Land Star Inc. (LDSR) Targets Merger with a USA Company

Mon Oct 26, 2009 9:02am EDT
 
[-] Text [+]
Target merger company reports income of over 23 million dollars as their
    technology serves across the USA


JACKSONVILLE, FL, Oct. 26 /PRNewswire-FirstCall/ - Land Star Inc.
(www.landstarcorp.com), the main operating subsidiary of the Hubai Chuguan
Industry Company Ltd. announces that it considers entering into a business
relationship or transaction that will involve the start of talks for a merger
with a USA company.
Land Star Inc. (LDSR) and the USA company, that does not wish to be named at
the present stage of negotiations, started talks and are in the process of
signing the preliminary documentation for future cooperation. The new company
owns a patented new technology that would deliver a new competitive edge to
LDSR.
The new targeted partner company has patented an affordable technology for
treatment of metallurgical products that lengthens products' life and saves
the replacement costs by up to 50%. The company reports business of over 23
million dollars as their technology serves across the USA. However, this
technology and its infinite future possibilities of application expect to
escalate company's growth exponentially. In their forecasts to the year 2014,
the company predicts annual revenue growth by approximately 50% while lowering
their production cost.
Land Star management feels that this is a material event and that its due
diligence stage with the USA based targeted company requires an announcement.
Hubai Chuguan Industry Co Ltd is a Chinese based company providing solutions
on settlement and reconstruction for oil and gas recycling. The parts,
accessories and the overall assembly is performed in China. It is invisioned
by the management that the USA based company would become a majority stake
holder of LDSR.
The LDSR management, working in concert with its preferred shareholder and its
M&A advisors on this merger, is developing a complex preferred share exchange
arrangement. The end result will see LDSR's current (both common and
preferred) share structure unchanged and undisturbed after the merger. The USA
targeted merger candidate would over time acquire the preferred shares and
have an option to convert these preferred shares at a significantly higher
strike price than what LDSR is currently trading at. Simply put, it's a merger
based on the targeted merger company being able to meet and exceed both
management and long term shareholders reasonable expectations. The USA based
targeted merger candidate is desireous of patenting its technology in the USA
and increasing its revenues. The deal would also eventualy see Hubai Chuguan
Industry Co Ltd split off to trade on the OTCBB exchange. Hubai Chuguan
Industry Co Ltd is well under way with their audit to be OTCBB compliant.
In other company news, the company expects to release its Q3 fionancials
shortly.
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Safe Harbor Statement

Information in this news release may contain statements about future
expectations, plans, prospects or performance of Land Star 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. Land Star Inc. cautions you that any
forward-looking information provided by or on behalf of Land Star 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. Land Star 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 Land Star Inc.'s
control. In addition to those discussed in Land Star Inc.'s press releases,
public filings, and statements by Land Star Inc.'s management, including, but
not limited to, Land Star Inc.'s estimate of the sufficiency of its existing
capital resources, Land Star Inc.'s ability to raise additional capital to
fund future operations, Land Star Inc.'s ability to repay its existing
indebtedness, the uncertainties involved in estimating market opportunities,
and in identifying contracts which match Land Star 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. Land Star 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.

CONTACT: For any investor relations matters, please contact
www.minamargroup.net/helpdesk; Investor Relations Department, (302) 357-9915
(IR), 1st Level Support Retail Clients General Inquiry, www.minamargroup.net
(IR); For (M&A) and Corporate Matters, 1-800-365-4331, www.minamargroup.com

SOURCE  Land Star Inc.

For any investor relations matters, please contact
www.minamargroup.net/helpdesk; Investor Relations Department, (302) 357-9915
(IR), 1st Level Support Retail Clients General Inquiry, www.minamargroup.net
(IR); For (M&A) and Corporate Matters, 1-800-365-4331, www.minamargroup.com

 

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