APBH .097 x .098 Americana Publishing to Dispose of Subsidiary Eliminating $2.5 Million in Uns
cured Debt From Balance Sheet Company Says It's on Track for Third Consecutive Q
arter of Operating Profits
ALBUQUERQUE, N.M., Jul 9, 2003 /PRNewswire-FirstCall via COMTEX/ -- Americana
Publishing, Inc. (OTC Bulletin Board: APBH) today said it is on track for a
third consecutive quarter of operating profits. The Company said revenues in its
core business, audio and print book publishing, were up nearly 400 percent in
the first quarter ended March 31, 2003 compared to the same period in 2002.
While the Company did report a loss due to non-cash expenses, stock options,
etc., it had an operating pro-forma profit in its core business for the second
consecutive quarter.
Currently, the truck-stop market accounts for nearly 80 per cent of the
Company's sales. However, they have established agreements with such major
national retailers such as Barnes and Noble, Ingram Book Company and Amazon.com
to name a few.
"In an attempt to further vertically integrate our Company, we had acquired a
Tennessee-based tape and CD duplication firm," said George Lovato, Jr.,
Americana Publishing, Inc. chairman and chief executive officer. "Unfortunately,
the assets were grossly misrepresented and our efforts to resuscitate the
company through significant cash infusions were not successful. We intend to
dispose of the company through a chapter 7 filing and more than $2-and-a-half
million in unsecured debt will be removed from our balance sheet."
Americana Publishing, Inc. is a leading publisher in the nearly $2 billion audio
books industry. The Company currently has approximately 350 audio book titles,
and should have well over 400 by year-end, which it sells through the Internet,
nearly 30,000 retail stores, approximately 5,000 libraries as well as major
truck stop distributors. The Company also has a growing print book division and
will soon launch a film production and distribution division, Americana
Entertainment, Ltd.
On Monday, the Company announced an investment group, led by Florida-based
Advantage Fund I, LLC, had arranged the acquisition of all of the Company's
outstanding convertible notes and related A & B warrants. As a result of this
transaction, the Company withdrew an SB-2 filing that would have had a
tremendously dilutive impact on its common stock.
"We are working with the investment group on a new capitalization structure and
subsequent financing," said Lovato. "We anticipate to have something in place
within the next 12 months that calls for the restructuring of our notes as well
as canceling the majority of our outstanding warrants."
"The investment group, lead by the Advantage Fund I, LLC, is extremely confident
in our business model and our senior management," Lovato added. "They have
indicated their willingness to work closely with our Company to develop a
capitalization structure and future financings that are in the best interests of
our shareholders and that omit the "toxic" features of the current securities."
ABOUT AMERICANA PUBLISHING, INC.
Americana Publishing, Inc. is a vertically integrated multimedia publishing
company whose primary business is publishing and selling audio books, print
books and electronic books in a variety of genres. Sales of its products are
conducted through the Internet as well as a distribution network of more than
35,000, retail stores, libraries and truck stops. According to the Audio
Publishers Association (APA), annual sales of audio books are nearly $2 billion.
Currently 42 million Americans listen to audio books and 58 percent of that
group listen to more than 2 per month. The median income of listeners is $54,900
while the median age of male listeners is 41.9 and female listeners is 44.2
years.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. Certain of the statements contained herein,
which are not historical facts, are forward-looking statements with respect to
events, the occurrence of which involve risks and uncertainties. These
forward-looking statements may be impacted, either positively or negatively, by
various factors. Information concerning potential factors that could affect the
Company is detailed from time to time in the Company's reports filed with the
Securities and Exchange Commission.
Contact: George Lovato (505)-265-6121
SOURCE Americana Publishing, Inc
CONTACT: George Lovato of Americana Publishing, Inc., +1-505-265-6121
(APBH)
prnewswire.com
Copyright (C) 2003 PR Newswire. All rights reserved.
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KEYWORD: New Mexico
INDUSTRY KEYWORD: PUB
MLM
ENT
BKS
OTC
SUBJECT CODE: ERN
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