** NEW INVESTORS: Review this Press Release
MORE DD ON PLAY CO. TOYS AND UPCOMING IPO
(PR NEWSWIRE) Play Co. Toys & Entertainment Corp. Announces Signing of Inv
Play Co. Toys & Entertainment Corp. Announces Signing of Investment Agreement
to Take Subsidiary Public
OTC Bulletin Board SYMBOLS: Common Stock - PLCO
Series E Preferred Stock - PLCOP
Series E Preferred Stock Warrants - PLCOW
SAN MARCOS, Calif., July 29 /PRNewswire/ -- Play Co. Toys & Entertainment
Corp. (OTC Bulletin Board: PLCO, PLCOP, PLCOW) ("Play Co. Toys" or the
"Company" for Play Co. Toys and subsidiaries collectively) announced today
that it has entered into an investment agreement with an investment banking
firm to take public its subsidiary, Toys International.COM, Inc. ("Toys
International"), in an initial public offering. The investment agreement
anticipates IPO proceeds of approximately $20 million to $25 million through
the sale of 22% of Toys International. The investment agreement calls for the
IPO to occur in approximately 90 days.
Additionally, as part of the investment agreement the investment banking
firm participated in a $2.8 million pre-IPO private equity placement in Toys
International. The company has already received those funds. Toys
International currently operates 19 of the Company's 26 stores as well as its
Internet operations.
The Company posted net income of $140,868 in the year ended March 31, 1999
compared to a loss of $2,054,470 in the prior year. This represented an
improvement of $2,195,338. Play Co. Toys posted sales of $34,371,230 for the
March 1999 year, an $11,802,703, or 52.3%, increase over its prior year sales
of $22,568,527.
Richard Brady, President of the Company states, "We are very excited about
this pivotal development in our Company's progress. We plan to use the
proceeds of the recent private equity placement and of the upcoming IPO to
finance a significantly upgraded e-commerce operation. We are working with
two prominent Internet consulting firms to develop and upgrade our worldwide
Internet web sites to what we believe will be a world class level. We are at
present preparing and enhancing three unique and different children's toy
sites with a fourth to follow shortly. We expect to go live with our unique
sites worldwide in September and October, in time to participate in the
Holiday season."
Mr. Brady went on to state, "We also plan to use the proceeds of these
financings to help support our current store expansion program in high traffic
shopping malls. At present, we have signed leases to open ten new national
locations through the end of the year 2000. We will build a major theme store
in each location. We also would like to note that our recently opened store
in the Venetian Resort & Casino in Las Vegas has surpassed our expectations to
date in its daily sales level."
Play Co. Toys is a toy retailer with 26 stores located in six states. The
Company operates under the Play Co. Toys, Toys International and Toy Co.
tradenames. Play Co. Toys specializes in offering educational, specialty,
collectible, specialty imported and traditional toys.
Statements contained in this press release which are not historical facts
may be considered forward looking information with respect to plans,
projections, or future performance of Play Co. Toys as defined under the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties which could cause actual
results to differ materially from those projected.
SOURCE Play Co. Toys & Entertainment Corp.
-0- 07/29/99
/CONTACT: Play Co. Toys, 760-471-4505 ext. 108, fax 760-471-9624/
/Web site: playco.com
(PLCO PLCOP PLCOW)
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