PR: 5/1/2000
(PR NEWSWIRE) 1st Miracle Group Update Regarding SEC and Company Operations
1st Miracle Group Update Regarding SEC and Company Operations
LOS ANGELES, May 1 /PRNewswire/ -- 1st Miracle Group, Inc.
(OTC Bulletin Board: MVEEE), a diversified film and production company, today
announced that in response to shareholder's inquiries, it is providing the
following update on the Company's current operations.
With regard to the additional "E" added to the symbol, the company is
addressing the SEC's comments regarding its latest amendment to the 8-K filing
of April 11, 2000. Previously the Company has responded to the SEC with
favorable results and expects to resolve this matter as it has done in the
past.
Additionally, the Company has a cash position in excess of $12 million, of
which $8 million is part of a long term holding equity placement and the
remaining $4 million is attributed to various lines of credit and income from
its foreign and domestic sales on several of its projects. Previously, the
Company announced foreign pre-sales totaling $4.8 million at the Cannes Film
Festival in 1999. This cash position does not include the recent $10 million
Line of Credit that was recently obtained to be used for the development of
various movie projects.
Tony Cataldo, CEO of 1st Miracle Group stated, "We are continuing to
address the outstanding issues with SEC in preparation of having the 'E'
lifted from our stock symbol. We are quite confident that we will be able to
manage this situation as we have done in the past. The Company is financially
on strong ground with significant projects that are already developed and
several more that are being developed. We are now using a sophisticated film
production/advertising financing model termed 'Off Balance Sheet Financing' of
which we have in place a $125 million Prints and Advertising deal in place.
Using this financing model, we can produce higher budgeted films ensuring that
they will have better distribution than smaller budgeted movies that are
typically associated with independent film companies. This type of financing
allows Miracle to keep 100% of its copyrights and over 70% of the backend
profits."
"Off Balance Sheet Financing" refers to a financing vehicle whereby a
financing institution advances the production company the funds for production
costs or prints and advertising. The institution receives a premium for the
funds advanced and will recoup its investment prior to the production company.
This financing model is secured in part by pre-sales in foreign markets.
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 1st Miracle Group, Inc.
-0- 05/01/2000
/CONTACT: Stuart Fine of Rubenstein Investor Relations, Sfine@rir1.com,
for 1st Miracle group, Inc./
(MVEEE)
CO: 1st Miracle Group, Inc.
ST: California
IN: ENT
SU: ACC
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