LOS ANGELES, Aug 9, 1999 /PRNewswire via COMTEX/ -- The Entertainment
Internet, Inc. (OTC Bulletin Board: EINI), a global provider of
information and data distribution services specifically designed for
the entertainment and media industries, and 1st Miracle Group, Inc.
(OTC Bulletin Board: MVEE), an independent and diversified film
company, today announced the signing of a definitive merger agreement.
The merger will occur shortly after shareholder ratification by both
companies. EINI will be the surviving entity and each 12 shares of MVEE
will be exchanged for approximately 1 share of EINI, which will result
in EINI shareholders owning approximately 50% of the combined entity
and MVEE shareholders owning approximately 50%. Based upon EINI's
Friday, August 6, 1999 closing price of $0.843, the agreement values
MVEE at $0.49 per share, a nearly 100% premium to MVEE shareholders,
based on Friday, August 06, 1999's closing price of $0.041. This
transaction is expected to be accretive to both EINI and MVEE
shareholders. The combined company is expected to have a pro forma
market capitalization of approximately $36 million. A combination of
the current management of both companies will operate the new combined
entity.
The surviving trading symbol will be MVEE. The new company will reform
as Miracle Entertainment, Inc. Mr. Mohamed Hadid will serve as Chairman
of the Board, and Tony Cataldo will serve as Co-Chairman and CEO
ofMiracle Entertainment, Inc.
The Entertainment Internet, Inc.'s mission is to be the dominant global
provider of information, data and e-commerce specifically designed for
the entertainment and media industries. The Entertainment Internet is
the parent company of CastNet.com, the leading online casting service
that has expanded from Hollywood to New York City. CastNet.com's
submissions span the continents; actors in countries such as Germany,
England, and South Koreahave joined the service.
Thom Mount, President of the Producers Guild of America, former
President of Universal Pictures, Co-Founder of the Los Angeles Film
School, and current Board Member of The Entertainment Internet, Inc.,
stated, "CastNet.com's new leadership under Chairman Mohamed Hadid
promises to rapidly accelerate the already fast-paced growth of the
Company."
1st Miracle Group, Inc. is an independent and diversified film company
with a unique corporate structure based on strategic and exclusive
alliances with high quality content producers, including Long Road
Films and Emmett/Furla Films. 1st Miracle Group recently acquired the
rights to Alicia's Book, a highly sought after, original screenplay by
Stanford Whitmore, and has secured $15 million in financing for the
motion picture from Millennium Films. Additionally, 1st Miracle Group
has commitments of approximately $28 million for the financing of two
other films, of which details will soon be released.
World famous action hero Jean-Claude Van Damme, a MVEE Board Member,
stated, "As an actor and business executive, I see this as an ideal
marriage for both actors and film makers."
"The combined company plans to continue to pursue their unique and
synergistic lines of business," stated Mr. Mohamed Hadid, Chairman of
The Entertainment Internet, Inc. "Upon consummation of the merger, a
new board will be formed with representatives from EINI and MVEE."
Tony Cataldo, CEO of 1st Miracle and President of CastNet.com, stated,
"This transaction is expected to create a scale of synergies that, when
realized, will greatly benefit the shareholders of both companies. We
believe that this is an excellent time to be involved in the
entertainment and Internet industries. They compliment each other and
can only grow exponentially."
This statement includes forward-looking information as that term is
defined in the Private Securities Litigation Reform Act of 1995, and,
therefore, is subject to certain risks and uncertainties. There can be
no assurance that the actual results, business conditions, business
developments, losses and contingencies and local and foreign factors
will not differ materially from those suggested in the forward looking
statements as a result of various factors, including market conditions,
competition, advances in technology and other factors.
SOURCE The Entertainment Internet, Inc.
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com -0-
CONTACT: In House Investor Relations of The Entertainment
Internet,
Inc., 323-857-9820, info@eini.net
WEB PAGE: castnet.com |
