CHATSWORTH and LOS ANGELES, Calif., Nov 19, 2007 /PRNewswire-FirstCall via COMTEX/ -- Natrol, Inc, (NTOL) , a leading manufacturer and marketer of nationally branded nutritional products, and Gener8Xion Entertainment, Inc. (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."
Natrol, Inc. (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 www.Natrol.com.
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.
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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.