Hairmax International Begins Acquisition Talks with Major Chinese Company FRIDAY, JULY 16, 2004 1:17 PM - BusinessWire
HRMX 0.06 +0.01
FORT LAUDERDALE, Fla., Jul 16, 2004 (BUSINESS WIRE) -- Hairmax International Corp. (HRMX) management announced this morning that representatives of Hairmax International Inc. are presently in discussion for a partnership or acquisition through its Chinese development office. The discussions are being coordinated by Mr. Weihang Cai of the local office for Hairmax International.
This initial discussion with Xinbiaobang Entertainment Inc. is focused on a partnership or acquisition; the company is seeking exposure through the United States stock market, and if an agreement is reached, it is expected to have a positive effect on the parent company. Further announcements are expected, as the discussions continue.
Mr. Weihang Cai, representing Hairmax International, released the following statement:
"Xinbiaobang Entertainment Inc. is located in No.35 WuZhiShan Road, Haikou, Hainan, China, which was established in Feb. 1996. It has three major business divisions, including a Resort and Spa Hotel, Beauty parlor, Beautician & Hairdresser College, and has over 1,000 employees and 50,000 square meter business area. The sales of Xinbiaobang Entertainment Inc. are over RMB: 50 million per year. Xinbiaobang resort and spa which was established in 2003 in Haikou, has more than 30,000 square meter business area and is one of the best entertainment places in Hainan. It provides all kinds of relaxation services and equipment, like spa, body excise and beauty salon. It services over 1,300 people per day. In May 2002, with permission of the health department of Hainan, Xinbiaobang Entertainment Inc. established a Healing & Recovery center. It hired more than 300 director doctors, all level doctors. By providing standard service, it has become a business leader in Hainan. Xinbiaobang attracts guests by their appealing environment, professional skills & spa services, and has become the best leisure center in Hainan. Xinbiaobang Beautician & Hairdresser College is also another successful business. There are 2,276 qualified beauticians and hairdressers that have graduated from this college, and some of them hired by Xinbiaobang beauty salons to support its business. In 2003, Xinbiaobang Entertainment Inc. has opened 8 branches in Haikou, Guangzhou, Jinan, Danjiang, Dongguan, Beijng, Shanghai, 7 cities in China, which brings millions of sales increase to Xinbiaobang Entertainment Inc. Its total contribution to charities is more than RMB: 52,650. Xinbiaobang services its guests by providing a perfect environment, professional skills, and honest services. So it is always named "clients trust" business in Hainan. Because of its reputation, Xinbiaobang Entertainment Inc. has established a long-term relationship with the Hainan government. It has been chosen as a credible business for several years. Xinbiaobang regards the company's values as effective service, customer responsiveness, and long-term relationships."
Edward A. Roth, President, commented: "This potential business addition will be a huge success for our company and its shareholders. The Peoples Republic of China is one of the fastest growing areas economically in the world, I commend the representatives of Hairmax International in bringing this huge financial opportunity to Hairmax International. We look forward to continued discussion and negotiation in a successful completion of this deal, subject to approval and due diligence by the Board of Directors of Hairmax International Inc."
Hairmax International, Inc. is a Business Development Company operated pursuant to the Investment Company Act of 1940. It holds various enterprises as investments and seeks to develop companies in which it has an interest; it specializes in business development within the personal services industry. These include the company's existing subsidiaries, as well as future acquisitions of existing businesses that further serve to enhance the company's business operations.
This press release may include statements that constitute "forward-looking" statements usually containing the words "plans," "expects," "believes," "projects," "intends" or similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed by the company with the Securities and Exchange Commission including forms 8k, 10sb, and 10-ksb. These risks and uncertainties include, but are not limited to the following: Company's limited working capital, competitive nature of hair services, consumer spending habits, legal and economic uncertainties, and changes in consumer shopping trends and or availability of financing.
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