CinemaStar Luxury Theaters announces short-term financing package
SAN DIEGO (April 22) BUSINESS WIRE -April 22, 1997--CinemaStar Luxury
Theaters Inc. (Nasdaq:LUXY) Tuesday announced that it has reached an
agreement with PCI Inc. under which PCI will loan $2 million to support
in part CinemaStar's theater-expansion program.
The loan was part of an agreement wherein CinemaStar granted exclusive
concession rights to all existing theaters to PCI. The loan is due in
two years and is secured by certain of the company's assets.
John Ellison Jr., CinemaStar president and chief executive officer,
said the funding will be used in part to support the company's
expansion of its Ultraplex multiscreen theater entertainment centers,
including the soon-to-be-opened expansion of the Mission Marketplace 8
in Oceanside, Calif., to 13 screens.
Ellison said that the company is continuing to seek longer-term
financing. CinemaStar's expansion plans will require it to obtain
significant additional debt or equity financing to complete any further
expansion program.
Separately, in response to inquiries generated from an incomplete media
report about management stock sales, CinemaStar clarified that recent
stock selling by members of senior management was attributed to margin
calls.
CinemaStar Luxury Theaters, founded in 1989, currently operates seven
first-run movie theaters, with a total of 64 screens, in Southern
California.
CinemaStar theaters feature high-quality projection and sound
capabilities, including LucasFilm THX Stereo Surround Sound environment
system in most auditoriums, along with luxury amenities such as
high-back reclining seats and extra wide aisles between seat rows. -0-
The information contained in this news release contains certain
forward-looking statements that involve risk and uncertainties, such as
the statements of the company's plan, objectives, expectations and
intentions. The company's actual results could differ materially from
those indicated by such statements as a result of various factors,
including those discussed in the company's Form 10-KSB and Form 10-QSB
on file with the Securities and Exchange Commission.
--30--DB/la*
CONTACT: CinemaStar Luxury Theaters Inc., Oceanside
John Ellison Jr. or Alan Grossberg, 619/630-2011
or
Pondel Parsons & Wilkinson, Los Angeles
Craig Parsons, 310/207-9300
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: ENTERTAINMENT REPEATS: New York 212-752-9600 or
800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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