busy making sauce
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200k block just hit MAGR ask. ~Rig
WEGI .115 X .13 Bid^tick ~Rig
Heads up on MRAY volume getting real active for this stock. ~Rig
DC, lmao. Theres a 100 on my block.lmao.ADZR is close by also.lol.
~Rig
baby,
My chart says to sell all of your HBSL shares to Rigatoni for 1.46 and the IMTS shares for .18.Done deal?
~Rig
WEGI .11 X .12 creeped up this week on that nice news.I think after the long weekend you may see the volume pick up.This will move fast.Check out the earnings pr......
http://biz.yahoo.com/prnews/040210/nytu175_1.html
They are also on the top 100 list of Long Islands top growing companies.
~Rig
Trader/GVTS
I'm by no means a chart expert but it does look good with that crossover.
~Rig
swinging, if good things come and add that nice chart, we could have a great week with it.
~Rig
Trader ~GVTS
Here's why I like it.......50 ma Crossover the 200 ma
petegunn/UNSP
I have no new thoughts on UNSP.I am holding and waiting to see if anything develops from the VanRex relationship.
~Rig
In GVTS .12 ~Rig
In MAGR ~Rig
FSRC .25 X .26 shake IMO. ~Rig
Buzz/SENS That works!!!! ~Rig
Buzz/SENS, hoping for financing news!!! ~Rig
EVSC could be a nice play here folks....
MONTGOMERY, Texas--(BUSINESS WIRE)--Feb. 13,
2004--Endovasc Inc. (OTCBB: EVSC, news), a drug
development company that pioneers new cardiovascular
and metabolic drug therapies, announced today an
update on the Company's civil lawsuit against J.P.
Turner & Co. LLC et al Inc., Number 02-CV-7313, in the
United States District Court, Southern District of New
York. The complaint is for damages as a result of an
alleged fraud and stock manipulation. The Company is
seeking monetary damages in excess of $200,000,000.
According to Dwight Cantrell, CFO of Endovasc, "Our
attorneys report the present suit against J.P. Turner
& Co., LLC; CCM Group, LLC; LH Financial Services
Corp.; Laurus Master Fund, Ltd.; Laurus Capital
Management, LLC; Keshet Fund, L.P.; Keshet, L.P.,
Keshet Management, Inc.; Talbiya B. Investment Ltd.;
Nesher, Ltd.; Alon Enterprises Ltd.; Balmore Fund
S.A.; Libra Finance S.A.; Celeste Trust Reg.; Patrick
Power; Arie Rabinowitz; Abraham Grin; David Grin;
Eugene Grin; John Clarke; Thomas Hackl; Francois
Morax; Gisela Kindle; Matityahu Kaniel; Seymour Braun;
and Shmuel Lmakias is pending outcome of decisions on
motions now before Judge Preska. Discovery in the case
is stayed pending outcome. Further, our attorneys
report the scope of the scheme is more widespread than
originally contemplated. They anticipate filing
actions on our behalf against other defendants who
participated in the scheme resulting in damages to
us."
According to Endovasc's attorney, James W. "Wes"
Christian, "The theory of our case has been adopted by
other companies that have experienced similar losses
from 'death spiral' conduct by lender/investors. This
spread of other cases and criminal investigations by
the attorneys general or U.S. Attorneys of several
states has been fueled by the civil enforcement
actions and criminal complaint against Thomas Badian,
his brother Andreas, and various SEC actions. Mr.
Thomas Badien is currently believed to be a fugitive.
The conduct of those defendants is the same type of
conduct we believe our defendants have engaged in."
Attorney's John O'Quinn and James W. "Wes" Christian
represent several other bulletin board companies in
their claims for damages against alleged stock
manipulators. The cases claim alleged SEC 10b-5
violations, stock manipulation and fraudulent
misrepresentation by alleged "investors" whose true
intent allegedly was to drive down the company's stock
prices through short-selling in order to receive much
greater amounts of the company's shares when
converting from preferred stock, debenture, or other
convertible provision in financing deals with targeted
bulletin board companies.
About Endovasc
Endovasc, Inc., established in 1996, is an innovative
drug development company with two new cardiovascular
and metabolic drug therapies. Endovasc's mission is to
design the delivery, and release drugs to their
intended targets in an efficient and controlled
manner. Endovasc's lead drug candidates include
Angiogenix™ and Liprostin™. Endovasc also has a stent
coating technology, PROStent™, in pre-clinical trials.
For more information about Endovasc, please visit
http://www.endovasc.com.
Safe Harbor Statement
The foregoing statements are made under the "Safe
Harbor" Private Securities Litigation Reform Act of
1995 and may contain forward-looking statements that
involve risks and uncertainties that may not be
evident at the time of this release.
CONTACT: FOCUS Partners LLC
David Zazoff, 212-752-9445
evsc@focuspartners.com
I cant believe I ate the whole thiiiiiiiiiiiiiiing.>>>>>>
~Rig
~MLHP News & Chart...with 50 ma crossover 200 ma
I have mentioned a few times, if they start selling these vaccinations and their Malaria compound is validated, this can go into the dollars.
Press Release Source: Millenia Hope Inc.
Jacky Quan Joins Millenia Hope
Thursday February 12, 12:47 pm ET
Appointed As Vice-President - Sales For Asia And South America
MONTREAL, Feb. 12, 2004 (PRIMEZONE) -- Millenia Hope Inc., a Biotech Corporation (OTC BB:MLHP.OB - News) (Berlin Stock Exchange:MLF) today announced that Jacky Quan has joined the company as Vice-President - Sales for Asia and South America.
ADVERTISEMENT
Mr. Quan, an international businessman, active in the capital markets for funding of start up companies, has extensive ties and relationships in the Asian marketplace, specifically with the Vietnamese and Chinese communities and the Hispanic markets of the Caribbean and South America.
Mr. Leonard Stella, CEO of Millenia Hope commented, ``We are pleased to have Mr. Quan joining our corporation for his dynamism and his many contacts in Asia and South America. We are at the stage of commercialization of our anti-malarial product, MMH MALAREX(TM), and Mr. Quan's business acumen and relationships will aid in elevating Millenia to greater heights.''
About Millenia Hope
Millenia Hope is in the business of developing innovative treatments and quality medication products that will lead to healthier lives. The company's people are committed to research and development to meet unmet medical needs globally and to bring hope through healthcare solutions.
Safe Harbour Statement
Certain statements made in this release may contain language describing the plans, goals, strategies, intentions, forecasts and expectations of Millenia Hope that may be referred to as ``forward-looking statements''. Several important factors could cause actual results to differ materially from those in such forward-looking statements, and Millenia Hope could encounter unanticipated obstacles and delays in developing products, service offerings and markets.
Contact:
Millenia Hope Inc.
Leonard Stella
CEO
Tel: (514) 846-5757
Fax: (514) 935-9758
leostella@milleniahope.com
admin@milleniahope.com
Web site: http://www.milleniahope.com
HTML: http://newsroom.eworldwire.com/wr/021204/10019.htm
PDF: http://newsroom.eworldwire.com/pdf/021204/10019.pdf
Online Newsroom: http://newsroom.eworldwire.com/2184.htm
Logo: http://newsroom.eworldwire.com/2184.htm
--------------------------------------------------------------------------------
Source: Millenia Hope Inc.
Email this story - Set a News Alert
~Chart...
~Rig
~MLHP News & Chart...with 50 ma crossover 200 ma
I have mentioned a few times, if they start selling these vaccinations and their Malaria compound is validated, this can go into the dollars.
