Message #33 From:
NewsBot Date: October 16, 2006 05:30:00 AM
HESG News Health Sciences Group Signs LOI with Specialty Tea and Food Company Kalahari(R) Limited
LOS ANGELES--(BUSINESS WIRE)--Health Sciences Group, Inc. (OTCBB:HESG), provider of innovative health
and wellness products, announced it has signed a letter of intent to
acquire the business and assets of Kalahari®
Limited, a specialty tea and food company whose products are sold in
over 5,000 stores nationwide. Kalahari commands a leading share of the
nation’s Red Tea market.
The acquisition would be the first under the leadership of Health
Sciences Group’s new chief executive officer
Stuart Gold, who is known for his role in helping to reinvent the
specialty tea experience in America and for his writings and views on
building successful brands.
“With research touting its high level of
antioxidants and related good-health benefits, I believe red tea is
poised for mainstream consumer acceptance and will become the next hot
tea trend,” says Gold, who plans to redesign,
renew and expand the product line, as well as open new marketing
channels and licensing opportunities. Studies show that some of the
antioxidants found in Rooibos (pronounced ‘Roy-boss’),
commonly referred to as Red Tea, may protect against cancer, heart
disease and stroke. According to a report by the Sage Group, a market
research firm, the U.S. tea market is valued at $6.8 billion and is
expected to reach $10 billion by 2010. Of that, specialty teas, which
include Red Tea, account for $1.5 billion, with sales projected to grow
at a rate of 20% annually.
Pursuant to the terms of the non-binding letter of intent, the
consideration to the sellers for the purchase of Kalahari’s
business and assets consist of shares of HESG common stock to be paid
subject to an earn-out schedule over a period of three years. The letter
of intent provides for an anticipated closing date of November 30, 2006
and is subject to certain conditions, including the company obtaining a
minimum of one million dollars in financing, satisfaction of due
diligence requirements and other customary closing conditions generally
required for a transaction of this type. There can be no assurance that
the acquisition will be consummated.
About Kalahari, Limited
Kalahari (www.KalahariLtd.com)
offers healthy products that are Fuel for Life’s
Safari. Kalahari teas, bottled iced teas and Fruit Trekker®,
100% fruit energy bars, are sold in over 5,000 supermarkets, natural
food stores and specialty retailers nationwide.
About Health Sciences Group, Inc.
Health Sciences Group is dedicated to developing and acquiring unique
and innovative products that support and enhance a "healthstyle" with a
focus on nutrition, wellness and functional well-being. For more
information, visit www.HealthSciencesGroup.com
This release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Act of 1934 that are based upon current expectations or
beliefs, as well as a number of assumptions about future events.Although
the Company believes that the expectations reflected in the
forward-looking statements and the assumptions upon which they are based
are reasonable, it can give no assurance that such expectations and
assumptions will prove to have been correct.The reader is
cautioned not to put undue reliance on these forward-looking statements,
as these statements are subject to numerous factors and uncertainties,
including without limitation, the independent authority of the special
committee to act on the matters discussed, the successful negotiation of
the potential acquisition and disposal of transactions described above,
successful implementation of the company's business strategy and
competition, any of which may cause actual results to differ materially
from those described in the statements.In addition, other
factors that could cause actual results to differ materially are
discussed in the Company's most recent Form 10-QSB and Form 10-KSB
filings with the Securities and Exchange Commission.
