PRVH-(E?) - NEWS - Providential Holdings Takes Decisive Steps to Improve Operating Results
FOUNTAIN VALLEY, Calif.--(BUSINESS WIRE)--May 23, 2003--Providential Holdings, Inc. (OTCBB: PRVH)(Berlin: PR7, WKN 935160)(www.phiglobal.com) today announced that the Company had taken decisive steps in order to improve operating results. As part of "face the realism" review, the Company decided to weed out unproductive projects and refocus on programs that are capable of generating substantial results for the near and intermediate terms.
In a series of sweeping actions that were taken, the Company signed a mutual rescission with HTV Co., Ltd. of Vietnam to terminate Manna Technologies Joint Venture Company and surrender the investment license that was granted in 2001. The Company also annulled the investment agreement with SlimTech, returned all SlimTech's shares it owned and reclaimed 3,000,000 shares of PRVH stock that were issued to this entity last year. The Company had experienced prolonged difficulties in funding these projects and decided to redirect management's energy to readily executable ones. The Company intends to market LCD monitors and other electronic products through its Provimex subsidiary in the future.
In addition, the Company reached a mutual rescission with Clear Pass, Inc., a Nevada corporation, to cancel the stock purchase agreement with this company. The Company returned all Clear Pass, Inc.'s shares, recovered 3,000,000 shares of PRVH stock and cancelled a $1,324,500 note issued in January this year. The Company formed a new wholly-owned subsidiary under the name of ClearPass (CA) to operate as a systems integrator and provider of total biometric security and access management solutions. The Company plans to market biometric products of Real ID Technology Co, Ltd., a Korean company, and other manufacturers' through this new subsidiary.
The Company discontinued its interest in Providential Advisory Services, Inc. and set up a new wholly-owned subsidiary, Providential Capital, to focus on merger and acquisition activities and advisory services for the underserved micro and small-cap arenas, both in the US and abroad. Providential Capital has been actively engaged in assisting several private companies in their merger and acquisition plans and will begin generating significant fee revenues starting this quarter.
The equity line of credit with the Mercator Group was terminated because the Registration Statement with respect to the registrable securities was not effective within the agreed time frame following the Subscription Date. However, the Company chose not to renew the credit line but decided to arrange alternative financings.
While other subsidiaries of Providential continue to execute their plans and contribute to the common results, the Company will also strengthen its corporate governance and improve its strategic effectiveness by adding experienced members to its Board in the near future.
Henry Fahman, Chairman and CEO of Providential, stated: "All our strategizing, planning, organizing and publicizing will mean very little until we can deliver actual results. Companies are meant to create value for shareholders and investors but so far we have not done as well as we have planned. Of course, everybody knows the market has been tough, but we do not want to use it as an excuse for our poor performance. We start with the end in mind; we know the challenges; we are taking corrective actions; and we are confident that the future will be better."
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