Paneltech International Completes Reverse Merger And Becomes A Publicly Traded Corporation

HOQUIAM, Wash., Dec. 28 /PRNewswire-FirstCall/ -- Paneltech International LLC ("Paneltech"), a company engaged in the design and manufacture of resin-saturated media announced today that on December 23, 2009 it completed a reverse merger (the "Merger") with publicly traded Charleston Basics, Inc. ("Charleston" or the "Company") (OTC Bulletin Board: CHBS) a company that previously sold outdoor camping goods and tactical gear.  Under the terms of the Merger, Paneltech merged with and into Paneltech Products, Inc., a Delaware corporation and wholly-owned subsidiary of Charleston, to become Charleston's principal operating business. Charleston intends to change its name to "Paneltech International Holdings, Inc."

As a result of the transaction, the former members of Paneltech currently own approximately 90% of the outstanding common stock of the Company (before adjusting for any conversion or exercise of any preferred stock or warrants into common stock of the Company).  Also in connection with the Merger, Alan P. Donenfeld was replaced as sole officer and director of the Company and the new Directors of the Company currently consist of Leroy Nott, Scott Olmstead, Sidney Staunton, Trent Gunter and R. Wade Mosby.

Immediately following consummation of the Merger, the Company entered into Securities Purchase Agreements with two investors and raised an aggregate of $1.5 Million in an offering of the Company's preferred stock and warrants pursuant to which the Company is seeking to raise an aggregate of $3.0 Million (the " Offering") on or before January 22, 2010.  Under the terms of the Offering, if the full $3.0 Million is raised in the Offering, the preferred stock will be convertible into 33.33% of the outstanding common stock of Charleston (on an as converted basis) at the time Merger was consummated, and the warrants will be exercisable into one-third of the common stock into which the preferred stock acquired in the Offering is convertible.  Of the $1.5 million of proceeds raised, $375,000 were used to buy back certain shares held by Collins Timber Company LLC, a former member of Paneltech.  The Company also issued a Promissory Note in the amount of $375,000 to complete the purchase of shares from Collins Timber Company LLC.