Contact Information: Investor Relations Contact: Hawk Associates, Inc. Frank N. Hawkins, Jr. or Julie Marshall Phone: (305) 451-1888 Email: Email Contact
Providential Holdings Signs Definitive Agreement to Take Nanjing Rhine Pharmaceutical Technology Public in the U.S.
| Source: Providential Holdings, Inc.
LOS ANGELES, CA and NANJING, CHINA -- (MARKET WIRE) -- January 16, 2007 -- Providential Holdings,
Inc. (OTCBB : PRVH ) (German Stock Exchanges: PR7, WKN 935160), a provider of
international advisory services specializing in mergers and acquisitions,
announced today a definitive agreement with Nanjing Rhine Pharmaceutical
Technology, Inc. (Rhine) to help take the company public in the United
States. Providential will also arrange $5 million to $10 million in
financing to expand Rhine's production facilities. In exchange,
Providential will receive stock and/or cash from Rhine
(http://www.rhinepharm.com).
Chairman and CEO Henry Fahman said, "We initiated a contract with Rhine in
November, and now that agreement has been finalized. Rhine is extremely
well positioned to benefit from its business relationships with Merck and
other major Western pharmaceutical companies facilitated by a strong global
network of strategic distribution channels. The management team is
particularly strong with a wide range of pharmaceutical expertise and
strong educational backgrounds including a number of Ph.D.s and qualified
engineers. Going public in the United States will provide the company with
access to capital to fund expansion and will provide investors with an
excellent opportunity to participate in China's rapidly growing
pharmaceutical industry."
Rhine's projected sales profit margins in 2007 are placed at over 50%, and
when restated for R&D costs that are expensed, the past profit margins are
in line with these projections. The company, which is profitable and
expects to post revenue of approximately $1.6 million in 2006, is debt free
and shows a small capital surplus on its balance sheet.
Shirley Zhu, Rhine's CEO, said, "With an infusion of capital to expand our
production capacity, we expect net revenue to exceed $20 million and could
potentially triple to more than $60 million by 2008. We are grateful to
have assistance from Providential Holdings."
In other news, Providential Holdings announced that it is no longer
pursuing the acquisition of Grocer Enterprise. Providential had signed a
letter of intent to purchase Grocer in early December.
About Nanjing Rhine
Rhine is a leader in the synthesis of high purity compounds for the
biotechnology and pharmaceutical industry. Rhine has nine patents -- six
Chinese and three international. The company is located in Nanjing's High
Technology Industrial Development Zone in the province of Jiangsu, China.
This area is China's premier biotech/pharmaceutical cluster. With emphasis
on pharmaceutical synthesis including design, discovery and development of
intermediary medical goods, Rhine has extensive back orders from major
firms in the U.S., United Kingdom, EU, and China. Merck has been one of
Rhine's frequent buyers.
About Providential Holdings, Inc.
Providential Holdings and its subsidiaries engage in a number of diverse
business activities, the most important of which are M&A advisory services
and independent energy. The company acquires and consolidates special
opportunities in selective high-growth industries to create additional
value, acts as an incubator for emerging companies and technologies, and
provides financial consultancy and M&A advisory services to U.S. and
foreign companies. For more information on Providential Holdings and its
subsidiaries, visit http://www.phiglobal.com. As part of its activities in
Vietnam, Providential has been hosting seminars in conjunction with the
Nasdaq Stock Market, the Vietnamese Chamber of Commerce and Industry and a
leading U.S. investment-banking firm to help Vietnamese companies go public
and raise capital through the U.S. financial markets.
A profile for investors can be accessed at
http://www.hawkassociates.com/prvhprofile.aspx.
For investor relations questions regarding Providential, contact Frank
Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail:
info@hawkassociates.com, or visit http://www.americanmicrocaps.com or
http://www.hawkassociates.com
Safe Harbor: This news release contains forward-looking statements that are
subject to certain risks and uncertainties that may cause actual results to
differ materially from those projected on the basis of such forward-looking
statements. Such forward-looking statements are made based upon
management's beliefs, as well as assumptions made by, and information
currently available to, management pursuant to the "safe-harbor" provisions
of the Private Securities Litigation Reform Act of 1995.