SSMK NEWS! after the bell
glad i held on to this one
Tuesday January 5, 3:55 pm Eastern Time
Company Press Release
SportsStar Marketing, Inc. Signs $5 Million Media Contract
DENVER--(BUSINESS WIRE)--Jan. 5, 1999--SportsStar Marketing, Inc. (NASD BB:SSMK), a Colorado corporation (''SportsStar'' or the ''Company''), has signed an agreement with Media Fund Inc. of Memphis, Tennessee and its subsidiary, Media Capital Fund I, LLC of Atlanta, Georgia (together, the ''Media Group'').
Media Group will invest $5 million of advertising, broadcast and print media in SportsStar in exchange for a combination of convertible preferred stock and warrants issued by the Company. The principals and affiliates of Media Capital, a media-based investment fund, are senior executives with extensive expertise in marketing and finance. The investment of print and broadcast media (valued at current card rates) will launch SportsStar's major revenue expansion program in 1999.
Consideration for the investment consists of $2 million of convertible preferred stock with a dividend rate of 6%, convertible into two million shares of SportsStar's common stock, a warrant to purchase one million shares of the Company's common stock at $1.00 per share and a second warrant to purchase one million shares of the Company's common stock at between one to two dollars per share.
SportsStar and Media Fund have also entered into a $1 million marketing agreement, whereby Media Fund will provide advertising agency, administration and media production services. This agreement will enable SportsStar to generate direct response sales and to recruit and train a substantial national sales force. The agreement provides for the initial start-up costs ($200,000) to be paid to Media Fund from the proceeds of current capital raising efforts. Further details to be announced upon completion of such negotiations. The balance remaining ($800,000) is to be paid from net cash flows generated through the direct response sales program, as well as future financing undertaken by the Company. The direct response program will be managed by Media Fund.
SportsStar Marketing, Inc., through its NCRA (National College Recruiting Association) affiliate, assists high school students to find scholarships, merit awards and other forms of financial aid for college.
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also . . . :)
Tuesday January 5, 4:14 pm Eastern Time
SportsStar signs media agreements
DENVER, Jan 5 (Reuters) - SportsStar Marketing Inc. said Tuesday it signed an agreement with Media Fund Inc. of Memphis, Tennessee and its subsidiary, Media Capital Fund I LLC of Atlanta, Georgia, which together will form a media group for the company.
Media Group will invest $5 million of advertising, broadcast and print media in SportsStar in exchange for a combination of convertible preferred stock and warrants issued by the company, it said in a statement.
SportsStar and Media Fund have also entered into a $1 million marketing agreement, whereby Media Fund will provide advertising agency, administration and media production services.
''This agreement will enable SportsStar to generate direct response sales and to recruit and train a substantial national sales force,'' the company said.
SportsStar Marketing Inc., through its National College Recruiting Association affiliate, assists high school students to find scholarships, merit awards and other forms of financial aid for college.
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