Press Release Source: Millenia Hope Inc.
Jacky Quan Joins Millenia Hope
Thursday February 12, 12:47 pm ET
Appointed As Vice-President - Sales For Asia And South America
MONTREAL, Feb. 12, 2004 (PRIMEZONE) -- Millenia Hope Inc., a Biotech Corporation (OTC BB:MLHP.OB - News) (Berlin Stock Exchange:MLF) today announced that Jacky Quan has joined the company as Vice-President - Sales for Asia and South America.
ADVERTISEMENT
Mr. Quan, an international businessman, active in the capital markets for funding of start up companies, has extensive ties and relationships in the Asian marketplace, specifically with the Vietnamese and Chinese communities and the Hispanic markets of the Caribbean and South America.
Mr. Leonard Stella, CEO of Millenia Hope commented, ``We are pleased to have Mr. Quan joining our corporation for his dynamism and his many contacts in Asia and South America. We are at the stage of commercialization of our anti-malarial product, MMH MALAREX(TM), and Mr. Quan's business acumen and relationships will aid in elevating Millenia to greater heights.'
About Millenia Hope
Millenia Hope is in the business of developing innovative treatments and quality medication products that will lead to healthier lives. The company's people are committed to research and development to meet unmet medical needs globally and to bring hope through healthcare solutions.
Safe Harbour Statement
Certain statements made in this release may contain language describing the plans, goals, strategies, intentions, forecasts and expectations of Millenia Hope that may be referred to as ``forward-looking statements'. Several important factors could cause actual results to differ materially from those in such forward-looking statements, and Millenia Hope could encounter unanticipated obstacles and delays in developing products, service offerings and markets.
Contact:
Millenia Hope Inc.
Leonard Stella
CEO
Tel: (514) 846-5757
Fax: (514) 935-9758
leostella@milleniahope.com
admin@milleniahope.com
Web site: http://www.milleniahope.com
HTML: http://newsroom.eworldwire.com/wr/021204/10019.htm
PDF: http://newsroom.eworldwire.com/pdf/021204/10019.pdf
Online Newsroom: http://newsroom.eworldwire.com/2184.htm
Logo: http://newsroom.eworldwire.com/2184.htm
--------------------------------------------------------------------------------
Source: Millenia Hope Inc.
Email this story - Set a News Alert
~Chart...
~Rig
~MLHP News....
As I have mentioned a few times, if this company does what they say they can do and that's vaccinate against Malaria, its going into the dollars IMO...
http://biz.yahoo.com/pz/040212/52539.html
Press Release Source: Millenia Hope Inc.
Jacky Quan Joins Millenia Hope
Thursday February 12, 12:47 pm ET
Appointed As Vice-President - Sales For Asia And South America
MONTREAL, Feb. 12, 2004 (PRIMEZONE) -- Millenia Hope Inc., a Biotech Corporation (OTC BB:MLHP.OB - News) (Berlin Stock Exchange:MLF) today announced that Jacky Quan has joined the company as Vice-President - Sales for Asia and South America.
ADVERTISEMENT
Mr. Quan, an international businessman, active in the capital markets for funding of start up companies, has extensive ties and relationships in the Asian marketplace, specifically with the Vietnamese and Chinese communities and the Hispanic markets of the Caribbean and South America.
Mr. Leonard Stella, CEO of Millenia Hope commented, ``We are pleased to have Mr. Quan joining our corporation for his dynamism and his many contacts in Asia and South America. We are at the stage of commercialization of our anti-malarial product, MMH MALAREX(TM), and Mr. Quan's business acumen and relationships will aid in elevating Millenia to greater heights.''
About Millenia Hope
Millenia Hope is in the business of developing innovative treatments and quality medication products that will lead to healthier lives. The company's people are committed to research and development to meet unmet medical needs globally and to bring hope through healthcare solutions.
Safe Harbour Statement
Certain statements made in this release may contain language describing the plans, goals, strategies, intentions, forecasts and expectations of Millenia Hope that may be referred to as ``forward-looking statements''. Several important factors could cause actual results to differ materially from those in such forward-looking statements, and Millenia Hope could encounter unanticipated obstacles and delays in developing products, service offerings and markets.
Contact:
Millenia Hope Inc.
Leonard Stella
CEO
Tel: (514) 846-5757
Fax: (514) 935-9758
leostella@milleniahope.com
admin@milleniahope.com
Web site: http://www.milleniahope.com
HTML: http://newsroom.eworldwire.com/wr/021204/10019.htm
PDF: http://newsroom.eworldwire.com/pdf/021204/10019.pdf
Online Newsroom: http://newsroom.eworldwire.com/2184.htm
Logo: http://newsroom.eworldwire.com/2184.htm
--------------------------------------------------------------------------------
Source: Millenia Hope Inc.
Email this story - Set a News Alert
~FSRC...
February 12, 2004 12:50
Patented Products, Inventories and World Wide Distribution -- Com-Guard Inc. Talks with Traders Nation
Jump to first matched term
PHOENIX, Feb 12, 2004 (BUSINESS WIRE) -- Traders Nation is pleased to announce that it has completed an interview with Edward W. Savarese, CEO, and Joseph Sigismonti, COO, of Com-Guard.com Inc. (OTCBB: CGUD) and that the interview is available at http://www.tradersnation.com/cgud.shtml.
Savarese and Sigismonti update listeners with current events of the company, which include marketing strategies, licensing of their patented products, worldwide distribution, the concern of growing theft of hardware & software, and the uniqueness of their products, plus much much more.
About TradersNation.com
TradersNation.com is the leader in the smallcap community for providing syndicators and Web site visitors current market trend commentary and delivering that content via an audio program produced live daily, named Traders Nation. Outside markets are also covered with breaking news, interviews of news makers and financial video content, making TradersNation.com the first broadcasting company to encompass the full range of media information products for smallcap investors.
-- Traders Nation is currently syndicated online with 100 sites
carrying the show.
-- Traders Nation can be heard on 1190 AM, an NBC affiliate radio
station in Phoenix during the prime "morning drive" time.
-- Traders Nation is also heard by tens of thousands of end users
via QuoteStream's online financial software.
-- Traders Nation is on a host of Lycos-owned sites including
RagingBull.com with 500,000 unique visitors per month.
-- Traders Nation is on StockHouse.com and Smallcapcenter.com
with 750,000 unique visitors per month.
About Com-Guard.com Inc.
Com-Guard.com Inc. develops and markets a line of software and hardware products for the computer industry that provide enhanced system security for both individual users and network administrators. The company focus is on detection, protection and notification of various security threats. The company provides a group of products, based on its state-of-the-art software technology, Com-Guard(TM), that provides PC users with an extensive set of security measures that address Internet security, file locking and encryption security (including e-mail) and internal facility security.
The rebroadcast 02.12.04 (available at noon EST) of Traders Nation "LIVE" features two segments. The first segment covers the top smallcap stories of the day. The second segment -- Bill Panetta, a professional smallcap trader and partner of Traders Nation, gives our listeners the potential hot stock plays for the day. Stocks covered throughout the show include: CareDecision Corp. (OTCBB:CDED), Innovative Software Technologies Inc. (OTCBB:INIV), Freestar Technology Corp. (OTCBB:FSRC), Denny's Corp. (OTCBB:DNYY) and iBIZ Technology Corp. (OTCBB:IBZT).
