Additionally, Lapolla announced Richard J. Kurtz, Chairman of Lapolla’s Board of Directors and principal stockholder, made an investment in the Company by exchanging $1,485,212 principal and accrued interest of a promissory note made by the Company to Mr. Kurtz. The purchase price for each Lapolla share is based on the closing price of the Company’s common stock as of December 1, 2014 ($0.38 per share). The number of shares purchased as a result of this equity conversion is 3,908,453 shares.
“The execution of this equity conversion is an indicator of my continued confidence in the underlying fundamentals and long-term potential of Lapolla,” said Richard J. Kurtz, Chairman of the Board and principal shareholder. “Whether innovative products, a favorable regulatory landscape, or the continuing shift of market trends towards our core product lines, Lapolla is particularly well-positioned for meaningful future growth.”
Lapolla’s foam products include spray foam insulation for residential and commercial perimeter walls, crawl spaces and attic space applications. The company also supplies spray foam and elastomeric coatings for low slope residential and commercial roofing. Lapolla supplies polyurethane as an adhesive for board stock insulation to roofing substrates for commercial and industrial applications as well as sundry items.
About Lapolla Industries, Inc.
Lapolla Industries, Inc. is a global supplier, and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, designed to reduce energy consumption in residential, industrial and commercial markets, for both new construction and retrofit applications. More information at www.lapolla.com.
Forward Looking Statements
Statements made in this press release that are not historical facts constitute “forward-looking statements”. Any such forward-looking statements should be considered in context with various disclosures made by Company about its business. All information herein is as of date hereof. Company undertakes no duty to update any forward-looking statement.
Douglas J. Kramer, CEO and President
Michael T. Adams, EVP
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