Natrol, Inc. (Nasdaq: NTOL) and Gener8Xion Entertainment (BB: GNXE) Announce Strategic Alliance to Create a New Health and Welln
November 19 2007 - 8:30AM
PR Newswire (US)
CHATSWORTH and LOS ANGELES, Calif., Nov. 19 /PRNewswire-FirstCall/
-- Natrol, Inc, (NASDAQ:NTOL), a leading manufacturer and marketer
of nationally branded nutritional products, and Gener8Xion
Entertainment, Inc. (OTC:GNXE) (BULLETIN BOARD: GNXE) , a fully
integrated family/faith-based entertainment company, have executed
a letter of intent for a strategic alliance to create a new Health
and Wellness Division. Natrol intends to exclusively license the
"Living Pure" brand to Gener8Xion. Natrol will assist GNXE in
developing a Health and Wellness division and will provide
products, services and strategy for GNXE's community of interest
and target market. Natrol will provide support services to GNXE.
Natrol will pay to GNXE the sum of One Hundred and Fifty Thousand
Dollars ($150,000) and GNXE will execute a convertible note for the
same amount (the "Note"), convertible at Natrol's option into
750,000 shares of common stock (the "Shares"). If a definitive
written agreement is entered into prior to the maturity date,
Natrol shall forgive the debt represented by the Note in full and
the above option will be cancelled. In addition, GNXE will issue to
Natrol warrants, options or similar instruments ("Warrants") to be
determined equal to forty percent (40%) of the fully diluted
capital of GNXE. The Warrants will have a strike price of $0.80.
The term of the Warrants will be three (3) years. Natrol will
license the "Living Pure" brand exclusively to GNXE for $1 and will
provide Living Pure branded products to GNXE. The transaction is
subject to further "due diligence" by both parties and the approval
of a definitive agreement by the Boards of Directors of GNXE and
Natrol. The parties will immediately begin meeting to jointly plan
the legal, financial and operational steps necessary to implement
the proposed transaction. The parties will make a good faith effort
to enter into a definitive written agreement on or before January
31, 2008. Gener8Xion is developing a weekly health and wellness
television program that will promote health and wellness
supplements supplied by Natrol to a worldwide family based
audience. The products will be sold over the internet, through
affiliated private organizations and through mass-market retailers.
Wayne M. Bos, Chairman and Chief Executive Officer of Natrol,
commented, "We are excited to begin this partnership with
Gener8Xion Entertainment and to take advantage of a compelling
opportunity to leverage and advance the growing awareness of health
and wellness as an important part of our daily routines. We believe
that the creative vision of the team at Gener8Xion will fit with
our portfolio of products and the Natrol brand and that this
initiative has the potential to create value for the shareholders
of each company." Matthew Crouch, Chairman and CEO of Gener8Xion,
stated, "We are focused on building new corporate divisions under
Gener8Xion that will improve the daily lives of people worldwide."
Gener8Xion President Carlos D. De Mattos added, "The expected sales
and earnings of the health and wellness division should provide us
with more consistent, steady numbers as we continue to grow our
business while diversifying our product range to our respective
family/faith-based market." About Natrol: Natrol, Inc.
(NASDAQ:NTOL), headquartered in Chatsworth, CA, has a portfolio of
health and wellness brands representing quality nutritional
supplements, functional herbal teas, and sports nutrition products.
Established in 1980, Natrol's portfolio of brands includes:
Natrol(R), MRI, Prolab(R), Laci Le Beau(R), Promensil(R),
Trinovin(R), Nu Hair(R) and Shen Min(R). The company also
manufactures supplements for its own brands and on behalf of third
parties. Natrol distributes products nationally through more than
54,000 retailers, as well as internationally in over 40 other
countries through distribution partners and subsidiaries in the UK
and Hong Kong. Natrol's dedication to quality is evidenced by its
commitment to high manufacturing standards, earning the company an
"A" rating from the Natural Products Association's Good
Manufacturing Practices ("GMP") Certification Program--a
designation achieved by less than ten percent of U.S. nutrition
companies. For more information, visit http://www.natrol.com/.
About Gener8Xion Gener8Xion Entertainment, Inc.
(http://www.8x.com/) is engaged in the development, acquisition,
financing, production, and worldwide licensing of feature films and
television projects in the family/faith-based genre. In addition
the Company manufactures and sells high quality production lighting
equipment through its Cinemills (http://www.cinemills.com/)
division which has exclusive US distribution rights to some new
innovative products. Interested investors can now visit the
Company's homepage at http://www.8x.com/ and click the "Investor
Relations" icon to be directed to new pages that include dynamic
historical quote data, answers to frequently asked questions, and
financial information. Most importantly, investors can click on
"Request Info" and securely request that an investor relations kit
be sent to them, receive a phone call from the Company's Investor
Relations personnel, and/or receive press releases delivered
immediately after release to a designated e-mail address. The
statements made in this press release which are not historical
facts, including statements regarding expectations for future
growth of revenue and profits and trends concerning net sales, are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. As a result of a number of factors, our actual results
could differ materially from those set forth in the forward-
looking statements. Certain factors that might cause our actual
results to differ materially from those in the forward-looking
statements include, without limitation: (i) our ability to develop
and execute our business plans, (ii) our ability to respond to
competitive challenges and changing consumer preferences, (iii) our
ability to consummate and integrate acquisitions, (iv) increased
competition, (v) unfavorable publicity about dietary supplements in
general or regarding our products or similar products sold by
others, (vi) our exposure to product liability claims, our
dependence upon certain large customers, and (vii) our ability to
retain and attract talented management and other key employees, as
well as those factors set forth under the heading "Risk Factors" in
our annual report on Form 10-K for the year ended December 31,
2006, and in our other filings with the Securities and Exchange
Commission. Company Contacts: Natrol, Inc. Wayne Bos (818)739-6000
Investor Relations: James Palczynski Phone (203)682-8200 Gener8Xion
Entertainment, Inc. Corporate V.P. - Marcos M. De Mattos Phone -
(818)843-4560 General Email: Investor Relations: DATASOURCE:
Gener8Xion Entertainment, Inc. CONTACT: Wayne Bos, +1-818-739-6000,
or Investor Relations: James Palczynski, +1-203-682-8200, both of
Natrol, Inc.; or Marcos M. De Mattos, Corporate V.P. of Gener8Xion
Entertainment, Inc., +1-818-843-4560, , or Investor Relations: Web
site: http://www.natrol.com/ http://www.8x.com/
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