Listen: http://www.tradersnation.com/radio.shtml#anchor2
Get a copy of the archive here: http://www.tradersnation.com/store.shtml
SOURCE: Traders Nation
TradersNation.com, Phoenix
Kurt Schemers, 602-265-1270
kurt@tradersnation.com
or
Com-Guard.com Inc., Carlsbad, Calif.
Edward W. Savarese, 760-431-2206
ews@com-guard.com
Customize your Business Wire news & multimedia to match your needs.
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Copyright (C) 2004 Business Wire. All rights reserved.
COM-GUARD.COM INC - CGUD
Price 0.24
Net Change +0.02
Volume (000) 1623
Day High 0.27
Day Low 0.23
as of
02/12/04 18:11 PM EST
~IMTS Read this..........
I am hearing that tomorrow on FOXs' Best Damn Sports Show, they will be showing the Nextel Pavillion and our very own Racing Simulators.
Also,
From 1-2 Eastern time, FOX will be doing a live remote from the Nextel Pavillion.
We are off to the races!
~RIG
~IMTS Read this..........
I am hearing that tomorrow on FOXs' "Best Damn Sports Show", they will be showing the Nextel Pavillion and our very own Racing Simulators.
Also,
From 1-2 Eastern time, FOX will be doing a live remote from the Nextel Pavillion.
We are off to the races!
~RIG
Buzz/UNSP Bottom fisherrrrrrrrrrrrrrrrr.VanRex take us to the promise land!!!
~Rig
APOA .115 X .118 will continue higher IMO. ~Rig
~ALMI time is ticking .13 X .135 Big run coming IMO.~Rig
BUzz, Nice call DYX ~Rig
FSRC .308 X .31 ~HBSL 1.80 X 1.87 8k sinking in ~Rig
GMDP cruzin......... half way to .10! ~Rig
~HBSL
fire, people need to read this thoroughly.I highlighted a few items.This will be an AMEX stock this year IMO.
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001062993%2D04%2D000176%2Etxt&FilePath....
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
February 11, 2004
Date of Report (Date of earliest event reported)
HOUSE OF BRUSSELS CHOCOLATES INC.
(Exact name of registrant as specified in its charter)
NEVADA 000-29213 52-2202416
(State or other (Commission File (IRS Employer
Jurisdiction of incorporation) Number) Identification No.)
Suite #208 - 750 Terminal Avenue,
Vancouver, V6A 2M5
British Columbia, Canada
(Address of principal executive offices)
(604) 713-8052
Registrant's telephone number, including area code
--------------------------------------------------------------------------------
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit Number Description
99.1 Press Release dated January 27, 2004
99.2 Business Development Plan
ITEM 9. REGULATION FD DISCLOSURE
On February 12-13, 2004, our Management team will be attending the 2004 NIBA Conference in Las Vegas. On January 27, 2004, we issued a press release regarding the Conference. A copy of the press release is attached hereto as Exhibit 99.1.
During the NIBA Conference, management will make business summary presentations to the attendees, as well as provide each attendee with an investor relations package consisting of an introductory cover letter, news releases and a business development plan.
Since some portions of the business development plan contain information which may not have been previously disclosed in our filings with the Securities and Exchange Commission, we are filing herewith, in compliance with Regulation FD, a copy of the business development plan as Exhibit 99.2.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HOUSE OF BRUSSELS CHOCOLATES INC.
Date: February 11, 2004 By: /s/ Grant Petersen
--------------------------------------------------------------------------------
Grant Petersen
Chairman of the Board of Directors,
Chief Executive Officer and President
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
HOUSE OF BRUSSELS CHOCOLATES
--------------------------------------------------------------------------------
PRESS RELEASE
HOUSE OF BRUSSELS TO PRESENT AT 2004 NIBA CONFERENCE
Houston, TX – January 27, 2004 – House of Brussels Chocolates (“HBSL” or “Brussels”) (OTC BB: HBSL) is proud to announce the Company’s attendance at the February 2004 NIBA conference in Las Vegas, NV.
HBSL is one of more than 20 companies selected to present their business development strategy to an audience of representatives from more than 60 regional brokerage firms and specialized independent broker-dealers.
To be held February 12-13, 2004 at the MGM Grand Hotel in Las Vegas, the NIBA conference is the ideal setting for HBSL to introduce the new House of Brussels Chocolates to the investment community. HBSL will present its management, business strategy, corporate results and growth plans to its target investment audience. As one of the nation’s premier small cap investing forums, the NIBA conference is designed to facilitate the exchange of information between growing small cap companies and the investment community.
John Veltheer, Vice President, Business Development for Brussels, said, “With Brussels reinvention from a small, but prestigious Canadian specialty chocolate retailer, to that of an International manufacturer and distributor completed, we look at this meeting as an excellent opportunity to introduce ourselves and our company to the exact people that can take us to the next level.” Veltheer went on to say, “The timing of this conference just before Valentines Day couldn’t be any more perfect in that we believe Brussels will be able to make a particularly memorable impact on the representatives of the attending brokerage firms, at a time when chocolate is particularly on most people’s minds.”
About NIBA ( www.nibanet.org )
The National Investment Banking Association (NIBA) was organized in June 1994 as a national association of regional and independent broker-dealer and investment banking firms seeking to improve conditions in their industry, to strengthen the free-enterprise system, and to provide a vital source of information and education to its members and the investing public. Their founding purposes are to facilitate the exchange of information to improve business conditions generally, and with respect to matters relating to corporate finance, syndication and product development, and other aspects of capital formation; to educate and inform business, government, media, academia, and the investing public regarding these matters; to engage in government relations activities to create an informed environment among the legislative, regulatory, and judicial functions of government; and to conduct research and provide statistical programs to aid these various activities. They are dedicated to developing an association of substantial, reputable firms committed to creating a standard of quality that will enhance the reputation of each individual member. NIBA adds to the value of its member firms, their client companies and investors, and the securities industry at large, by hosting the premier forum for small companies seeking access and exposure to regional underwriters and broker-dealers in connection with their capital formation and other financial objectives. In addition, NIBA acts as a focal point for all those seeking to enhance the capital formation environment for small companies.
About House of Brussels Chocolates Inc. ( www.brusselschocolates.com )
House of Brussels Chocolates has manufactured and distributed gourmet Belgian chocolates around the world since 1983. HBSL’s signature product is a "hedgehog" - a molded chocolate design that blends the traditional Belgian symbol of good luck with taste for a strong customer appeal. Most of HBSL’s 100 products are based on its signature hedgehog including the Sonic The Hedgehog™ chocolate bar which is sold under license from SEGA® of America, Inc. Other products in the HBSL line include an assortment of tourist oriented truffles including some made with genuine maple syrup and some with Canadian ice wine, fine quality chocolate bars made in several distinct flavors, a no-sugar-added/low-carbohydrate line of chocolate bars and truffles, and the recently introduced supplement-fortified bars. All of HBSL’s proprietary products have a tried and true track record of customer acceptance and are manufactured in our facilities in Vancouver and San Francisco. In addition to house brands, HBSL creates custom packaging and sizing, as well as private labels.
Safe Harbor: Certain statements in this news release regarding future expectations and plans may be regarded as "forward looking statements" as defined by federal law. Although the company believes such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in
--------------------------------------------------------------------------------
HOUSE OF BRUSSELS CHOCOLATES
--------------------------------------------------------------------------------
reliance on the "safe harbor" protections provided under the Private Securities Reform Act of 1995. They are subject to various risks, including uncertainties regarding timing, and capital availability, as discussed in detail in House of Brussels quarterly and annual reports filed with the SEC.
