June 2000
To the Shareholders of MSH Entertainment Corporation
It is time to bring MSH shareholders current as to what has been transpiring and our promising future possibilities. Over the past several months, my colleagues and I have been working diligently and our efforts are beginning to bear fruit.
Importantly, on March 17th MSH filed its 10-SB Document with the Securities and Exchange Commission to become a fully reporting company which means that once effective, as a public company MSH will have to maintain quarterly reporting standards. Should you wish to review the document, please refer online to the Edgar filing, www.edgaronline.com.
So far, the SEC in response to our filing, has sent us a request for additional information, specifically the company's 1999 year end audited financials and for our first quarter 2000 reviews. We are complying with their request and our CFO, Michael Welsh, intends to have those financials available within a short time. We will then refile to document. As I have indicated before, once we are in compliance with the SEC requirements, our intention is to vigorously pursue a listing on of the national markets, the determination of which will be dependent upon meeting the appropriate qualifications, which we are confident we can do.
Our ultimate goal, of course, is to build maximum value for shareholders and to accomplish that, we have initiated a dual approach that would (a) develop a highly talented, highly focused core group directed at creating quality family oriented entertainment that takes maximum advantage of the latest technology in motion pictures, television, music and merchandising, and (b) develop strategic alliances with compatible and complementary companies in the United States and around the world.
MSH has recently transitioned from an R& D company to an operational corporation and our focus on producing products and offering services that have strong family value orientations has not changed. For example, we entered into a strategic alliance relationship with Peter Pan Industries, one of the world's largest distributors of children's and family oriented videos, compact discs and cassettes. PPI, which estimates that it has sold over 600 million items, will not only enhance our distribution capabilities but we, in turn, will provide PPI with original, highly creative product that it will market to (and through) the nation's major retail and specialty stores.
PPI has an invaluable video library that it will make available to KidsAndFamily.net, our Internet initiative. KidsAndFamily.net is right on plan to being a provider of comprehensive Internet advertising and direct marketing solutions for advertisers seeking to reach, and Web publishers operating, the "kids and family" space.
Our KidsAndFamily investment is of particular importance because it puts us on the cutting edge of what is likely to prove to be the most important technology break-through of our lifetime. KidsAndFamily has been developed to deliver highly targeted, measurable and cost effective internet advertising for advertisers, and to increase ad sales and improve ad space inventory management for Web publishers. By building this network, KidsAndFamily.net will also create an environment that will enable advertisers to more efficiently reach the kid's and family audience via the Internet by expanding their access from a few select Web sites to a broad base of sites.
Also on the drawing boards at KidsAndFamily.net are plans to generate additional opportunities to reach this huge marketplace through two of our in-house created properties.: "KidsAndFamily Mall," a cost effective consumer initiated e-mail solution to traditional direct response marketing, and "KidsAndFamily Learning," an educational resource site, will enable KidsAndFamily.net to offer sponsorship opportunities to national advertisers (similar to the PBS advertising model).
We believe that KidsAndFamily.net will provide the most comprehensive opportunity available to Web publisher seeking to reach the children's and family market, a space that is simultaneously a niche by definition and a broad and deep audience in potential reach.
In the marketing and merchandising arena, of course, we have our interest in freedom Multimedia and we are looking forward to the debut of the new Power Glove and the world-wide exploitation of the flex Sensor technology, which should be ready for this year's holiday season. We also have our interest in Abrams/Gentile Entertainment ("AGE"), with its BLINK wireless communications technology, which was the focal point of a bidding war between two major toy companies. It is expected in the not-to-distant future that AGE will announce a licensing agreement with one of them.
MSH is expanding its global presence, having just signed a strategic alliance agreement with Vancouver-based EnterCor Entertainment Corporation, a Canadian film/TV producer and packager, for a co-development/co-production joint venture. EnterCor Entertainment Corporation is a Canadian producer of non-violent, value driven films and TV programming, and will represent MSH with Canadian broadcasters and the Canadian Investment community.
EnterCor represents Sasani Ltd., a South Africa media services and communications conglomerate with state-of-the art, world class production, animation and post production facilities in Johannesburg and Capetown, in making equity investments in specific projects selected by EnterCor. Because of the agreement with EnterCor, MSH and Sasani will be involved in a number of ventures involving the Canadian-South African Treaty. MSH intends to open Canadian offices in Vancouver in EnterCor's facility later this year.
Another of our investments, Aston Entertainment, the Florida based stat-of-the-art animation firm, has produced a particularly interesting project. Through Aston and in conjunction with Canadian-based Studio B. Productions, we will be involved in "D'Myna Leagues," a baseball themed children's animation series created by Studio B, centering on the antics and adventures of a baseball team made of myna birds.
The initial order of 13 half-hour episodes is scheduled to complete production in August. In addition, an agreement has been signed with Columbia-TriStar International for the international television distribution of the series.
We are also in the process of re-structuring and revitalizing MSH Music and of MSH's production arm, which will be dealing with our latest projects and our development and acquisition activities.
As I hop is evident, there is a growing momentum to the company's activities, all part of the maturation of the business. We are currently considering several financing alternatives, naturally, we will attempt to choose the one which is most favorable to MSH and its shareholders.
We will keep you appraised of our progress.
Respectfully,
(signature on fax)
Robert Maerz
Chairman/CEO |
