SETO moving on this mornings news:
SETO Holdings, Inc. Acquires Hong Kong Batteries Industries Ltd.
BRIARCLIFF MANOR, N.Y.--(BUSINESS WIRE)--Nov. 19, 1999--SETO
Holdings, Inc., (OTC BB:SETO) announced today the signing of an
agreement for the acquisition of Hong Kong Batteries Industries LTD
based in Hong Kong with manufacturing facilities in Shenzhen,
Main Land China.
Mr. Gene Pian, SETO's President said, " Having additional
manufacturing capacity with a much broader line of products for the
Telecommunications, Computer, Industrial Tools and automotive
industries will enable SETO to compete for large volume orders for
major distributors and OEM's, while offering more products on the SETO
E MALL e commerce site.
SETO reported that Hong Kong Batteries forecast for the current
year is revenues of $2.5 million USD and a profit of $130,000. The
audited net assets as of Nov. 15 1999 are $482,000. The agreement
includes a profit guarantee from Hong Kong Batteries of $300,000 USD
net profit and minimum sales of $3.0 million for the year ending Jan.
31, 2001. The purchase price is 2 million shares, no cash. The terms
are 1,500,000 restricted shares to be issued immediately and an
additional 500,000 restricted shares after the profit guarantee is met
for the year ending Jan. 31, 2001.
Mr. Pian also said, " When consolidating SETO Holdings and Hong
Kong Batteries for year ending Jan. 31, 2001 the projections are $10.4
million in sales and $1.1 million net profit. Total shares outstanding
will be 13.9 million with an estimated $.08 EPS.
The Company also reported that the Huanyu acquisition has been
canceled due a number of inconsistencies found during the due
diligence and their changes as outlined in the MOU, which would have
resulted in an unacceptable dilution to the present shareholders. They
also required an immediate cash infusion and a multi million dollar
investment for a startup of a product line that is being replaced with
new technology.
As previously reported many times, SETO has a mission and goal to
build a technology driven company with a strong Internet presence that
generates profits and shareholder appreciation in value and to become
a NASDAQ listed company in the near future.
SETO HOLDINGS, Inc., formerly Semicon Tools Inc. has been a
public Company since 1987 and operates as a broad based technical
manufacturer in two major product groupings: Technical products to
industry: inclusive of diamond tools, wafer fab supplies and technical
ceramics. Consumer products: cellular phone batteries. "Safe Harbor"
statement under the Private securities Litigation Reform Act of 1995
Statements contained in this release which are not historical facts
are forward looking statements that involve risks and uncertainties
that could cause actual results to differ from projected results.
Factors that could cause actual results to differ materially include,
among others, economic and political events in or effecting Malaysia,
the Company's dependence on the semiconductor industry and other risk
factors detailed in the Company's Securities and Exchange Commission
filings.
Contact for Investor Relations: LaGuardia GFS call at toll
free 1-800-292-1361 or email to: web site: www.TwoTrades.com or
www.DosComercios.com Company web sites:www.SETOHOLDINGS.com
www.stidiamond.com www.ecsceramics.com or www.fujifab.com email:
stiandecs@aol.com
--30--eb/ny*
CONTACT: Investor Relations:
LaGuardia GFS
1-800-292-1361
web site: www.TwoTrades.com
www.DosComercios.com
Company web sites:www.SETOHOLDINGS.com
www.stidiamond.com
www.ecsceramics.com
www.fujifab.com
email: stiandecs@aol.com
KEYWORD: NEW YORK INTERNATIONAL ASIA PACIFIC
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS INTERNET HARDWARE
SOFTWARE TELECOMMUNICATIONS
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Nov-19-1999 08:44 GMT
Symbols:
US;SETO
Source BW Business Wire |
