Same old same old...
LVEN Clarifies $190,000,000 Cash
Investment by Cruz Family
LOS ANGELES--(BUSINESS WIRE)--Oct. 14, 1999--Las Vegas Entertainment Network Inc.
(Nasdaq:LVEN - news) would like to clarify its press releases and highlight the information file
publicly in its SC14D 1 registration and in connection with its Investment Agreement to receive
$190,000,000 in cash.
The transaction consists of LVEN being funded by the Cruz family Trust through the pledge of four
bank guarantees to U.S. Guarantee Corp. from the B.N.I. Bank Indonesia, in the face amount of
$100 million USD each. These four bank guarantees aggregating a total of $400 million with an
approximate maturity date of March 2000.
The U.S. Guarantee Corp. has agreed through cash instruments to fund $70 million within 5 business
days, $75 million within 30 days, $75 million within 60 days, $80 million within 90 days, and $100
million within 120 days of the first payment. The U.S. Guarantee Corp. funding is conditional upon
the following: That all bank guarantees are free and clear of leans, hypothecation, and encumbrances.
The guarantees are enforceable under the laws of the United States of America, are freely assignable
without notification and without conditions, and that the instruments are backed by clean US funds
clear of any criminal origin. Until the cash is transmitted to the Company, the Company is holding
200,000,000 of BNI Bank guarantees as collateral for the stock purchase.
Dr. Fred Cruz and Kari L. Cruz have agreed pursuant to the investment agreement to make an
equity investment in LVEN for $190 million from the proceeds of these funds in exchange for
12,200,000 shares of the Company's Common Stock.
These shares will have demand registration rights but will bear a legend stating in substance that the
securities represented hereby have not been registered under the securities act of 1933, as amended,
or any securities law and may not be offered, sold or otherwise transferred, pledged or
hypothecated unless and until registered under said act and such laws, or such offer, sale or transfer,
pledge or hypothecation is otherwise exempt from registration under said act and said laws.
Further details can be obtained by referring to those documents provided in the SC 14D1 and SC
14 1/A filings.
Investors are cautioned that this transaction involves risks and uncertainties. Investors who seek
more information about the company's business and relevant risk factors may wish to review the
company's periodic reports filed with the Securities and Exchange Commission including, but not
limited to, its most recent Annual Report on Form 10-KSB and Quarterly Reports on Form
10-QSB. This is not a solicitation to invest and certain material facts may be omitted or not fully
disclosed. LVEN's joint venture agreement will be provided in the company's upcoming 10-Q and
8-K filing with the Securities and Exchange Commission. The company urges caution in trading its
securities until it provides further details.
Contact:
Las Vegas Entertainment Network Inc., Los Angeles
Tim Noyle, 310/551-0011 |