Contact: John Veltheer
Telephone: 713.960.9903 or 1.800.661.1524
Email: info@hobc.ca
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
BUSINESS DEVELOPMENT PLAN HBSL
--------------------------------------------------------------------------------
CORPORATE SUMMARY
Headquartered in Houston, TX, House of Brussels Chocolates, Inc. (OTCBB: HBSL) is a premier manufacturer of gourmet, high quality Belgian chocolates. With manufacturing plants in Vancouver and San Francisco, HBSL has a production capacity of $35 million in annual revenue.
HBSL's signature product is the chocolate hedgehog, which marries the traditional Belgian symbol of good luck (i.e., the hedgehog) with taste (i.e., chocolate) for a strong customer appeal.
Even though many of HBSL’s 100 products are based on its signature hedgehog, including the recently released Sonic The Hedgehog® chocolate bar – under license from SEGA® of America, Inc., ( Press Release: April 16, 2003 ) our future sales growth is directed towards emerging market trends. In addition to a broad spectrum of products in the Gourmet/Ultra-Gourmet category, HBSL now manufactures a complete line of no-sugar-added/low-carbohydrate line of chocolate bars and truffles and several nutritional supplement bars.
Our clients include Suzanne Somers, Nordstrom, Macy’s, Marshall’s, Costco, The US Army and Navy, and many others. Our products have a long track record of customer acceptance and they are manufactured to the highest standards as evidenced by a number of product and marketing awards. In addition to house brands, HBSL creates custom packaging, shaping and sizing as well as private labels for several major North American retailers – as one would expect from a diversified manufacturer.
From 1983 to 2002, House of Brussels Chocolates was a regional retail chocolate player with fluctuating sales and profitability, despite its established reputation for producing premium products. When House of Brussels Chocolates was acquired in May 2002 and taken public via reverse merger, new Management recognized the need to capitalize on its greatest asset – its products.
In less than two years, HBSL new management team has:
Substantially increased wholesale revenues
Eliminated redundant staff
Simplified and pared product lines
Closed marginal retail operations
Sold profitable retail operations – HBSL now acts as a wholesaler to these operations
Greatly improved manufacturing efficiency and operating margins
Dramatically slashed operating losses
Developed numerous innovative products
Set the stage for profitability
The results for HBSL’s first year of reinvention are compelling. In fiscal 2003 (i.e., the year ended April 30, 2003), HBSL achieved revenues in the amount of $3,046,851 compared to revenues of $2,270,452 for fiscal 2002, representing a 34% increase. However, this does not tell the whole story. As part of HBSL’s restructuring plan, retail sales channels were abandoned in 2003. In line with revised business objectives, HBSL then posted a 134% increase in wholesale revenues for 2003 and brought revenues derived from wholesale operations up to 96% of total revenues, as compared to 55% the year before. ( Press Release: August 7, 2003 )
Emerging as an international manufacturer, HBSL has increased efficiency and capacity and intends to focus on higher margin niche markets such as Gourmet/Ultra-Gourmet, Low-Carb and Supplement-Fortified chocolates. In fact, we foresee such an opportunity in the latter category that we recently incorporated a subsidiary ChocoMed, Inc. (“ChocoMed”) to act as an umbrella company for HBSL’s interest in investigating the use of chocolate as a carrier for dietary supplements, functional foods and pharmaceutical compounds to treat various medical conditions. ( Press Release: February 5, 2004
With our transition phase complete, HBSL is now poised for significant expansion and profitability.
- 2 -
--------------------------------------------------------------------------------
BUSINESS DEVELOPMENT PLAN HBSL
--------------------------------------------------------------------------------
2003 CORPORATE MILESTONES
Maintained agreement with Suzanne Somers as exclusive manufacturer for her Low-Carb chocolates
Obtained 4-year North American licensing agreement with SEGA for Sonic The HedgehogUchocolate products
Initiated US rollout for several product lines
Produced first supplement-fortified chocolate bar for Culinova, Inc.
Created Medical Advisory Board
Acquired the assets and clientele of The Candy Jar, Inc.
2004 (Year-to-Date) CORPORATE MILESTONES
Integrated Candy Jar products and clients into the HBSL structure
Revitalized Truffelinos Brand as a private label for a Major Corporation
Incorporated ChocoMed, Inc. subsidiary for new product development and research
Added Richard Siemens and Dr. William Donovan to Board of Directors
Expanded Medical Advisory Board to 4 members
Appointed Senior Vice President of Sales
2004 EXPANSION PRIORITIES
Increase sales towards goal of achieving 100% utilization of our manufacturing capacity
Aggressively widen all three sales channels – private labels, house brands, and licensing
Further increase both gross and net margins by continuing to increase manufacturing efficiency
Continue to focus on wholesale clients with annual purchasing capacity in excess of $1,000,000
Continue to create, introduce and distribute innovative, high-margin chocolate products
Complete corporate headquarters relocation to Houston, TX
- 3 -
--------------------------------------------------------------------------------
BUSINESS DEVELOPMENT PLAN HBSL
--------------------------------------------------------------------------------
THE MARKET
Market statistics demonstrate the tremendous opportunity to execute our priority list:
Annual chocolate consumption = 3.1 billion pounds
Annual chocolate sales (wholesale) = $8.5 billion
Annual chocolate sales (retail) = $14 billion
Chocolate sales = 55% of the confection industry
1% market share = $85 Million in annual wholesale revenue
ORGANIC GROWTH STRATEGY
HBSL is focused on four types of business development:
New Product Innovation
HBSL is a forward-looking company. As such we moved into the low-carb arena 18 months ago. Then, five months ago, we established a Medical Advisory Board under the guidance of William F. Donovan, MD, to investigate and research the use of chocolate as a carrier for dietary supplements, functional foods and pharmaceutical compounds to treat various medical conditions. ( Press Release: October 13, 2004 ) These are both exceptionally exciting and evolving fields that merit serious investment of capital and resources in order for HBSL to emerge as a market leader.
Private Label Manufacturing, Brand Development and Sales
HBSL is a soup-to-nuts private label manufacturer. From design, packaging, recipes, shapes and logistics, HBSL helps its clients in every aspect of product development in order to best service their own clients. For example, SLC Sweets, a company owned and operated by international spokesperson Suzanne Somers, is HBSL’s largest private label client. Over the last 18 months, HBSL has co-developed nearly 20 new products, all in the exploding low-carbohydrate/no-sugar-added arena. Sold exclusively through the Home Shopping Network and the SomerSweet website (www.somersweet.com) these products are specifically tailored to Suzanne Somers core audience of health and weight conscious women aged 30-50. Other private label clientele include Nordstrom and numerous airlines, cruise lines and hotels.
National Expansion of Established Regional Products
With the recent hiring of well-respected food industry executive Bradley Romens as Senior Vice President of Sales ( Press Release: January 8, 2004 ) HBSL is now expanding distribution of its house-branded chocolate line throughout North America. A single, but clear, example of opportunity lies with Costco. Having done business with Costco (Western Canada Division) for several years and achieving 95%+ sell-through rates, other regional Costco divisions have expressed interest in carrying our time-tested Hedgehog line. Mr. Romens was hired specifically because of his track record for executing distribution expansions.
Manufacturing and Sales under License
Product licensing is a multi-billion dollar global industry. HBSL has capitalized on a small fraction of that business by negotiating a 4-year North American licensing agreement with SEGA of America Inc. to develop and market chocolate products based on their top-selling franchise, Sonic The Hedgehog®. As such, HBSL developed 10g mini-pieces and 44g chocolate bars embossed with Sonic’s likeness for the convenience and grocery stores distribution channels.
