Currently, the Company operates in the Washington D.C. market, and shortly, the New York market.  The Company has begun negotiations for “hub” hospitals in other markets which the Company believes have attractive demographics and acquisition targets.

The Company targets veterinary hospitals for acquisition that are profitable (after making certain pro-forma acquisition adjustments).  The Company works to build incremental value through programs designed to drive incremental new revenues and benefit from economies of scale, proactive marketing, centralized management, management information systems, “brand name” identification, and by broadening the scope of services and products offered at its hospitals.  Typically, the Company targets “spoke” acquisition candidates with annual revenues in excess of $1 million and “hub” acquisition candidates with annual revenues in excess of $4 million.

The Company may also consider real estate acquisitions and financings in conjunction with or related to veterinary hospitals and practices.

The consideration paid in the Company’s acquisitions may consist of cash, Common Stock, warrants and/or debentures, including convertible debentures.  The debentures and/or the warrants (and any shares of Common Stock underlying such debentures and/or the warrants) will only be issued to accredited investors in accordance with applicable federal and state laws.