9/22/99 - Beacon Light and Niphix End Agreement; Beacon Light Expands Core Business
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HARTFORD, Conn., Sep 22, 1999 (BUSINESS WIRE) -- Hans Lodders, Chairman of the Board and Jerry Gruenbaum, President of Beacon Light Holding Corporation (OTC-BB:BLHGE) announced today that after final evaluation, the Board of Directors of Beacon Light and the President of Niphix, have decided to end their previously announced agreement. Both Niphix and Beacon Light have enormous potential. However, both companies are decidedly different in character and needs. The required financial resources for the Niphix agreement, especially the operational capital for Niphix International, proved after further study, to be potentially limiting to Beacon Light's core business growth and related acquisition plans.
After the economic downturn in Asia which has bottomed out and is in gradual recovery, new attractive business opportunities became available to Beacon Light, especially the privalization drive of state owned companies in China. In view of these attractive investment opportunities in Asia, which are more in synergy with Beacon Light's business building strategy, the Board of Beacon Light has decided to dynamically expand and structure their strategic core business, being consumer products and intermediate products development, manufacturing, and wholesale distribution on a global basis.
Niphix will pursue a splendid future separate from Beacon Light, while Beacon Light keeps a minor shareholder interest in Niphix. Both companies wish each other success in their future endeavors.
Beacon Light further announced that their subsidiary Wellux Industries Ltd. (Hong Kong) established a new company in joint venture with the publishing group Dimensions Holding Asia Ltd. The new company in which Wellux holds a 50% interest, is named "Kiss Mailorder". Kiss Mailorder Ltd. will be the printed media mailorder and internet arm of Wellux, for the direct marketing and sales of Wellux originated products.
Beacon Light further announced that it has purchased for 2.5 million restricted shares of Beacon Light a forty-nine (49%) percent interest in Klick, Ltd. Klick Ltd. located in Hong Kong, does source, design and manufacture high quality plastic household products, as well as household electronic, cutlery and cookware products. Klick's clients consist of wholesalers, importers, distributors, department stores, retail chains and direct marketing companies in Europe and the Americas. For the prior year, Klick posted sales of $10 million USD, and a net profits after taxes of $400,000 USD. Klick projects sales for next year to be in excess of $18 million USD and a net profit in excess of $1.4 million USD. The Company has an option for the next 120 days to purchase the remaining fifty-one percent interest in Klick.
Beacon Light has stated that its audited financials are nearly completed. That's its audited financials for its Hong Kong operating subsidiary Wellux Industries Limited for fiscal year ended June 30, 1999, including its Holland subsidiaries Wellux Holland B.V. and V.J.M.A. Roosen had a 1,727,296 HK$ net profit after taxes on sales of 20,168,853 HK$.
Safe Harbor Disclosure
This Press Release contains or incorporates by reference "forward-looking statements," including certain information with respect to plans and strategies of Beacon Light Holding Corporation. For this purpose, any statements contained herein or incorporated herein by reference that are not statements of historical facts may be deemed to be forward-looking statements. Without limiting the foregoing, the word "believes," "anticipates," "plans," "expects", "enhanced" and similar expressions are intended to identify forward looking statements. There are a number of important factors that could cause actual events or actual results of Beacon Light to differ materially from these indicated by such forward-looking statements.
Copyright (C) 1999 Business Wire. All rights reserved.
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CONTACT: Beacon Light
Hans Lodders in Hong Kong
852/2331-2160
or
Jerry Gruenbaum, 860/249-7008
WEB PAGE: businesswire.com
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