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Action Products Int'l Inc. to Liquidate Toy Business and Seek New Venture

  //house-home.news-articles.net/content/2009/12/0 .. liquidate-toy-business-and-seek-new-venture.html
  Published in House and Home on Friday, December 4th 2009 at 7:06 GMT by Market Wire
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ALTAMONTE SPRINGS, FL--(Marketwire - December 4, 2009) - Warren Kaplan, Principal Restructuring Officer of Action Products Int'l Inc. (PINKSHEETS: [ APII ]) announced today that the company is going to liquidate its failing toy business and seek a new venture. The company has a tax loss in excess of $11,500,000.

Mr. Kaplan stated, "I returned to the company as Principal Restructuring Officer, in the later part of March, after being nearly four years away. The enormity of the financial problems became unmasked as the financials were delved into for the year-end audit. The CFO/COO, with virtually no 'skin in the game,' had suddenly resigned in late February and the CEO/Chairman, with just 48 hours of notice, resigned at the end of March. Sales were falling precipitously; shippers would not deliver goods nor pick up shipments for the company's customers. Sales representatives had not been paid commissions that were owed for months and no longer wanted to sell for the company, phone bills had not been paid and service was being cut off and even the electric company was threatening to cut off service due to non payment.

"The 10K could not be filed due to the constant revelations of new problems and necessary write downs, including millions of dollars due to vendors and credit lines from suppliers and service company were cut off. Expenses were cut and where possible some legacy debt was settled at cents on the dollar. In addition, the Company was facing the expiration on June 25th of the main credit facility, which was secured by a lien on all of the Company's assets. The Company found a new creditor to purchase the position of the previous finance company and it was hoped the Company could be salvaged."

Mr. Kaplan continued, "The secured creditor had given us time to work out a solution but it turned out to be a 'Humpty Dumpty' situation. Action Products could not be put back together again. Sadly the good name of Action Products Int'l Inc. which operated since 1977, and was a publicly held company on NASDAQ since 1984, had been irreparably damaged.

"In the interest of trying to salvage value for the shareholders, it has been decided to seek a new venture and the company's management has been focused on that course. We do not know if we will be successful but we will try." Mr. Kaplan continued, "We have just filed interim unaudited financial statements at [ http://www.pinksheets.com/pink/quote/quote.jsp?symbol=apii ]."

Reverse Merger candidates are urged to send all proposals with contact information to [ TOBYInvestmentGp@aol.com ]. No telephone calls will be answered.

This document contains certain forward-looking statements concerning Action Products Int'l Inc., as well as other expectations, plans, goals, objectives, information or statements about future events, conditions, results of operations or performance that may constitute "forward-looking statements" or "forward-looking information" under applicable securities legislation. Such statements or information involve substantial known and unknown risks and uncertainties, certain of which are beyond Action Products Int'l Inc.'s control, including the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, pipeline design and construction, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities.

Such forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect. In addition to other assumptions identified in this news release, assumptions have been made regarding, among other things, commodity prices, operating conditions, capital and other expenditures, and project development activities.

Although Action Products Int'l Inc. believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Action Products Int'l Inc. can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Action Products Int'l Inc. and described in the forward-looking statements or information.

The forward-looking statements or information contained in this news release are made as of the date hereof and Action Products Int'l Inc. undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise unless so required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.