Contact Information: Investor Relations Contact: Hawk Associates, Inc. Frank N. Hawkins, Jr. or Julie Marshall Phone: (305) 451-1888 Email: Email Contact
Providential Holdings to Help Take Nanjing Rhine Pharmaceutical Technology Public in the U.S.
Providential to Arrange $5M to $10M in Expansion Financing
| Source: Providential Holdings, Inc.
LOS ANGELES, CA and NANJING, CHINA -- (MARKET WIRE) -- November 29, 2006 -- Providential Holdings,
Inc. (OTCBB : PRVHE ) (German Stock Exchanges: PR7, WKN 935160), a provider
of international advisory services specializing in mergers and
acquisitions, announced today an agreement with Nanjing Rhine
Pharmaceutical Technology, Inc. (Rhine) to help take the company public in
the United States. Providential will also arrange $5 million to $10 million
in financing to expand Rhine's production facilities. In exchange,
Providential will receive stock and/or cash from Rhine
(www.rhinepharma.com). Final terms will be agreed upon prior to the signing
of a business consulting agreement.
Rhine is a leader in the synthesis of high purity compounds for the
biotechnology and pharmaceutical industry. Rhine has nine patents -- six
Chinese and three international. The company is located in Nanjing's High
Technology Industrial Development Zone in the province of Jiangsu, China.
This area is China's premier biotech/pharmaceutical cluster. With emphasis
on pharmaceutical synthesis including design, discovery and development of
intermediary medical goods, Rhine has extensive back orders from major
firms in the U.S., United Kingdom, EU, and China. Merck has been one of
Rhine's frequent buyers.
Rhine's projected sales profit margins in 2007 are placed at over 50% and
when restated for R&D costs that are expensed, the past profit margins are
in line with these projections. The company, which is profitable and
expects to post revenue of approximately $1.6 million in 2006, is debt free
and shows a small capital surplus on its balance sheet. The company said
that with an infusion of capital to expand production capacity, it expects
net revenue to exceed $20 million and could potentially triple to over $60
million by 2008.
Shirley Zhu, Rhine's CEO, said, "Providential will help us realize the
benefits of taking Rhine public in the United States either through an
initial public offering, merger, reverse merger or a spin-off arrangement.
We are grateful to have assistance from a company with expertise and
capabilities in this area."
Chairman and CEO Henry Fahman said, "Rhine is an ideal candidate to go
public on Wall Street. The company is not only strong financially, but it
is extremely well positioned to benefit from its business relationships
with Merck and other major Western pharmaceutical companies facilitated by
a strong global network of strategic distribution channels. The management
team is particularly strong with a wide range of pharmaceutical expertise
and strong educational backgrounds including a number of Ph.D.s and
qualified engineers. Going public in the United States will provide the
company with access to capital to fund expansion and will provide investors
with an excellent opportunity to participate in China's rapidly growing
pharmaceutical industry."
Fahman added, "We are in active discussions with other companies in Vietnam
and China that are seeking to go public in the U.S. We expect to announce
more agreements like this one in the near future."
About Providential Holdings, Inc.
Providential Holdings and its subsidiaries engage in a number of diverse
business activities, the most important of which are M&A advisory services
and independent energy. The company acquires and consolidates special
opportunities in selective high-growth industries to create additional
value, acts as an incubator for emerging companies and technologies, and
provides financial consultancy and M&A advisory services to U.S. and
foreign companies. For more information on Providential Holdings and its
subsidiaries, visit http://www.phiglobal.com. As part of its activities in
Vietnam, Providential has been hosting seminars in conjunction with the
Nasdaq Stock Market, the Vietnamese Chamber of Commerce and Industry and a
leading U.S. investment-banking firm to help Vietnamese companies go public
and raise capital through the U.S. financial markets.
A profile for investors can be accessed at
http://www.hawkassociates.com/prvhprofile.aspx.
For investor relations questions regarding Providential, contact Frank
Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail:
info@hawkassociates.com, or visit http://www.americanmicrocaps.com or
http://www.hawkassociates.com
Safe Harbor: This news release contains forward-looking statements that are
subject to certain risks and uncertainties that may cause actual results to
differ materially from those projected on the basis of such forward-looking
statements. Such forward-looking statements are made based upon
management's beliefs, as well as assumptions made by, and information
currently available to, management pursuant to the "safe-harbor" provisions
of the Private Securities Litigation Reform Act of 1995.