- 4 -
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BUSINESS DEVELOPMENT PLAN HBSL
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ACQUISITION GROWTH STRATEGY
The confectionary industry is notoriously fragmented and typically operated like “Mom & Pop” businesses. With two acquisitions under their belt, Management has the proven ability to apply best business practices in this niche industry by acquiring, revitalizing and turning around small, high-quality chocolate manufacturers that are either undercapitalized or lack sales and marketing skills (or both). By coupling our business acumen with a publicly traded stock we have positioned ourselves to make opportunistic acquisitions. (Press Release: November 20, 2003)
SALES GROWTH STRATEGY
Our sales focus is to build long-term relationships with retailers of significant size. With the capacity to make annual purchases in the $1 MM to $20 MM range, our target customers necessarily have a “year-round” focus that will help attenuate the cyclical nature of the notoriously seasonal chocolate business.
HBSL spent most of fiscal 2003 cultivating and establishing top-tier wholesale clients.
In addition to the clients previously mentioned (i.e., Suzanne Somers/SLC Sweets, Nordstrom, Macy’s, Marshall’s, Costco, The US Army and Navy), HBSL has also added several smaller wholesale clients including TJ Maxx, Hickory Farms, Home Outfitters, Overwaitea Food Group, and Winners just during the last year alone.
From a product perspective, our intent is to focus on the 20% of American chocolate sales that represent the fastest growth segments in the chocolate industry, namely Gourmet, Ultra-Gourmet, No-Sugar-Added/Low-Carb and Supplement-Fortified chocolates. Accordingly, HBSL has trimmed its product offerings to match our target audience(s).
All of our product lines have excellent margins, and when developed, we expect our ChocoMed products to be our highest margin products. We are very excited about this latter (and new) market segment since it will not involve cannibalization of market share from other niches.
As shown in Table 1, HBSL offers seven major product categories. Each product line contains a number of box sizing and flavor options (SKUs) but the individual chocolate components are identical from a manufacturing standpoint. Our sales focus is weighted towards our Classic Collection and Truffelinos line, both of which have No-Sugar-Added/Low-Carb complements, our gourmet Chocolatier’s Choice line and our No-Sugar-Added/Low-Carb house brand, as margins and underlying market growth are highest with these products.
Very recently, HBSL entered into negotiations with a major corporation (we are under non-disclosure at this time) to recast our Truffelinos line as a private label/in-house brand for them. This multi-million dollar national account represents an exciting development that will have a serious impact on our revenue growth. The scale of this type of contract will further allow HBSL to expand margins as a consequence of lower cost of sales and higher manufacturing efficiency.
Looking forward, it is these types of clients that we are most interested in pursuing.
Under the leadership of recently appointed Senior Vice President Sales, Bradley Romens we fully expect to capitalize on the ground work completed in 2003.
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BUSINESS DEVELOPMENT PLAN HBSL
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TABLE 1. PRODUCT CATEGORIES AND ATTRIBUTES
Chocolate
Class Product Line
(Est. 2005 %) Distribution
Channel(s) Market
Strategy(s) Competitive
Advantages
Ultra-Gourmet Chocolatier’s Choice
(5%)
Top-tier retail chains
Sell Godiva-level quality at 1/3 the price
Impress gourmet retailer with superior quality
Low-cost/high-quality ratio is tough to match
Superior packaging gives perception of great value
Ultra-Gourmet Habits
(10%)
Nordstrom exclusive
Sell higher than Godiva quality at 1/2 the price
Private label contract
Handmade chocolate has no peers
Gourmet Classic Collection
(20%)
Costco Xmas
Mid-tier/Big Box retailers
Undercut mid-market brands like Russell Stover etc.
Provide flexible packaging/sizing options
Hedgehog trademark
Price point
Long track record of seasonal sell through
Gourmet Truffelinos
(30%)
Major Corporation exclusive
Undercut mid-market brands like Russell Stover etc.
Provide “house brand” without using “house label”
Private label contract
Price point
Low-Carb No-Sugar-Added/Low-Carb
(20%)
SomerSweet exclusive
Various quality levels to match requirements of mid-tier thru to top-tier retailers
No-sugar-added adaptations of all HBSL product lines are underway
Provides complement to regular chocolate lines
Develop and market HBSL’s own brand in addition to private label
Unique recipes
Best taste in the industry
Maltitol contracts
Gourmet and/or Low-Carb Supplement Fortified
(5%)
Natural/Organic retailers
Vitamin and Supplement chains
Provide highest quality under well-known brands (private label)
In the first wave of manufacturers to reach market
Licensed Product Sonic The Hedgehog
(10%)
Grocery
Convenience stores
Provide entry point chocolate bar for mass market appeal
Hedgehog trademark
4-year SEGA license
Sonic brand name
- 6 -
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BUSINESS DEVELOPMENT PLAN HBSL
--------------------------------------------------------------------------------
FINANCIAL PROJECTIONS
In HBSL’s 18 months of reinvention we have surrendered our retail business to focus solely on wholesale opportunities – an exercise that is now bearing fruit. Actual 2002 fiscal results showed HBSL losing $1.3M on revenues of $2.2M. In HBSL’s first year as a public company the turnaround was fairly dramatic with the loss being trimmed to $0.5M on revenue of $3.5M.
Looking forward, HBSL intends to utilize its production capacity of $35M inside of 24 months. With costs under control and efficiencies up, Management estimates that $3M in sales approximately equates to a break-even situation for HBSL. It is hoped that 20% of revenues beyond $3M will flow to HBSL’s bottom line in the form of earnings (EBITDA).
Sales beyond $35M will require some capital equipment outlays. Management is currently making financial and manufacturing plant decisions to accommodation for growth into the $100M production capacity range.
FINANCING OPPORTUNITIES
Outside of free cash flow generated from business operations and investment funds received from the exercise of warrants, HBSL anticipates new investment needs of approximately $2M for new equipment purchases, $5M of revolving credit line expansion and $2M for acquisitions and business development.
SUMMARY
HBSL has completed an aggressive reinvention program. We are now implementing an aggressive expansion campaign. Management has identified and landed substantial new customers while simultaneously developing several new and exciting products. Management has integrated another acquisition and is actively seeking additional targets.
INVESTMENT HIGHLIGHTS
An excellent turnaround and rebirth story – dual benefit of organic growth coupled with an acquisition strategy in a $14 billion fast growing industry
Highly innovative new chocolate products including a low-carb line and several supplement bars
ChocoMed subsidiary headed by internationally renowned Doctors set to research the use of chocolate as a delivery agent for nutritional supplements, medicines and medications
Exceptional quality/Price ratios for entire product line while maintaining excellent margins
With recent acquisition, existing plant capacity allows for top line growth of 500% with only minor PP&E costs
Executive and Sales compensation tied directly to performance
Strong debt-free balance sheet
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BUSINESS DEVELOPMENT PLAN HBSL
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PUBLIC COMPANY INFORMATION
Ticker Symbol: HBSL
Shares Outstanding: 21,176,562
Fully Diluted: 29,178,056
52-week Trading Range: $0.35 - $1.99
Recent Price: $1.85
Management and Directors
Grant Petersen, Chairman
Dr. John Veltheer, Chief Operating Officer
Dr. William Donovan, Director
Richard Siemens, Director
CONTACT INFORMATION
Business Development and Investor Relations
John Veltheer, PhD
Tel: 800.661.1524
Houston Office San Francisco Office Vancouver Office
4550 Post Oak Place 2065 Oakdale Avenue 750 Terminal Avenue
Suite 175 San Francisco, CA Suite 208
Houston, TX 94124 Vancouver, BC
77027 V6A 2M5
Tel: 713.960.9903 Tel: 415.550.8846 Tel: 800.661.1524
Fax: 713.961.2940 Fax: 415.550.8359 Fax: 604.687.0142
The information presented contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward-looking statements. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Readers are cautioned not to place undue reliance on the forward-looking statements made in this document.
