Games Trader Announcement
BRAMPTON, ONTARIO-- Games Trader Inc. (GTR) announced today that
it has acquired certain assets of Movies and Games 4 Sale, L.P.
(Movies). Based in Irvine, TX, Movies is a supplier of previously
played video games with annual revenues of approximately US $9.0
million. Pursuant to the terms of the purchase agreement, Movies
will sell to GTR its inventory and certain receivables and assign
to GTR all its customers accounts, including an agreement with The
Musicland Group to sell previously played video games in certain
Musicland locations through "Game Zone" kiosks.
The consideration paid for the assets of Movies was approximately
CDN $2.5 million. This acquisition is expected to contribute CDN
$1.4 million to pre-tax income in fiscal 2000.
Musicland operates 1,350 retail stores locations in the United
States under the banners Sam Goody, Media Play, On Cue, Musicland
and Suncoast Motion Picture Company. To date, 75 "Game Zone"
kiosks have been installed within certain Musicland stores, with
another six scheduled for installation within the next 9 months.
Expansion of the program beyond the current installations is
subject to Musicland's approval.
"The transaction with Movies is an important step in the
implementation of our corporate strategy," said Peter Kozicz,
President and C.E.O. of GTR. "It provides customer
diversification and the Musicland contract significantly expands
our initiative of full-service vendor managed retail programs. We
very much look forward to our relationship with Musicland and hope
that we will be able to expand the Game Zone program into many
more Musicland outlets."
Games Trader Inc. is a leading supplier of value-priced,
previously played video games for console game systems to mass
merchant retailers in the United States and Canada. Its shares
are listed on the Toronto Stock Exchange and trade under to ticker
symbol "GTR". There are currently 25.1 million shares
outstanding, 32.1 million shares fully diluted.
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