BEIJING, Jan. 26 /PRNewswire-FirstCall/ - LandStar Inc. (LDSR; http://www.landstarcorp.com) further to the issuers news release of January 13 where amongst other things the company revisited its 'No Recapitalization" policy. The company has recapitalized to 8.8 billion shares. This recapitalization was necessary to accommodate a 4 way merger the company is currently entertaining.
Two of the targeted merger candidates are in China and one in USA (see filings Pink Sheets)
One of the China based merger companies is Hubei Sheng Di Vessel Manufacturing Co., Ltd. The second targeted merger company name will be released in due time. Both of these companies are significant. The merger once completed will create a materially and fundamentally different LDSR company.
Mr. Lee Congtang, CEO, Chairman of LDSR said "Our market cap is $5,160,000 as of Jan 25, 2010 which is about the cost of our equipment based on a 'fire sale'. LDSR is not a fire sale object by any stretch of the imagination. Just to put this in perspective Hubei Sheng Di Vessel Manufacturing Co., Ltd. is about 10 times larger than LDSR, and the second and third targeted merger company are about equally same. Our point is to demonstrate just how wrong the market is about the LDSR valuation as a whole. One of the new subsidiary shows gross annual revenues in the range of $8 million USD and profits in the range of $2 million USD.
This is a 4 way merger that will see LDSR have a stake in all of these companies. Even a flat 6 or 7 billion payment in stock at our price level is not enough to absorb all 3 candidates. We are looking at various sophisticated models that will see LDSR maintain a good stake in these merger candidates. A spin off from LDSR with LDSR as lead benefactor is one option being considered. We are very excited about this mega merger opportunity and have chosen to release this news after the market closes to allow the markets to digest and sleep on these progresses being made by LDSR.
Also, we are not going to address our critics any more. You had your court date and an opportunity to be heard and when afforded that opportunity, yet you ran away from the opportunity as cowards. You choose to hide under silly aliases and cry foul on Internet chat boards. It reminds me of what some of our competitors do when they lose a contract to us and I'm starting to wonder if there is any connection there".
The "no reverse stock" policy of LDSR remains undisturbed, and no stock reversal of any kind is planned or contemplated.
More filings will follow on Pink Sheets.
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Safe Harbor Statement
Information in this news release may contain statements about future expectations, plans, prospects or performance of LandStar Inc. that constitute forward-looking statements for purposes of the Safe Harbor Provisions under the Private Securities Litigation Reform Act of 1995. The words or phrases "can be", "expects", "may affect", "believed", "estimate", "project" and similar words and phrases are intended to identify such forward-looking statements. LandStar Inc. cautions you that any forward-looking information provided by or on behalf of LandStar Inc. is not a guarantee of future performance. None of the information in this press release constitutes or is intended as an offer to sell securities or investment advice of any kind. LandStar Inc.'s actual results may differ materially from those anticipated in such forward-looking statements as a result of various important factors, some of which are beyond LandStar Inc.'s control. In addition to those discussed in LandStar Inc.'s press releases, public filings, and statements by LandStar Inc.'s management, including, but not limited to, LandStar Inc.'s estimate of the sufficiency of its existing capital resources, LandStar Inc.'s ability to raise additional capital to fund future operations, LandStar Inc.'s ability to repay its existing indebtedness, the uncertainties involved in estimating market opportunities, and in identifying contracts which match LandStar Inc.'s capability to be awarded contracts. All such forward-looking statements are current only as of the date on which such statements were made. LandStar Inc. does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.
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SOURCE Land Star Inc.