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End of Filing
Please read this carefully If you are here to make money....
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001062993%2D04%2D000176%2Etxt&FilePath...
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
February 11, 2004
Date of Report (Date of earliest event reported)
HOUSE OF BRUSSELS CHOCOLATES INC.
(Exact name of registrant as specified in its charter)
NEVADA 000-29213 52-2202416
(State or other (Commission File (IRS Employer
Jurisdiction of incorporation) Number) Identification No.)
Suite #208 - 750 Terminal Avenue,
Vancouver, V6A 2M5
British Columbia, Canada
(Address of principal executive offices)
(604) 713-8052
Registrant's telephone number, including area code
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit Number Description
99.1 Press Release dated January 27, 2004
99.2 Business Development Plan
ITEM 9. REGULATION FD DISCLOSURE
On February 12-13, 2004, our Management team will be attending the 2004 NIBA Conference in Las Vegas. On January 27, 2004, we issued a press release regarding the Conference. A copy of the press release is attached hereto as Exhibit 99.1.
During the NIBA Conference, management will make business summary presentations to the attendees, as well as provide each attendee with an investor relations package consisting of an introductory cover letter, news releases and a business development plan.
Since some portions of the business development plan contain information which may not have been previously disclosed in our filings with the Securities and Exchange Commission, we are filing herewith, in compliance with Regulation FD, a copy of the business development plan as Exhibit 99.2.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HOUSE OF BRUSSELS CHOCOLATES INC.
Date: February 11, 2004 By: /s/ Grant Petersen
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Grant Petersen
Chairman of the Board of Directors,
Chief Executive Officer and President
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HOUSE OF BRUSSELS CHOCOLATES
--------------------------------------------------------------------------------
PRESS RELEASE
HOUSE OF BRUSSELS TO PRESENT AT 2004 NIBA CONFERENCE
Houston, TX – January 27, 2004 – House of Brussels Chocolates (“HBSL” or “Brussels”) (OTC BB: HBSL) is proud to announce the Company’s attendance at the February 2004 NIBA conference in Las Vegas, NV.
HBSL is one of more than 20 companies selected to present their business development strategy to an audience of representatives from more than 60 regional brokerage firms and specialized independent broker-dealers.
To be held February 12-13, 2004 at the MGM Grand Hotel in Las Vegas, the NIBA conference is the ideal setting for HBSL to introduce the new House of Brussels Chocolates to the investment community. HBSL will present its management, business strategy, corporate results and growth plans to its target investment audience. As one of the nation’s premier small cap investing forums, the NIBA conference is designed to facilitate the exchange of information between growing small cap companies and the investment community.
John Veltheer, Vice President, Business Development for Brussels, said, “With Brussels reinvention from a small, but prestigious Canadian specialty chocolate retailer, to that of an International manufacturer and distributor completed, we look at this meeting as an excellent opportunity to introduce ourselves and our company to the exact people that can take us to the next level.” Veltheer went on to say, “The timing of this conference just before Valentines Day couldn’t be any more perfect in that we believe Brussels will be able to make a particularly memorable impact on the representatives of the attending brokerage firms, at a time when chocolate is particularly on most people’s minds.”
About NIBA ( www.nibanet.org )
The National Investment Banking Association (NIBA) was organized in June 1994 as a national association of regional and independent broker-dealer and investment banking firms seeking to improve conditions in their industry, to strengthen the free-enterprise system, and to provide a vital source of information and education to its members and the investing public. Their founding purposes are to facilitate the exchange of information to improve business conditions generally, and with respect to matters relating to corporate finance, syndication and product development, and other aspects of capital formation; to educate and inform business, government, media, academia, and the investing public regarding these matters; to engage in government relations activities to create an informed environment among the legislative, regulatory, and judicial functions of government; and to conduct research and provide statistical programs to aid these various activities. They are dedicated to developing an association of substantial, reputable firms committed to creating a standard of quality that will enhance the reputation of each individual member. NIBA adds to the value of its member firms, their client companies and investors, and the securities industry at large, by hosting the premier forum for small companies seeking access and exposure to regional underwriters and broker-dealers in connection with their capital formation and other financial objectives. In addition, NIBA acts as a focal point for all those seeking to enhance the capital formation environment for small companies.
About House of Brussels Chocolates Inc. ( www.brusselschocolates.com )
House of Brussels Chocolates has manufactured and distributed gourmet Belgian chocolates around the world since 1983. HBSL’s signature product is a "hedgehog" - a molded chocolate design that blends the traditional Belgian symbol of good luck with taste for a strong customer appeal. Most of HBSL’s 100 products are based on its signature hedgehog including the Sonic The Hedgehog™ chocolate bar which is sold under license from SEGA® of America, Inc. Other products in the HBSL line include an assortment of tourist oriented truffles including some made with genuine maple syrup and some with Canadian ice wine, fine quality chocolate bars made in several distinct flavors, a no-sugar-added/low-carbohydrate line of chocolate bars and truffles, and the recently introduced supplement-fortified bars. All of HBSL’s proprietary products have a tried and true track record of customer acceptance and are manufactured in our facilities in Vancouver and San Francisco. In addition to house brands, HBSL creates custom packaging and sizing, as well as private labels.
Safe Harbor: Certain statements in this news release regarding future expectations and plans may be regarded as "forward looking statements" as defined by federal law. Although the company believes such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in
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HOUSE OF BRUSSELS CHOCOLATES
--------------------------------------------------------------------------------
reliance on the "safe harbor" protections provided under the Private Securities Reform Act of 1995. They are subject to various risks, including uncertainties regarding timing, and capital availability, as discussed in detail in House of Brussels quarterly and annual reports filed with the SEC.
Contact: John Veltheer
Telephone: 713.960.9903 or 1.800.661.1524
Email: info@hobc.ca
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BUSINESS DEVELOPMENT PLAN HBSL
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CORPORATE SUMMARY
Headquartered in Houston, TX, House of Brussels Chocolates, Inc. (OTCBB: HBSL) is a premier manufacturer of gourmet, high quality Belgian chocolates. With manufacturing plants in Vancouver and San Francisco, HBSL has a production capacity of $35 million in annual revenue.
HBSL's signature product is the chocolate hedgehog, which marries the traditional Belgian symbol of good luck (i.e., the hedgehog) with taste (i.e., chocolate) for a strong customer appeal.
Even though many of HBSL’s 100 products are based on its signature hedgehog, including the recently released Sonic The Hedgehog® chocolate bar – under license from SEGA® of America, Inc., ( Press Release: April 16, 2003 ) our future sales growth is directed towards emerging market trends. In addition to a broad spectrum of products in the Gourmet/Ultra-Gourmet category, HBSL now manufactures a complete line of no-sugar-added/low-carbohydrate line of chocolate bars and truffles and several nutritional supplement bars.
