Providential Consummates Acquisition of Irvine College of Medical Sciences
FOUNTAIN VALLEY, Calif.--(BUSINESS WIRE)--Dec. 22, 2003--Providential Holdings, Inc. ( PRVH - news) :
-- Transaction to be accretive to 2004 financial results
-- Additional stock dividends to be announced
Providential Holdings, Inc. ( PRVH - news) (Berlin, Frankfurt, and Munich Stock Exchanges:PR7, WKN
935160) today announced that the Company has successfully consummated the acquisition of a 51% ownership of Irvine College of Medical Sciences, Inc., a California corporation DBA Atlantis Career College, for a combination of cash and Providential's restricted stock. Providential is taking the initiative to expand into the post-secondary education market and emulate successful business models such as Concorde Career Colleges ( CCDC - news) , Corinthian Colleges ( COCO - news) , and Sylvan Learning Systems ( SLVN - news) .
The acquisition of a 51% interest will allow the Company to consolidate Irvine College's financial results for reporting purposes and is expected to be accretive to the Company's 2004 financial results.
Irvine College of Medical Sciences, (www.atlantiscareercollege.net) is currently approved to provide educational programs in medical-related fields, including Ultrasound Technology, MRI, Medical Assistant, Pharmacy Tech, Pharmaceutical Sales, Registered Nurse and NCLEX prep courses, Professional Child Care, and curricula in information technology such as 3-D Animation, Digital Cinema and Network certifications.
For several years now, stocks of companies that offer college and alternative degrees have gotten high marks from investors for their juicy returns. These outfits' revenues and profits have soared as adults flocked to their schools seeking skills that would make them stand out in a tight labor market. As a result, for example, a $100 investment in Career Education Corp. (CECO) when it went public at $4 a share in 1998 would have been worth $1,000 by the end of 2002, according to CECO'S Web site (www.careered.com).
Raghu Singh, President of Atlantis Career College, commented: "We are proud to be working with Providential Holdings, a forward looking company. We are currently seeking for the college going public to achieve the expansion goals that include acquisition of other similar colleges. Our plans include Media College, Medical College and Business Colleges under one umbrella."
Henry Fahman, Chairman and CEO of Providential Holdings, stated: "It is our plan to take Irvine College public in 2004 and give dividend shares to our Providential shareholders at that time as well."
Commenting on the future outlook of the post-secondary education market, Fahman added: "As weakening job markets have led many people to seek additional education, analysts such as Lauren Rich Fine of Merrill Lynch and Michael Jaffe of Standard & Poor's remain bullish on the sector while enrollment continues to surge. Also with rising ambition levels prompting many US workers to go back to school to enhance their skills and ever-growing international student populations who wish to have an American degree, we expect education demand to remain strong in the future even as the economy bounces back."
About Providential:
Providential Holdings, Inc. (PHI) is a diversified holding company committed to creating shareholder value through growth. The company focuses on selective technologies, capital and financial services, international markets and special situations.
Products and services include mobile entertainment systems, information technology, identification technology, infrastructure development, telecommunications, trade commerce, and mergers and acquisitions, especially in the U.S. and emerging overseas markets with high potential for growth. URL: www.phiglobal.com.
Safe Harbor
Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future to differ materially from forecasted results. These risks and uncertainties include, among other things, the company's ability to attract qualified management, raise sufficient capital, and effectively compete against similar companies.
These and other risks are identified in the company's SEC filings and should be considered in evaluating the forward-looking statements made herein.