MARINA DEL REY, Calif.--April 1998-- Business Report
1. Business Summary
Sara Hallitex Corporation ("Sara" or the "Company"), an Oklahoma corporation, implemented a new business philosophy and plan in November 1996 with the express purpose of acquiring or investing in emerging niche market companies, and or taking an equity participation position in certain projects. Sara will pursue business opportunities across a wide spectrum of industries and markets including, but not limited to, sports, entertainment, environmental, energy, mining, technology, and communications.
Originally incorporated as Rebel Energy Company in 1980 did its first acquisition and became Sara Environmental Incorporated in 1990, principally as an EPA regulatory compliance reporting consulting firm. In November 1996 the company implemented its new business philosophy and changed its name to Sara Hallitex Corporation. Sara Hallitex Corporation moved all of its environmental business and properties through a majority owned subsidiary, ProTerra, Inc.
As approved by a majority of stockholders in November 1996, the company has completed the acquisition of certain sports and entertainment assets, an International Mining Company, and incorporated ProTerra, Inc. a new environmental subsidiary. The company also formalized the necessary relationships within the investment banking and project financing communities to proceed in executing Sara's business new plan.
2. Sara-IPO-Dividend Program (‘SIPOD')
With the National Association of Securities Dealers (‘NASDAQ') and the Securities Exchange Commission (‘SEC') clamping down on the fraud and other problems with small private companies going public by merging with empty shell companies traded on the OTC bulletin board and the pink sheets a new program was created by Mr. Garrett Krause, president and CEO of Sara Hallitex Corporation, by which a private company can go public in a relatively short period of time and avoid the tremendous pitfalls associated with these so called shell deals and also the expense and time consuming details of a direct IPO from a major securities firm.
Therefor a program was created in which Sara acquires an equity percentage in the potential public company and brings the company under its protective family of companies as a subsidiary. Sara then brings forward financing, management and other services needed in order to incubate the company until it is ready to be spun-out as a newly traded Nasdaq public company. Sara will position and protect these often-young companies through the pitfalls of being a new public traded company. The program will be know as the SARA-IPO-DIVIDEND Spin-out Program or also known as ‘SIPOD'
3. Corporate Subsidiary Holdings.
Sara Hallitex Corporation (Nasdaq/bb:SHAL), headquartered in Marina Del Rey, California, is a publicly traded venture capital firm. All acquisitions and corporate holdings under Sara Hallitex Corporation are being financing, incubated and prepared to enter the Sara-IPO-Dividend Program.
The Company currently holds a controlling interest in the following companies:
Trillium Communications, Ltd. (‘Trillium') a Los Angeles based Entertainment Company.
ProTerra, Inc. An international environmental company.
Janus Enermining, Inc. An international Energy, Mining and Natural Resource company.
Sara's management initially will play a strong role in the daily operations and project development activities of all its subsidiaries and projects. Daily involvement will continue until such time as the companies are mature, new key executives are added, and the company is ready to proceed forward with a Sara-IPO-Dividend Distribution Program.
A. Trillium Communications, Ltd.
Trillium, a Nevada corporation, is a Los Angeles based Entertainment Company with interests and property rights in the sports and entertainment industry. Niche market services will be provided for clients and Trillium's own in-house projects through a number of subsidiaries and divisions.
Sara currently provides management and financial services assistance to Trillium's daily operations. However, Trillium has its own business philosophy and plan, separate and distinct from Sara. Trillium expects to develop, manage, and operate each of its subsidiaries as individual revenue generating business lines. To understand more about Trillium and its corporate structure and subsidiary companies please refer to the Trillium Communications Business Report.
Trillium is not a venture capital firm, although it may pursue related communications, sports and entertainment acquisitions conducive to further growth and increased market share as appropriate.
As previously announced Trillium Communications, Ltd. will spinout to its shareholders through the SIPOD Program in 1998 and will operate as an independent publicly traded Entertainment Company.
B. ProTerra, Inc.
ProTerra, Inc., a Nevada corporation, incorporated in June 1997, is a majority owned private subsidiary of Sara. ProTerra retains the patent rights (U.S. Patent Number 4,776,138), formally held by Sara Environmental Incorporated, for buried vaults for underground optical fiber systems. ProTerra will conduct market research, competitive analyses, and other associated studies to determine the technology development, sales, distribution, and overall economic feasibility to bring a "Controlled Environmental Vault" product to the telecommunications market place. ProTerra is currently working on global environmental projects involving the cleanup and treatment of litter and blood in the poultry business as well as a hydrocarbon soil remediation program.
ProTerra's main growth and business concept is to pursue merger, acquisition, or project joint venture opportunities to develop further revenue-generating divisions and projects. Sara, initially, will provide ProTerra the capital fund raising, and specialized professional staff assistance necessary to pursue each project. ProTerra begins operations focusing on emerging environmental protection technologies on a worldwide basis as a principal source of new business generation.
C. Janus Enermining, Inc.
Janus Enermining, Inc. (‘Janus')was incorporated in 1994 for the express purpose of researching, consulting and acquiring or investing in energy, mining and resource projects worldwide.
Janus begins operations with the following acquisition:
The Carolinas and Piedra Amarilla 41 Mining Properties in Chile (See Press Release dated April 7, 1998),
Two other projects and mining opportunities currently in final negotiations.
Sara Hallitex has announced on in a press release dated March 31, 1998 that Janus Enermining, Inc. will be immediately spun out under the Sara-IPO-Dividend Program. Sara will retain a significant stock position in Janus after this dividend is completed.
4. Sara's Founder, Leader and CEO
Garrett Krause, President and Chief Executive Officer
Garrett Krause, President and CEO, is responsible for overseeing the completion of the company's reorganization, implementation of Sara's business plan, execution of the company's executive search program, and the development of all subsidiary operations. Mr. Krause has significant experience and expertise in the investment banking industry, specializing in helping small emerging growth companies in public shell mergers, corporate mergers and joint ventures, public relations with brokers and investors, stock promotions, and other related public corporation business requirements and activities. Mr. Krause's successful track record over the past ten years in the development and support of public companies provides Sara with a significant asset as it emerges from its reorganization.
5. Industry Profile
Sara Hallitex Corporation is a venture capital firm. As such, the company will pursue diversified business opportunities across a wide range of industries. Initially Sara will focus on sports, entertainment, environmental, technology, and communications projects. Details of the industries the company begins, and expects to conduct business in, is provided in the business plans of each specific subsidiary.
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6. Future of Sara Hallitex Corporation and SIPOD Program
Sara Hallitex Corporation since 1996 has acquired new assets and has reduced significant debt in order to position itself to execute its new business philosophy.
Its current operations as a public venture capital firm with three current exciting subsidiaries and a number of potential acquisitions being negotiated.
Sara Hallitex Corporation plans to spin-out under the SIPOD program five new exciting Nasdaq public companies in 1998 with plans to spin-out a minimum of another five Nasdaq companies each year thereafter in order that our shareholders can benefit in each exciting company holding an investment in Sara Hallitex Corporation stock.
7. Company Address and Contact Information
For more information on Sara Hallitex, watch for the grand opening of the Sara Hallitex World Wide Web site, to be launched in April at www.SaraHallitex.com.
For additional information please contact:
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