Thursday, September 9, 2010

Lotus Pharmaceuticals (LTUS) takes action to get more attention

Yesterday Lotus Pharmaceuticals (LTUS), a growing developer, manufacturer and seller of medicine and drugs in the People's Republic of China ("PRC"), announced that it has engaged RedChip Companies, Inc., to lead its public and investor relations efforts.

"RedChip's integrity, professionalism, and established reputation for improving investor visibility in the small-cap space prompted us to choose them to lead our ongoing investor relations efforts," stated Dr. Zhongyi Liu, Chairman and CEO of the Company. "Their platform of media and investor relations services is the most comprehensive in the business. We look forward to working with them, and we are confident that RedChip's programs will enable us to build strong, long-term relationships with investors."

"We are pleased to have the opportunity to represent Lotus," said Dave Gentry, President and CEO of RedChip Companies, Inc. "China is one of the world's largest and fastest-growing pharmaceutical markets, with annual sales expected to reach $24 billion in 2010. Continued economic development within China, as well as Chinese government policies aimed at expanding citizens' access to healthcare, is anticipated to drive future growth in this sector. With its strong R&D capabilities, innovative product development pipeline and well-established national distribution network, Lotus is poised to become a market leader. We look forward to introducing them to our investor network as we implement a comprehensive investor relations program that includes research, radio programming, road shows and investor conferences."

Today the Company has appointed Jeff Hon as its new Chief Financial Officer.

"We are excited to welcome Mr. Hon to our executive team," said the Company's Chairman and Chief Executive Officer, Dr. Zhongyi Liu. "Lotus is experiencing strong sales growth and tremendous positive momentum, and we are on track to become a leading player in China's pharmaceutical market. Mr. Hon has successfully guided the expansion efforts of numerous growing companies, and his vast financial and business development expertise will be of great value as we execute our strategic growth plan."

Mr. Hon, who will oversee Lotus's finance, investments and internal investor relations, will report directly to Dr. Liu. Prior to joining Lotus, Mr. Hon was the manager of the IPO/M&A department in the Hong Kong office of Westcomb Financial Group Ltd., an investment banking firm based in Singapore. Previously, he was the senior consultant at Sunbelt Business Advisors, a U.S. M&A consulting firm based in Hong Kong. Prior to that, he served as corporate development manager of Shanghai Technology Company Ltd., a wholly-owned subsidiary of Shanghai Broadband Technology Company Ltd., a Chinese company listed on the Shanghai Stock Exchange. Mr. Hon received his Bachelor of Electronic Engineering (Honors) degree from the City University of Hong Kong, a Master's degree in Corporate Finance from the Polytechnic University of Hong Kong, and a Master's degree in Professional Accounting from Southern Cross University of Australia.

Some details of the RedChip contract
Lotus Pharmaceuticals (LTUS) is a client of RedChip Companies, Inc. and of RedChip Visibility, a division of RedChip Companies. LTUS paid RedChip Visibility, a division of RedChip Companies, Inc., $30,000 for RedChip Visibility Program services, which included the preparation of the equity research report(s). The equity research report(s) were prepared for informational purposes only and were paid for by the company portrayed in the report. Information contained in the equity research report(s) is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. The equity research report(s) are not a recommendation of a solicitation to purchase or sell any security, nor do they constitute investment advice. RedChip Companies, Inc., is currently engaged by this company to provide investor awareness services. Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. LTUS agreed to pay RedChip Companies, Inc., a fee of $8,000 in cash per month for 12 months of these investor relations services. Additionally, LTUS agreed to pay RedChip Companies, Inc., 50,000 shares of common stock under Rule 144 for 12 months of Visibility Program and investor awareness services. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein.

To get investor's visibility and the company under the radar cost money. Dilution is going to be just a fraction of their outstanding shares. Less than 1%, the one-time fee and the $96.000 year-long fees ($8k x 12 months) total just $126.000, a fraction of their quarter net income. With increasing sales and income these professional costs are not going to be a problem!


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