ROCKVILLE, Md., May 20, 2004 (BUSINESS WIRE) -- Argan, Inc. (OTC BB; BSE: AGAX.OB; AGX) has entered into a Letter of Intent detailing its proposed acquisition of Vitarich Laboratories, Inc. (Vitarich). Vitarich is a farm-to-market, vertically integrated company that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole-food dietary supplements and other personal healthcare products. The company is headquartered in Naples, FL.
Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, remarked, "Vitarich is the kind of entrepreneurial company we like to invest in. It positions us for entry into the nutraceutical industry that is characterized by rapid growth, fragmentation and opportunities for innovation and consolidation." In addition he stated, "Vitarich has a premier management team that has an excellent industry reputation for developing and manufacturing innovative and premium nutraceutical products in its state-of-the-art facilities."
The consummation of this proposed acquisition is contingent upon the completion of due-diligence, the negotiation and signing of a definitive purchase and sale agreement and the approval of both companies' boards of directors and other conditions. The proposal calls for Kevin Thomas and his management team to continue guiding the operations of Vitarich, which will operate as a wholly owned subsidiary of Argan.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.