Please note... The following release is from "International Tasty Fries" a company which has an investment in TFRY, but is in a different line of business (see end of article).
Craig
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International Tasty Fries Inc. Makes Announcement
Business Editors
VANCOUVER, B.C.--(BUSINESS WIRE)--Oct. 6, 1998--International Tasty Fries Inc. (NASD BB:TSTY) (the "company"), is pleased to announce that it has entered into a letter agreement with Skyline Records Inc., headquartered in San Diego, ("Skyline") for participation in the new "hip-hop" music albums being produced and distributed by Skyline.
The terms of the deal call for the company to earn a 50% interest in the net revenues (after artists' royalties) from sales proceeds received from the independent, national and international distributors and sales through the Internet for the initial album, "Filtered Souls: Family Business." This album is a compilation of five individual artists, know as the group "Filtered Souls." The company will also participate in the first solo album of each of the artists, for a total of six-album commitment. The company has also received the first right of refusal for a 50% partnership on an additional four albums by each artist, for a total of another 20 albums.
Skyline reports that over 200,000 flyers and 40,000 posters have been distributed in connection with the scheduled Oct. 31 release of this release of this album, in the cities of Los Angeles, San Diego, the San Francisco Bay area, New York and Vancouver, B.C. The two exclusive Filtered Souls producers bring over 15 years of industry experience as artists, producers and promoters, and have a proven track record in getting radio airplay, club venues, etc., which has already been applied for the current group of rising stars that make up Filtered Souls.
As consideration for its participation, the company will pay $500,000 to Skyline and issue 7 million common shares of the company at a deemed price of $0.14 per share, which will be restricted pursuant to Rule 144. As its share of production costs for the initial album, the company shall expend the next $500,000 as to $300,000 for production of two music videos, and $200,000 for advertising and promotion of the album. These videos are in addition to the three music videos already completed by Skyline, which cost $450,000. The company will receive 50% of the net revenues for its interest.
Subsequent albums will require the company to expend the initial $500,000 for production, videos, advertising, and promotion. After the company's share of expenditures on all albums, any further costs are to be shared 50/50 with Skyline. The initial net revenues will be paid 100% to the company to repay its invested costs, and the balance of revenues will be split 50/50 with Skyline.
The company will be proceeding with a private placement financing to fund this endeavor through the issuance of approximately 7 million common shares at a price of $0.14 per share, by way of a Reg. D offering.
To more accurately reflect the nature of the company's primary business activities, it is proposed to change the name of the company to Filtered Souls Entertainment Inc. In addition, the company will continue to own its investment in Tasty Fries Inc. The company plans to divest itself of the license rights to distribute the Tasty Fries vending machines in certain European countries, and to rid itself of any financial obligations associated thereto.
It is anticipated that these transactions shall be completed prior to the end of October, 1998, through there is no certainly that these transactions will be completed exactly as stated.
International Tasty Fries Inc. is on the National Association of Securities Dealers' Electronic Bulletin Board (Symbol:TSTY).
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CONTACT: International Tasty Fries Inc.
Ian D. Lambert
1-800-688-8644
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: ENTERTAINMENT FOODS/BEVERAGES |
