BRIARCLIFF MANOR, N.Y., March 5 /PRNewswire-FirstCall/ -- SETO Holdings, Inc. (Pink Sheets: SETO) announced that it signed a Letter of Intent under which it agreed in principle (1) to issue shares of its Common Stock to acquire 100% of the capital stock of Advanced Hearing Centers, Inc. ("AHC"), a Maryland corporation which provides hearing services and retails hearing aids from 11 locations in Maryland and one in Virginia, and (2) to sell all of SETO's current businesses, i.e., industrial ceramics fabrication and contract manufacturing, to Eugene Pian, SETO's President, in exchange for all the shares of SETO Common Stock he owns.
At closing, Mr. Pian's would resign as an officer and director and cease all affiliation with the public company, whose name would be changed to Lotus Holdings, Inc.; Sanjay Srivastava, Lotus' founder and CEO, would own 90% of the outstanding Common Stock of the public company and he would become President and CEO of the public company; and there would be issued and outstanding 77,923,120 shares of the public company's Common Stock, of which the public shareholders would own 7,792,312 shares, or 10% thereof. Thereafter, the public company would seek to raise additional capital through a private placement, using the proceeds to help finance the expansion if its hearing centers. In addition Mr. Srivastava intends to have the public company make appropriate filings with the Securities Exchange Commission to become subject to the reporting requirements of federal securities laws.
AHC was formed in 2004 by its founder Sanjay Srivastava and has grown rapidly. According to its unaudited financial statements revenues, gross profit and net income have increased steadily, as follows:
Fiscal 2006 Fiscal 2007 Fiscal 2008 ----------- ----------- ----------- (unaudited) (unaudited) (unaudited) Revenues $1,560,229 $2,723,916 $3,083,056 Gross Profit 1,061,658 1,985,280 2,118,275 Net Income 3,812 105,654 108,715
Forward-Looking Statements: Statements in this new release regarding future financial and operating results, future expansion and growth, opportunities for the public company and any other statements about its future expectations, beliefs, goals, plans, or prospects constitute forward-looking statements within the meaning of the private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "will," "believes," "plans," "anticipates," "expects," "estimates," and similar expressions) should also be considered to be forward-looking statements, There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: limited operating history, need for future capital and economic conditions generally. Forward-looking statements are based on the beliefs, opinions, and expectations of management at the time they are made, and the public company does not assume any obligation to update its forward-looking statements if those beliefs, opinions, expectations, or other circumstances should change.
|SOURCE SETO Holdings, Inc.|
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