Our clients include Suzanne Somers, Nordstrom, Macy’s, Marshall’s, Costco, The US Army and Navy, and many others. Our products have a long track record of customer acceptance and they are manufactured to the highest standards as evidenced by a number of product and marketing awards. In addition to house brands, HBSL creates custom packaging, shaping and sizing as well as private labels for several major North American retailers – as one would expect from a diversified manufacturer.
From 1983 to 2002, House of Brussels Chocolates was a regional retail chocolate player with fluctuating sales and profitability, despite its established reputation for producing premium products. When House of Brussels Chocolates was acquired in May 2002 and taken public via reverse merger, new Management recognized the need to capitalize on its greatest asset – its products.
In less than two years, HBSL new management team has:
Substantially increased wholesale revenues
Eliminated redundant staff
Simplified and pared product lines
Closed marginal retail operations
Sold profitable retail operations – HBSL now acts as a wholesaler to these operations
Greatly improved manufacturing efficiency and operating margins
Dramatically slashed operating losses
Developed numerous innovative products
Set the stage for profitability
The results for HBSL’s first year of reinvention are compelling. In fiscal 2003 (i.e., the year ended April 30, 2003), HBSL achieved revenues in the amount of $3,046,851 compared to revenues of $2,270,452 for fiscal 2002, representing a 34% increase. However, this does not tell the whole story. As part of HBSL’s restructuring plan, retail sales channels were abandoned in 2003. In line with revised business objectives, HBSL then posted a 134% increase in wholesale revenues for 2003 and brought revenues derived from wholesale operations up to 96% of total revenues, as compared to 55% the year before. ( Press Release: August 7, 2003 )
Emerging as an international manufacturer, HBSL has increased efficiency and capacity and intends to focus on higher margin niche markets such as Gourmet/Ultra-Gourmet, Low-Carb and Supplement-Fortified chocolates. In fact, we foresee such an opportunity in the latter category that we recently incorporated a subsidiary ChocoMed, Inc. (“ChocoMed”) to act as an umbrella company for HBSL’s interest in investigating the use of chocolate as a carrier for dietary supplements, functional foods and pharmaceutical compounds to treat various medical conditions. ( Press Release: February 5, 2004
With our transition phase complete, HBSL is now poised for significant expansion and profitability.
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BUSINESS DEVELOPMENT PLAN HBSL
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2003 CORPORATE MILESTONES
Maintained agreement with Suzanne Somers as exclusive manufacturer for her Low-Carb chocolates
Obtained 4-year North American licensing agreement with SEGA for Sonic The HedgehogUchocolate products
Initiated US rollout for several product lines
Produced first supplement-fortified chocolate bar for Culinova, Inc.
Created Medical Advisory Board
Acquired the assets and clientele of The Candy Jar, Inc.
2004 (Year-to-Date) CORPORATE MILESTONES
Integrated Candy Jar products and clients into the HBSL structure
Revitalized Truffelinos Brand as a private label for a Major Corporation
Incorporated ChocoMed, Inc. subsidiary for new product development and research
Added Richard Siemens and Dr. William Donovan to Board of Directors
Expanded Medical Advisory Board to 4 members
Appointed Senior Vice President of Sales
2004 EXPANSION PRIORITIES
Increase sales towards goal of achieving 100% utilization of our manufacturing capacity
Aggressively widen all three sales channels – private labels, house brands, and licensing
Further increase both gross and net margins by continuing to increase manufacturing efficiency
Continue to focus on wholesale clients with annual purchasing capacity in excess of $1,000,000
Continue to create, introduce and distribute innovative, high-margin chocolate products
Complete corporate headquarters relocation to Houston, TX
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BUSINESS DEVELOPMENT PLAN HBSL
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THE MARKET
Market statistics demonstrate the tremendous opportunity to execute our priority list:
Annual chocolate consumption = 3.1 billion pounds
Annual chocolate sales (wholesale) = $8.5 billion
Annual chocolate sales (retail) = $14 billion
Chocolate sales = 55% of the confection industry
1% market share = $85 Million in annual wholesale revenue
ORGANIC GROWTH STRATEGY
HBSL is focused on four types of business development:
New Product Innovation
HBSL is a forward-looking company. As such we moved into the low-carb arena 18 months ago. Then, five months ago, we established a Medical Advisory Board under the guidance of William F. Donovan, MD, to investigate and research the use of chocolate as a carrier for dietary supplements, functional foods and pharmaceutical compounds to treat various medical conditions. ( Press Release: October 13, 2004 ) These are both exceptionally exciting and evolving fields that merit serious investment of capital and resources in order for HBSL to emerge as a market leader.
Private Label Manufacturing, Brand Development and Sales
HBSL is a soup-to-nuts private label manufacturer. From design, packaging, recipes, shapes and logistics, HBSL helps its clients in every aspect of product development in order to best service their own clients. For example, SLC Sweets, a company owned and operated by international spokesperson Suzanne Somers, is HBSL’s largest private label client. Over the last 18 months, HBSL has co-developed nearly 20 new products, all in the exploding low-carbohydrate/no-sugar-added arena. Sold exclusively through the Home Shopping Network and the SomerSweet website (www.somersweet.com) these products are specifically tailored to Suzanne Somers core audience of health and weight conscious women aged 30-50. Other private label clientele include Nordstrom and numerous airlines, cruise lines and hotels.
National Expansion of Established Regional Products
With the recent hiring of well-respected food industry executive Bradley Romens as Senior Vice President of Sales ( Press Release: January 8, 2004 ) HBSL is now expanding distribution of its house-branded chocolate line throughout North America. A single, but clear, example of opportunity lies with Costco. Having done business with Costco (Western Canada Division) for several years and achieving 95%+ sell-through rates, other regional Costco divisions have expressed interest in carrying our time-tested Hedgehog line. Mr. Romens was hired specifically because of his track record for executing distribution expansions.
Manufacturing and Sales under License
Product licensing is a multi-billion dollar global industry. HBSL has capitalized on a small fraction of that business by negotiating a 4-year North American licensing agreement with SEGA of America Inc. to develop and market chocolate products based on their top-selling franchise, Sonic The Hedgehog®. As such, HBSL developed 10g mini-pieces and 44g chocolate bars embossed with Sonic’s likeness for the convenience and grocery stores distribution channels.
- 4 -
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BUSINESS DEVELOPMENT PLAN HBSL
--------------------------------------------------------------------------------
ACQUISITION GROWTH STRATEGY
The confectionary industry is notoriously fragmented and typically operated like “Mom & Pop” businesses. With two acquisitions under their belt, Management has the proven ability to apply best business practices in this niche industry by acquiring, revitalizing and turning around small, high-quality chocolate manufacturers that are either undercapitalized or lack sales and marketing skills (or both). By coupling our business acumen with a publicly traded stock we have positioned ourselves to make opportunistic acquisitions. (Press Release: November 20, 2003)
SALES GROWTH STRATEGY
Our sales focus is to build long-term relationships with retailers of significant size. With the capacity to make annual purchases in the $1 MM to $20 MM range, our target customers necessarily have a “year-round” focus that will help attenuate the cyclical nature of the notoriously seasonal chocolate business.
HBSL spent most of fiscal 2003 cultivating and establishing top-tier wholesale clients.
In addition to the clients previously mentioned (i.e., Suzanne Somers/SLC Sweets, Nordstrom, Macy’s, Marshall’s, Costco, The US Army and Navy), HBSL has also added several smaller wholesale clients including TJ Maxx, Hickory Farms, Home Outfitters, Overwaitea Food Group, and Winners just during the last year alone.
