It is the Company’s intention to operate in a “hub and spoke” system, whereby it will acquire or develop larger, fully equipped hospitals, providing a wide range of medical, diagnostic and non-medical services at the “hub,” and use the traditional smaller general practices as “spokes” to feed patients desiring the broader array of more specialized services that a general practice is not equipped to provide to the “hub” units. The Company also intends to enter into affiliate relationships with veterinary hospitals not owned by the Company that may become “feeder spokes” for the Company’s “hub” units.

The Company has acquired and/or entered definitive agreements with potential target veterinary hospitals located in the Washington, D.C. and Long Island, NY areas. It is also opened negotiations with large speciality practices in Florida, Georgia and Pennsylvania.

The company is funded by two experienced financial and strategic investment groups with long histories of building exceptional companies.

• Commonwealth Associates, based in New York, is a nineteen year old Merchant and Investment Bank with a reputation for structuring investments and partnering with high quality management teams to implement innovative business models. Commonwealth has extensive previous experience investing in the animal care market, and is affiliated with the ComVest Group, a private equity organization that manages over $1 billion in dedicated funds.
• PetWatch’s other financial supporter is a Washington, DC-based private equity firm with approximately $1 billion in assets under management and a 17 year history of partnering with strong management teams to build long-term value for shareholders.”

The combination of the two groups brings together industry knowledge, local experience and a long, successful record of enterprise development. 

Further, both groups are principal shareholders in a “sister” company to PetWatch: SanJose, CA-based XLNT Veterinary Care t/a PetDRx. XLNT owns and operates 30 veterinary hospitals in California, and has revenues exceeding $70MM.  XLNT recently completed it’s merger with ECHO HealthCare, and is, as of December 12, 2007, a publicly traded company.