SOURCE: El Apparel Inc.

June 01, 2006 09:39 ET

El Apparel Signs Letter of Intent to Acquire NutriOne Inc. and Reports on Special Shareholders Meeting

TORONTO -- (MARKET WIRE) -- June 1, 2006 -- El Apparel Inc. (PINKSHEETS: ELAP) announced today that it has signed a letter of intent to acquire 100% of the outstanding shares of NutriOne Inc. as well as provided details to the special shareholders meeting held in Toronto on May 30, 2006.

According to the letter of intent, ELAP will undertake a reverse stock split of 1 for 1,000 and will issue a total of 50,000,000 restricted common shares post reverse split to the shareholders of NutriOne Inc. and ELAP will change its name to NutriOne Inc. The transaction will result in the company to have a total of approximately 75,000,000 shares issued and outstanding.

The company reports that a special shareholders meeting was held in Toronto on May 30, 2006 whereby shareholders have approved the reverse stock split of 1 for 1000, the change of transfer agent to Select American Transfer and the general terms of the letter of intent with NutriOne Inc.

The companies expect to enter into a definitive acquisition agreement on or before June 6, 2006.

Important Information About Forward-Looking Statements

All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.

A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.

Contact Information

  • Contact:
    El Apparel Inc.
    Paul Reynolds
    Tel. 416-854-8965

    NutriOne Inc.
    Homer Pateridis
    Investor Relations Consultant
    Tel. 514-952-5251