Healthy Planet Products Announces Completion of Acquisition.
--Acquired product lines produced in excess of $1 million in
revenues in 1998; Acquisition opens new channels of distribution
as well as leveraging current channels--
In a move to expand its growing environmentally conscious product offerings, Healthy Planet Products, Inc. (AMEX:HPP) announced that on May 4, 1999 it completed the acquisition of The Evergreen Group(TM) product line from KT Holdings, Inc.
The acquisition consisted of the business, assets, and The Evergreen Group(TM) trade name formerly marketed by KT Holdings.
"This acquisition supports Healthy Planet Products' strategy of being a multi-product, multi-distribution channel marketer of environmentally and socially responsible products. We have seen that a growing number of adults and children are interested in products which serve to educate and better us and our environment. The talented designers at KT Holdings have created in The Evergreen Group(TM), a product line which is a perfect fit with ours and we feel we can add greater value and exposure to the products through our distribution strategy," stated Mr. John Winfield, chairman of Healthy Planet Products.
The Evergreen Group(TM) product lines, which include adoption kits, educational games, activity kits and gift items, are based on pro-active consumer education about the conservation of endangered animals. These product lines are associated with, and help to support, various conservation groups such as Caribbean Conservation Corporation, Earth Island Institute, Hornocker Wildlife Institute, Institute of Range and the American Mustang, International Wildlife Coalition, Nature Conservancy, The Raptor Center, Wolf Education and Research Center and Yellowstone Grizzly Foundation.
The adoption kits, which are a primary component of The Evergreen Group(TM) product line, are marketed primarily under the trademarks Friends of the Forest(TM), Friends of the Ocean(TM) and Friends of the Environment(TM). These kits are sold through multiple channels including specialty retail and gift stores nationwide, print catalogs, the Internet, and directly to consumers via direct mail. The typical adoption kit is comprised of: a large 24" x 36" poster of the sponsored species; a personalized certificate; an educational brochure about the species; a registration card that entitles the sponsor to a free 1-year subscription of a quarterly newsletter; and information and data on the particular animal sponsored. Adoption kits are sold at a suggested retail price of $19.95.
Healthy Planet Products acquired the KT Holdings assets for $250,000 in cash paid at closing and the delivery by the Company of 292,260 callable Common Stock Purchase Warrants, of which 146,130 warrants are exercisable at $2.00 per share and 146,130 warrants are exercisable at $2.50 per share. The Warrants are entitled to limited registration rights, including piggyback rights and a demand registration right commencing April 30, 2000 through April 30, 2004.
"We feel that the terms of this acquisition are accretive to shareholder value and are in alignment with our long-term plans. In repositioning our company for stable growth, we will continue to evaluate acquisition candidates. Although we expect a loss in the first quarter of fiscal 1999, we remain optimistic. We feel our strategy for product line acquisitions and the addition of new distribution channels will create desired revenue increases. We will elaborate upon our financial results in our upcoming earnings release," added Mr. Winfield.
Information on the Evergreen product line can be accessed, and products purchased, through its web sites: www.friendsoftheforest.org and www.friendsoftheocean.org.
Healthy Planet Products, Inc. is a socially and environmentally responsible company that markets greeting cards, gifts and collectibles featuring The Sierra Club, the Center for Reproduction of Endangered Species (CRES), The Wilderness Society, The Rain Forest Action Network and other environmental organizations. Its products are carried at more than 5,000 outlets nationwide. For further information about the Company, and to purchase its products, please visit its web site at: www.healthyplanet.com.
This press release contains statements which may be considered forward looking statements relating to the Company. Such statements, which represent
management's expectations or beliefs concerning future results, are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from expected results. Factors and possible events which may cause different outcomes include fluctuations in consumer demand or preferences for particular types of greeting cards; fluctuations in demand for the Company's collectibles, adoption kits and other products; changes in customer purchasing plans; consolidation of retailers who purchase product from the Company; and possible fluctuations in production costs. For a discussion of these and other factors that could affect the Company's business and financial results, see information contained in the Company's filings with the Securities and Exchange Commission.
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|Date:||May 11, 1999|
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