BOCA RATON, Fla., April 18, 2013 /PRNewswire/ -- Novation Holdings (OTCQB:NOHO) today announced that it has acquired the operating assets and business of a California-based restaurant development and operating group. The acquired business operates a local-themed, entertainment focused bar and restaurant in Temecula California and plans to start additional, local themed entertainment restaurants in Southern California, Arizona, Texas and possibly Florida over the next three years. The acquisition was in exchange for a combination of NOHO stock, debt and assumption of notes. According to Michael Gelmon, CEO of Novation Holdings, "This acquisition will allow us to continue our acquisition plan to identify growing, profitable businesses which we can acquire and then transfer to existing public companies for a controlling interest. We anticipate having NOHO as the controlling parent of 4 or 5 separate public companies which it will manage through its administrative support division, and the acquisition of this restaurant development operation will lead to the second, controlled public subsidiary for NOHO."
The acquired company operates House Bar & Grill, which is already profitable after only a few months of operations, and NOHO, through its soon to be acquired public subsidiary, plans to open multiple operating units nationwide, and possibly in Canada, either as corporate stores or as franchises to accelerate growth. The new administrative subsidiary of NOHO also will provide in-house financial services, including accounting, bookkeeping, budget, financial statement preparation, preparation of SEC periodic filings, EDGAR filing conversion, XBRL filings, banking support and similar services, as well as "in-house" corporate counsel services, compensation management support, HR, IT support and other such services to the newly acquired public subsidiary as well as to the restaurant group.
FORWARD LOOKING STATEMENT
Certain statements contained herein and subsequent oral statements made by and on behalf of Novation Holdings, Inc. may contain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are identified by words such as "intends", "anticipates", "believes", "expects", and "hopes" and includes, without limitation, statements regarding Novation Holdings, Inc.'s plan of business operations, product research and development activities, anticipated revenues and expenses and potential contractual arrangements and obligations. Also, our management may make forward-looking statements orally to investors, analysts, the media and others. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. These risks and others are included from time to time in documents we file with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on our future results. Accordingly, you should not place undue reliance on these forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The Company undertakes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the Company. The Company's SEC filings are available at http://www.sec.gov.
Novation Holdings, Inc.
SOURCE Novation Holdings