From a product perspective, our intent is to focus on the 20% of American chocolate sales that represent the fastest growth segments in the chocolate industry, namely Gourmet, Ultra-Gourmet, No-Sugar-Added/Low-Carb and Supplement-Fortified chocolates. Accordingly, HBSL has trimmed its product offerings to match our target audience(s).
All of our product lines have excellent margins, and when developed, we expect our ChocoMed products to be our highest margin products. We are very excited about this latter (and new) market segment since it will not involve cannibalization of market share from other niches.
As shown in Table 1, HBSL offers seven major product categories. Each product line contains a number of box sizing and flavor options (SKUs) but the individual chocolate components are identical from a manufacturing standpoint. Our sales focus is weighted towards our Classic Collection and Truffelinos line, both of which have No-Sugar-Added/Low-Carb complements, our gourmet Chocolatier’s Choice line and our No-Sugar-Added/Low-Carb house brand, as margins and underlying market growth are highest with these products.
Very recently, HBSL entered into negotiations with a major corporation (we are under non-disclosure at this time) to recast our Truffelinos line as a private label/in-house brand for them. This multi-million dollar national account represents an exciting development that will have a serious impact on our revenue growth. The scale of this type of contract will further allow HBSL to expand margins as a consequence of lower cost of sales and higher manufacturing efficiency.
Looking forward, it is these types of clients that we are most interested in pursuing.
Under the leadership of recently appointed Senior Vice President Sales, Bradley Romens we fully expect to capitalize on the ground work completed in 2003.
- 5 -
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BUSINESS DEVELOPMENT PLAN HBSL
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TABLE 1. PRODUCT CATEGORIES AND ATTRIBUTES
Chocolate
Class Product Line
(Est. 2005 %) Distribution
Channel(s) Market
Strategy(s) Competitive
Advantages
Ultra-Gourmet Chocolatier’s Choice
(5%)
Top-tier retail chains
Sell Godiva-level quality at 1/3 the price
Impress gourmet retailer with superior quality
Low-cost/high-quality ratio is tough to match
Superior packaging gives perception of great value
Ultra-Gourmet Habits
(10%)
Nordstrom exclusive
Sell higher than Godiva quality at 1/2 the price
Private label contract
Handmade chocolate has no peers
Gourmet Classic Collection
(20%)
Costco Xmas
Mid-tier/Big Box retailers
Undercut mid-market brands like Russell Stover etc.
Provide flexible packaging/sizing options
Hedgehog trademark
Price point
Long track record of seasonal sell through
Gourmet Truffelinos
(30%)
Major Corporation exclusive
Undercut mid-market brands like Russell Stover etc.
Provide “house brand” without using “house label”
Private label contract
Price point
Low-Carb No-Sugar-Added/Low-Carb
(20%)
SomerSweet exclusive
Various quality levels to match requirements of mid-tier thru to top-tier retailers
No-sugar-added adaptations of all HBSL product lines are underway
Provides complement to regular chocolate lines
Develop and market HBSL’s own brand in addition to private label
Unique recipes
Best taste in the industry
Maltitol contracts
Gourmet and/or Low-Carb Supplement Fortified
(5%)
Natural/Organic retailers
Vitamin and Supplement chains
Provide highest quality under well-known brands (private label)
In the first wave of manufacturers to reach market
Licensed Product Sonic The Hedgehog
(10%)
Grocery
Convenience stores
Provide entry point chocolate bar for mass market appeal
Hedgehog trademark
4-year SEGA license
Sonic brand name
- 6 -
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BUSINESS DEVELOPMENT PLAN HBSL
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FINANCIAL PROJECTIONS
In HBSL’s 18 months of reinvention we have surrendered our retail business to focus solely on wholesale opportunities – an exercise that is now bearing fruit. Actual 2002 fiscal results showed HBSL losing $1.3M on revenues of $2.2M. In HBSL’s first year as a public company the turnaround was fairly dramatic with the loss being trimmed to $0.5M on revenue of $3.5M.
Looking forward, HBSL intends to utilize its production capacity of $35M inside of 24 months. With costs under control and efficiencies up, Management estimates that $3M in sales approximately equates to a break-even situation for HBSL. It is hoped that 20% of revenues beyond $3M will flow to HBSL’s bottom line in the form of earnings (EBITDA).
Sales beyond $35M will require some capital equipment outlays. Management is currently making financial and manufacturing plant decisions to accommodation for growth into the $100M production capacity range.
FINANCING OPPORTUNITIES
Outside of free cash flow generated from business operations and investment funds received from the exercise of warrants, HBSL anticipates new investment needs of approximately $2M for new equipment purchases, $5M of revolving credit line expansion and $2M for acquisitions and business development.
SUMMARY
HBSL has completed an aggressive reinvention program. We are now implementing an aggressive expansion campaign. Management has identified and landed substantial new customers while simultaneously developing several new and exciting products. Management has integrated another acquisition and is actively seeking additional targets.
INVESTMENT HIGHLIGHTS
An excellent turnaround and rebirth story – dual benefit of organic growth coupled with an acquisition strategy in a $14 billion fast growing industry
Highly innovative new chocolate products including a low-carb line and several supplement bars
ChocoMed subsidiary headed by internationally renowned Doctors set to research the use of chocolate as a delivery agent for nutritional supplements, medicines and medications
Exceptional quality/Price ratios for entire product line while maintaining excellent margins
With recent acquisition, existing plant capacity allows for top line growth of 500% with only minor PP&E costs
Executive and Sales compensation tied directly to performance
Strong debt-free balance sheet
- 7 -
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BUSINESS DEVELOPMENT PLAN HBSL
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PUBLIC COMPANY INFORMATION
Ticker Symbol: HBSL
Shares Outstanding: 21,176,562
Fully Diluted: 29,178,056
52-week Trading Range: $0.35 - $1.99
Recent Price: $1.85
Management and Directors
Grant Petersen, Chairman
Dr. John Veltheer, Chief Operating Officer
Dr. William Donovan, Director
Richard Siemens, Director
CONTACT INFORMATION
Business Development and Investor Relations
John Veltheer, PhD
Tel: 800.661.1524
Houston Office San Francisco Office Vancouver Office
4550 Post Oak Place 2065 Oakdale Avenue 750 Terminal Avenue
Suite 175 San Francisco, CA Suite 208
Houston, TX 94124 Vancouver, BC
77027 V6A 2M5
Tel: 713.960.9903 Tel: 415.550.8846 Tel: 800.661.1524
Fax: 713.961.2940 Fax: 415.550.8359 Fax: 604.687.0142
The information presented contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward-looking statements. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Readers are cautioned not to place undue reliance on the forward-looking statements made in this document.
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mrgoodtrade/HBSL
Cant go wrong IMO!
~Rig
~FSRC Gapping, this is a winner IMO. ~Rig
~HBSL 8k...
http://biz.yahoo.com/e/040212/hbsl.ob8-k.html
Big exposure as a result of these presentations IMO.
~Rig
fire,
are they 99 bottles of beer? lmao.
~Rig
I will be back in a bit after I finish......
kilauea,
Nice!!!
I look forward to when it takes out the 52 week high.
~Rig
fire, Cup of Joe...I am really liking your FSRC ~ Chart...
~FSRC .275 X .285 Cup of Joe Chart.... This looks good folks IMO! I added
~Rig
APOA!!! .135 X .14 ~Rig