Are they trying to tell us the stock is going to $8?
CHICAGO, Sept. 23 /PRNewswire/ -- Richard S. Berger, Director, Classics
International Entertainment, Inc. (Nasdaq: CIEI) announced today that CIE has
entered into a Letter of Understanding ("LOU") to merge with Zideo.Com, Inc.,
a wholly owned subsidiary of DigiByte Corporation. One of Zideo's present
applications is its Zideo.Com "Player" which plays all forms of digital
entertainment media over the Internet; i.e.: music, video, games and
information. This player is also being designed to be hand held thereby
expanding its use to other forms of entertainment besides on a person's PC.
Zideo's.Com Player can also:
-- Play all forms of digital entertainment media even when connected to
the Internet.
-- Will automatically find all digitized media on a local hard-drive.
-- Will also automatically find all digitized media on any connected
network.
-- Can also play any form of music or video available for computers in
either compressed or uncompressed format.
Don Ashley, President of Zideo.Com, said, "The science is driven by high
levels of compression, speed and encryption which allows full motion streaming
and static content in a high resolution, low bandwidth, cross platform format.
It's anticipated that Zideo's web site will be expanded in November. Our
unique scientific innovations, content and interactive web site will not only
produce a highly trafficked web site suitable for large advertising programs,
co-branding and major events, but will allow the presentation of our
technologies in a real world environment." Zideo will have continued support
from DigiByte sciences which will enhance Zideo's prominence as a global
leader in Internet, intranet, and satellite transmission activities.
Mr. Berger stated, "I view this as a wonderful opportunity for the
shareholders of CIE and Zideo.com. Under the LOU, it is incumbent upon CIE to
bring its audits, SEC filings, and Federal and State filings current; convert
all issued and outstanding Preference shares and Warrants into one class of
common free trading shares; settle all liabilities using the Company's common
stock as currency, and to do any and all other activities to assure Zideo.Com
that CIE is in compliance with the agreement." Mr. Berger also stated that
CIE will end up with 6 million shares (including all shares issued to bring
the Company into compliance with its creditors, the conversion of its
Preference shares, and outstanding Warrants issued several years ago). Should
the transaction close, it is anticipated that 26.6 million shares will be
issued and outstanding. 6 million shares will be on the initial "float" or
22.6% of the common shares issued. 4 million shares of the 20.6 million will
be registered as the share price rises to certain levels; 4 million shares
when the stock price reaches $8, and 4 million shares at each $4 increment
thereafter: all other shares will be restricted under Rule 144. Mr. Berger
also stated that, "there are no assurances that this transaction will be
completed because of CIE's liability burden." All of the events necessary to
close are on a "fast track" and must take place within two periods of time:
all filings, audits, conversions, and settlements must be completed by
November 3, 1999, at which time a "Definitive Agreement" would be executed,
with a close to take place on or before November 17, 1999. Closing of this
transaction will require consent of both Boards, and the shareholders of CIE.
Safe Harbor Statement:
Included in this company profile are certain "forward looking" statements
within the meaning of the Securities Act of 1933, as amended. Although the
Company believes that the expectations reflected in such forward looking
statements are reasonable, actual results may differ materially from those
anticipated in the forward looking statements as a result of certain factors
including sales levels, retention, competition trends, and other market
factors.
Contact: Richard S. Berger, Director of CIE, 800-569-CIEI (2434); or Don
Ashley, President of Zideo.Com, Inc., 214-373-7711.
SOURCE Classics International Entertainment, Inc.
-0- 09/23/1999
/CONTACT: Richard S. Berger, Director of CIE, 800-569-CIEI(2434); or
Don Ashley, President of Zideo.Com, Inc., 214-373-7711/
/Web site: zideo.com /
(CIEI) |
