MDIH Announces the Engagement of an Investment Banking Firm
HARTFORD, Conn.--(BUSINESS WIRE)--Oct. 13, 1998--MDI Entertainment (OTC BB:MDIH - news) today announced that it has retained the services of Venture Partners Capital LLC a Boston, MA-based investment bank. Venture Partners provides a wide range of financial services to both private and publicly traded companies.
Commenting on the retention of Venture Partners, MDI Entertainment President and CEO Steve Saferin stated, ''We needed the capabilities that Venture Partners offers to effectively manage and execute our growth strategy. The company expects to grow by internal means as well as by acquisition. Venture Partners has been tremendously helpful thus far, and we look forward to their continued assistance in helping MDI's management maximize shareholder value.''
Over the last 6 months, MDI has secured six new state lottery contracts with the Harley-Davidson theme and a new contract
with the Pepsi-Cola theme. The contracts with the state lotteries of Wisconsin, South Dakota, Maryland, Pennsylvania, New Jersey, Iowa, and Missouri are expected to generate $4.5 million dollars in revenue to be recognized the MDI's current fiscal year. These Harley-Davidson games are collectively expected to generate a total of approximately $76 million in instant scratch-off ticket sales for these states. The Pepsi-Cola game is expected to generate $10 million in ticket sales for the state of Wisconsin.
On October 1, 1998 MDI announced its fully reporting status with the filing of the its Registration Statement on form 10-SB with the Securities and Exchange Commission. Additionally, the company reported record first quarter revenues and earnings. Revenues for the first quarter totaled $2.1 million as compared to $291,000 in revenues for the same period last year. For the first quarter, MDI earned $465,000 or $.06 per share on a fully diluted basis versus a loss $361,000 or the equivalent of ($.05) per share in the same period last year. As of August 31, 1998, there were a total of 7,776,500 shares outstanding.
MDI specializes in creating, marketing and implementing entertainment-based promotions to the North American lottery
industry. MDI's current lottery promotions include scratch games featuring properties such as Harley-Davidson, Star Trek, Wheel of Fortune, Twilight Zone and the Rock and Roll Hall of Fame and Museum. A significant aspect of MDI's promotion is the awarding of merchandise tied to the various properties as prizes.
The Private Securities Litigation Reform Act of 1995 provides a ''safe harbor'' for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by MDI) contains statements that are forward-looking, such as statements relating to the future anticipated direction of the lottery industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of MDI. These risks and
uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing
management, financing activities, domestic and global economic conditions, changes in federal or state tax laws and market
competition factors.
Contact:
MDI Entertainment
Alon Kutai, 401/848-7955 |
