Filtered Souls Entertainment, Inc. Announces Extended Agreement With Skyline Records Inc.; Will Release Album for Movie and Television Star Raven Symone
Business Wire - March 09, 1999 08:21
SAN DIEGO--(BUSINESS WIRE)--March 9, 1999--FILTERED SOULS ENTERTAINMENT, INC. (OTC BB: FSOL) announces that it has signed an extended agreement with its joint venture partner SKYLINE RECORDS INC. amending the original deal to incorporate the following terms.
The original deal called for a payment of $500,000, issuance of 1.25 million restricted shares, and a budget to be advanced by Filtered Souls of $500,000 per album for new recordings by each of the artists making up the Filtered Souls family.
Under the amended agreement terms, which calls for the issuance of an additional 1.25 million restricted shares of the common stock of Filtered Souls, the budget to be advanced by Filtered Souls has been set at $250,000 per new recording project. Filtered Souls has the right to participate in new recording projects for all Skyline Records recording artists, both present and future, and to initially recoup the advanced budget from 100% of the net revenues. Thereafter the net revenues, after deducting manufacturing and distribution costs, will be split 50/50 each to Filtered Souls and Skyline Records per the net distribution revenue schedule of $2.90 per cassette and $4.60 per Compact Disc. Both parties are responsible equally for any artist royalties payable from this revenue, typically totaling 8% to 12% of the net distribution revenues.
Under the new joint venture arrangement, Skyline Records announces its first national release is scheduled for distribution on April 27, 1999. Skyline Records has signed a 50% co-venture agreement with Street Pride Records for the recording services of movie and television star and R&B artist Raven Symone. Skyline Records is so enthused by the talent of the young Cosby TV show star, Raven Symone, that her first album, entitled "Undeniable," is being rushed for release via the co-venture arrangement with Street Pride Records. Raven Symone has appeared in such television hits as "Hangin' With Mr. Cooper," "Fresh Prince of Bel-Air," and in films such as "Dr. Dolittle" with Eddie Murphy. Additionally, Disney has just released "Z-nan; Girl of the 21st Century," in which she co-stars. In addition, the thirteen-year-old Symone has headlined on the "Kids Jam USA Tour" (Woodstock for children), and performed the national anthem at a Bulls/Hawks game among others. Filtered Souls will participate in this new venture by advancing the $250,000 video and promotion budget toward exploitation of the initial Raven Symone album, entitled "Undeniable." The album will feature a single written and produced for Raven Symone by Stevie Wonder. The first single, entitled "With a Child's Heart," will be released nationally on April 6, 1999, with release to radio on March 15, 1999.
As previously reported and forming part of the new joint venture arrangement, Skyline Records and Private I/Universal have signed a long-term multi-act, worldwide music distribution agreement. The deal is indicative of how large conglomerates are looking to independents for development of new artists. According to Shanon Thames, Senior VP, Skyline, "We are pleased to join forces with the Private I organization. Along with their marketing expertise we gain the added clout of Universal distribution." The Raven Symone album will be the first artist to be distributed as a result of the Private I/Universal distribution agreement.
Now that Skyline Records has found an appropriate distribution agreement to accommodate the myriad of artists it has recording contracts with, it is set to release at least three acts over the next five months. Skyline Records' interests cover various genres of music including Hip Hop, Rap, R&B, Pop, and Gospel.
The second national release, scheduled for mid-May, 1999, is hip hop's first Latino rap duo, Secret Service. According to Joe Isgro, CEO, Private I: "We couldn't ask for a better marriage because of the level of talent that Skyline brings us, both from a company standpoint and the roster of diverse artists which they have. Private I is firmly committed to developing relationships such as this. We've had an opportunity to preview many of Skyline's wares, and therefore feel assured we're entering into a mutually profitable arrangement."
Filtered Souls Entertainment Inc.
Ian D. Lambert
President
Filtered Souls Entertainment, Inc. is on the National Association of Securities Dealers' Electronic Bulletin Board (Symbol: "FSOL"). For further information or details call (619) 274-3013 or visit our web site at www.filteredsouls.com
CERTAIN INFORMATION INCLUDED IN THIS COMMUNICATION (AS WELL AS INFORMATION INCLUDED IN ORAL STATEMENTS OR OTHER WRITTEN STATEMENTS MADE OR TO BE MADE BY FILTERED SOULS ENTERTAINMENT, INC.) CONTAINS STATEMENTS THAT ARE FORWARD-LOOKING, SUCH AS STATEMENTS RELATING TO THE FUTURE ANTICIPATED DIRECTION OF THE ENTERTAINMENT INDUSTRY, PLANS FOR FUTURE EXPANSION, VARIOUS BUSINESS DEVELOPMENT ACTIVITIES, PLANNED CAPITAL EXPENDITURES, FUTURE FUNDING RESOURCES, ANTICIPATED SALES GROWTH AND POTENTIAL CONTRACTS. THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO A NUMBER OF KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL OPERATIONS OR RESULTS TO DIFFER MATERIALLY FROM THOSE ANTICIPATED.
CONTACT: Filtered Souls Entertainment, Inc.
Investor Relations Department, 619/274-3013
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