According to this news release by EKSIA, it looks like the Former CEO of Apple Computer is taking over the company.
bmurphy.com
Electro-Kinetic Systems to Acquire Sterling Media; Enters Growing Media/Communications and Financial Industries
Electro-Kinetic Systems to Acquire Sterling Media; Enters Growing
Media/Communications and Financial Industries
JERSEY CITY, N.J., Jun 12, 2000 /PRNewswire via COMTEX/ -- Electro-Kinetic
Systems, Inc. (OTC Bulletin Board: EKSIA) ("Electro-Kinetic") announced today
that it has entered into a Letter Agreement with Sterling Media Fund Managers,
L.L.C. dba Sterling Media Capital Group ("Sterling"). Sterling is a
privately-held asset management group operating in the media/communications and
financial services industries. Upon completion of both steps of a two-step
acquisition, the stockholders of Sterling will own approximately 91.5% of the
equity and voting rights of Electro-Kinetic, which will change its name to
Sterling Media Capital Group, Inc.
Under the Letter Agreement, following the first step of the acquisition, Dwight
L. Pierce, President and Chief Executive Officer of Sterling will be appointed
President, CEO and a director of Electro-Kinetic. Raymond L. Burke will resign
from these positions with the parent company upon Mr. Pierce's appointment. Mr.
Pierce intends to appoint Gilbert F. Amelio as Chairman of the Board and
Director, Paul Nussbaum as Vice Chairman of the Board of Directors , David Annin
as Vice President, Secretary, Treasurer and Director and Bob L. McGiboney as
Executive Vice President and Director.
"I am excited about the prospects of this new business," commented Raymond L.
Burke, President & CEO of Electro-Kinetics. "Sterling has a vision of creating
new financial services for the 'new economy.' Sterling also has the distinction
of being one of the first financial service entities in the world to convert
under-utilized media and internet properties into investment capital."
The Acquisition. The acquisition is expected to be completed in two steps. The
first step on or about July 3, 2000 by the issuance of 46,000,000 (a majority)
of the common stock to the shareholders of Sterling in exchange for
approximately 15% of the equity interests of Sterling. The parent company will
then change its name to Sterling Media Capital Group, Inc. The second step will
be completed thereafter by acquisition of the remaining 85% of Sterling. After
completion of the second step of the acquisition process, Sterling will be a
wholly owned subsidiary of Electro-Kinetics and the present stockholders of
Sterling will own approximately 91.5% of the outstanding equity interest and
voting rights of the parent company. The first step of the acquisition will not
require approval of stockholders of Electro-Kinetics. The Letter Agreement
states that the estimates of net worth of Sterling will be in excess of
$2,000,000.
It is expected that following completion of the acquisition, the stockholders of
Electro-Kinetics will be presented a proposal to "reverse-split" the outstanding
shares of common stock and amend the Articles of Incorporation to increase the
number of shares of common stock Electro-Kinetics is authorized to issue. If the
"reverse-split" is approved and the amendment to the Articles is authorized,
upon completion of the acquisition, there will be approximately 17,000,000
outstanding common shares. Approximately 15,555,000 common shares (91.5%) will
be held by the present Sterling stockholders and approximately 1,445,000 common
shares (8.5%) will be held by the present Electro-Kinetic stockholders.
About Sterling. Sterling currently manages a pool of media-based assets with a
total net value, based on third party appraisals, of approximately $500,000,000.
This asset pool is expected to double over the next twelve months by the
addition of two new asset based investment programs coming under the management
of Sterling. Sterling uses the assets under its management to raise investment
capital, which it, in turn, invests in emerging growth companies as venture
capital. The assets managed now and presumably in the future by Sterling provide
a "profits interest" to Sterling in concert with other third parties.
Sterling's executive office is in Tulsa, Oklahoma, with its administrative
offices in Dallas, Texas. Sterling presently has 10 employees, most of whom are
shareholders.
Except for historical information, all of the statements, expectations and
assumptions contained in the foregoing are forward-looking statements. The
realization of any or all of these expectations is subject to a number of risks
and uncertainties and it is possible that the assumptions made by management may
not materialize.
SOURCE Electro-Kinetic Systems, Inc.
CONTACT: Raymond L. Burke, President & CEO of Electro-Kinetic Systems,
Inc., 201-216-0100, or fax, 201-216-1105
(EKSIA)
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