FOUNTAIN VALLEY, CA--(Marketwire - May 11, 2010) - Zealous, Inc., (
The Company has decided to take the subsidiary public and to dividend out the shares of HWP rather than sell the firm over time. The previous transaction would have allowed a 60-month buy-out of HWP and this time frame was too much of an obstacle for some creditors. "Zealous reviewed its option to sell the business over time along with many other ideas and it was clear that a clean and amicable transaction would require an agreement with all our major creditors and stockholders. The Company has a few creditors that are difficult to deal with and it is our desire to settle with them as soon as possible. The Company believes using HWP as an asset to settle with creditors now instead of a prolonged purchase deal will allow both subsidiaries to move forward independently of one another and deliver the best value to everyone," said Gary Gottlieb, CEO of Zealous, Inc. "The terms of the deal became problematic with the extension of time to pay the Company. We believe this alternative is a better path for our creditors and shareholders while retaining the value of our products and our formulas," Gottlieb explained.
The Company stated it is working with its creditors now on this plan and is seeking an early consensus. Once the creditors have approved the plan, the Company will move to take HWP public and then have shares distributed as soon as legally possible. Details of the plan will be announced once consensus has been reached and the plan finalized.
About Zealous, Inc.
Zealous, Inc. is a holding company that operates through its three subsidiaries, Zealous Interactive, Inc., Health and Wellness Partners, Inc., and Zealous Holdings, Inc. Zealous Interactive, Inc. is a multimedia company specializing in online media distribution and content management. The flagship enterprise of Interactive is its adult portal and social network, and features its print and online publications and over 300 URLs and websites. Health and Wellness Partners, Inc. is a distributor of health, energy and vitality products that promote wellness in body, mind and spirit. Zealous Holdings, Inc. was a financial services holding company now discontinued and involved in Chapter 7 dissolution.
Forward-Looking Statements
This press release contains certain forward-looking statements. These forward-looking statements can generally be identified as such because the context of the statement will include words such as Zealous, Inc. "plans," "expects," "should," "believes," "anticipates" or words of similar importance. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. These forward-looking statements are only made as of the date of this press release and Zealous, Inc., does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Contact Information:
Contact:
Gary Patterson
Investor Relations
714-369-2933