>>>>>>the deal>>the more $$ your worth the more $$ you make >>
1) The Company signed an agreement with Belfair International Limited (BIL), and Seabird International Limited (SIL) under which Menahem Golan and Yoram Globus will provide services to the Company through a wholly owned subsidiary, Magic Entertainment, Inc. (Magic). This subsidiary will develop and distribute motion pictures and television programs. Under the agreement, Golan and Globus have contributed their services and certain other film properties owned by them through BIL and SIL to the Company in exchange for which each company receives the following:
a) 10,000,000 shares of common stock;
b) $250,000 per year draw against production costs;
c) Four shares of common stock for each $1.00 of net income generated by the Magic up to a cap of 25% ownership in the Company;
d) A bonus equal to 5% of the net income of Magic;
e) Certain other fees dependant on the role of Golan or Globus in individual film projects.
2) Subsequent to year end, the Company has raised over $3,200,000 in various transactions through a mixture of debt and equity. The proceeds have been used to provide working capital and to fund several movies currently in production.
3) The Company has received an offer to purchase three of its health clubs and is currently negotiating the sale of these clubs.
Now the clubs have sold>>
Nov. 4, 1998--1st Miracle Group, Inc. (OTC BB: MVEE), today announced the sale of the assets of its California Health Clubs, Inc. subsidiary to 24 Hour Fitness, Inc., the country's second largest chain of health clubs. Terms of the transaction were not disclosed. However, 1st Miracle anticipates reporting a gain on the sale of the assets.
Commenting on the sale, Peter Benz, Chairman of 1st Miracle, stated, "The sale of the assets of California Health Clubs accomplishes two very important objectives. First, it enables us to devote all of our efforts to the Company's film subsidiary, Magic Entertainment, and second, it enables us to re-deploy these assets to Magic where they can be better utilized to enhance shareholder value."
These assets will add to fy98 end.
with movies soon to be released.
'Delta Force One'
'Speedway'
The Company further noted that the reaction to its films SPEEDWAY JUNKY and DELTA FORCE ONE - THE LOST PATROL has been excellent. As previously noted, the Hollywood Reporter, one of the film industry's most prominent publications, placed "Speedway Junky" on its "A" list of films at the Milan Film Festival.
fy98 end>>>with filing of form 10
and expect to see movies to be released |
