EKSIA news:
DALLAS, Jul 7, 2000 /PRNewswire via COMTEX/ -- Sterling Media Capital Group,
Inc. (OTC Bulletin Board: SMCIA) (formerly Electro-Kinetic Systems, Inc., OTC
Bulletin Board: EKSIA) ("Sterling Media") announced today that it has completed
the first step of the planned acquisition of Sterling Media Fund Managers,
L.L.C. dba Sterling Media Capital Group ("Sterling Managers"). Sterling Managers
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 Managers will own approximately 91.5%
of the equity and voting rights of Sterling Media, (which has changed the name
of Electo-Kinetic Systems to Sterling Media Capital Group, Inc.)
Under the Letter Agreement previously announced June 8, 2000, following the
first step of the acquisition, Dwight L. Pierce, President and Chief Executive
Officer of Sterling Managers has been appointed President, CEO and a director of
Sterling Media. Raymond L. Burke has resigned from these positions with the
parent company upon Mr. Pierce's appointment. Mr. Pierce has appointed Paul
Nussbaum as Chairman of the Board of Directors, Gilbert F. Amelio as Vice
Chairman of the Board and Director, David C. Annin as Vice President, Secretary,
Treasurer and Director and Bob L. McGiboney as Executive Vice President and
Director.
The acquisition is to be completed in two steps. The first step was completed
today, July 7, 2000, by the issuance of 46,000,000 (a majority) of the common
stock to the shareholders of Sterling Managers in exchange for approximately 15%
of the equity interests of Sterling Managers. The parent company has today
changed its name to Sterling Media Capital Group, Inc. The second step will be
completed early next week by the acquisition of the remaining 85% of Sterling
Managers, by the issuance of 3,535,358 shares of Sterling Media Series "A"
convertible preferred shares followed by an issuance of 741,113 of these same
convertible preferred shares which will be held in reserve for future issuance
to convertible securities and option holders. After completion of the second
step of the acquisition process, Sterling Managers will be a wholly-owned
subsidiary of Sterling Media and the present stockholders of Sterling Managers
will own approximately 91.5% of the outstanding equity interest and voting
rights of the parent company, Sterling Media.
It is expected that following completion of the acquisition, the stockholders of
Sterling Media 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 that Sterling Media 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 old Sterling Managers stockholders and approximately 1,445,000
common shares (8.5%) will be held by the old Electro-Kinetic stockholders.
Mr. Pierce stated "Sterling Media is one of the first financial service entities
in the world to convert under utilized media and internet properties into
investment capital. Sterling Managers currently manages a pool of non- cash
media based assets with a total net value, based on third party appraisals, of
approximately $500,000,000 and it is expected to grow rapidly over the next few
years, which gives Sterling Media significant investment resources." Sterling
Media and Sterling Managers use the assets under management to raise investment
capital, which they, in turn, invest 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 Media's executive offices are to be located in Dallas, TX, the
subsidiary Sterling Managers will continue to be located in with its
administrative offices in Tulsa, Okalahoma. Sterling Media 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 Sterling Media Capital Group, Inc.
CONTACT: Dwight L. Pierce, President & CEO of Sterling Media Capital
Group, Inc., 972-248-4411, or fax, 972-248-4815
(SMCIA EKSIA)
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(C) 2000 PR Newswire. All rights reserved.
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KEYWORD: Texas
New York
SUBJECT CODE: TNM
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