Modern to acquire Eureka Records
Modern Records Inc MZR
Shares issued 27,454,114 Oct 2 close $0.23
Tue 3 Oct 2000 News Release
Mr. Johan Grandin reports
Modern Records has signed a letter of intent to acquire Los Angeles-based
Eureka Records U.S. Currently Eureka Records' efforts are focused on
Tiffany, whose new album "Color of Silence" is scheduled for release in
October, 2000. Her single "I'm Not Sleeping" was released on Sept. 12 and
is receiving enthusiastic endorsements from Billboard, People Magazine,
Howard Stern and other premium national media.
The purchase price for Eureka Records is $2.5-million (U.S.) payable in
cash and shares of Modern Records' stock. The closing of the transaction is
subject to a definitive agreement being signed, due diligence and other
standard conditions. In the meantime, Eureka Records will handle all
day-to-day operation of Modern Records. Effective immediately, Eureka
Records will also make its current distribution system available to Modern
Records.
Eureka Records has a nine-year operational history, and currently has 15
albums in the marketplace by eight artists. Eureka's promotional and
marketing persistence has led to Eureka becoming the home to reggae legend
Jimmy Cliff, Corey Stevens, Big Bad Zero and hip hop newcomer Peeps.
Johan Grandin, president and chief executive officer of Modern records,
says: "It's a perfect fit. Eureka Records has the operational and
promotional expertise and history to utilize credit lines which Modern
Records can use for all its artists signed under the label."
"Modern Records provides a powerful forum to create rapid growth for our
company, which allows us to bring music to the marketplace," explains
Eureka Records' president, Joel Wertman. He adds, "With the integration of
Modern Records, I am convinced we have a winning combination."
WARNING: The company relies on litigation protection for "forward-looking"
statements.
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