SALT LAKE CITY, Oct. 19 /PRNewswire-FirstCall/ -- Nexia Holdings, Inc. (OTC Bulletin Board: NEXA), a diversified holdings company with interests in health & beauty, fashion retail and real estate, announced today that it has closed on the purchase of 90% of the issued and outstanding stock of Green Endeavors, Inc. (OTC: GRNE) from AmeriResource Technologies, Inc (OTC Bulletin Board: AMRE), in exchange for the issuance of 150,000 restricted shares of Nexia's Series C Preferred Stock with a stated value of $5.00 per share. GRNE holds 13 million shares of BizAuctions, Inc. (OTC: BZCN) with a market value of approximately $950,000 and convertible debt of $171,000. GRNE is now a majority owned subsidiary of Nexia. Nexia has plans to spin-out its Landis Lifestyle Salon operations into the publicly traded Green Endeavors, Inc. (OTC: GRNE).
President of Nexia Holdings, Inc., Richard Surber, commented, "The acquisition of GRNE is a winning situation for all parties. Existing shareholders of Nexia stand to gain a stock dividend in GRNE directly, which not only immediately adds to shareholder value but provides an incentive for Nexia shareholders to remain long-term holders. GRNE will be able to supplement the cash needs of our salon operations, while AMRE will be able to streamline its operations and will remain a minority holder in GRNE and Nexia. GRNE shareholders will own part of a fast-growing salon operation with ambitious growth plans, which Nexia believes will generate over $2.2 million in gross revenues in 2007."
"BZCN shareholders may benefit through entering into a strategic alliance with Nexia's wholly-owned subsidiary Gold Fusion Laboratories, Inc., owner of the Black Chandelier retail brand. The Black Chandelier clothing operation will gain access to a popular channel to sell excess inventory through BZCN's online auction platform," added Surber.
Delmar Janovec, CEO of AMRE, said, "I am very impressed with Nexia's operations. This transaction should provide significant value to AMRE's shareholders in the form of increasing the value of its remaining GRNE shares as well as being a groundfloor investor in Landis salons and Nexia's newly aligned operations. I have confidence in Richard Surber and his team to grow and create shareholder value for everyone involved."
Landis is an independently operated salon that exclusively sells and uses AVEDA(TM) branded products. According to Aveda.com, 89 of America's top 200 fastest-growing salons/spas are part of the growing AVEDA(TM) network. Matthew Landis, founder and head stylist of Landis, said, "Our intention is to use our new public vehicle to roll-up additional salons that sell AVEDA(TM) products, and potentially other environmentally conscious health and beauty companies. The explosive growth in organic, natural skin and hair care is a trend taking over the world, and with additional access to capital, we can accelerate our growth. We are considering acquiring numerous established salon operations in the Greater Salt Lake City Area and have discussed creating franchises for the Landis Salon operation that could lead to a national expansion."
Richard Surber and his staff are currently working on a plan which is expected to include: refilling of a 15c2-11 to regain GRNE's trading on the Pink Sheets, obtaining an SEC peer review audit, an offering document to raise additional capital under Regulation D, the eventual filing of a registration statement with the Securities and Exchange Commission and distributing stock as a dividend or as a pro-rata spin-off to Nexia shareholders.
About Nexia Holdings Inc.
Nexia Holdings Inc. (OTC Bulletin Board: NEXA), headquartered in Salt Lake City, Utah, is a diversified holdings company with operations in health & beauty, fashion retail and real estate. The Company has been acquiring undervalued properties in the Salt Lake City area since the early 1990s. Nexia owns a majority interest in Landis Lifestyle Salon, http://www.landissalon.com, a hair salon built around the world-class AVEDA(TM) product line. Through its Gold Fusion Laboratories subsidiary, Nexia owns the innovative retail and design firm Black Chandelier and its related brands. Black Chandelier is expanding nationwide, and currently operates four retail locations and online operations at http://www.blackchandelier.com. For more information, visit http://www.nexiaholdings.com and http://www.richardsurber.com.
Nexia strongly encourages the public to read the above information in conjunction with its Form 10-KSB for December 31, 2006 and 10-QSB for the quarter ended June 30, 2007. Nexia's disclosures can be viewed at http://www.nexiaholdings.com and http://www.sec.gov. This press release contains forward- looking statements that are based on a number of assumptions, including the successful completion of the marketing plans and expansion of salon operations in a short period of time. The above statements further assume that Nexia can obtain sufficient capital to execute expansion plans through outside investments. Nexia's assumptions are further contingent upon Nexia being able to properly staff its additional locations. There are no assurances that such assumptions will prove correct. These forward-looking statements involve a number of risks and uncertainties, including an expectation of substantial increase in sales. The actual results that Nexia Holdings may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.
FOR MORE INFORMATION, CONTACT:
Richard Surber, President
Nexia Holdings, Inc.
801-575-8073 x 106
For Investor Relations:
OTC Financial Network
|SOURCE Nexia Holdings, Inc.|
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