Silver Screens Studios: Acquires First Company for Spin-off and Distribution to Shareholders as Confirmed by NOBO List and Transfer Agent
2006-10-25 10:45 ET - News Release
Shareholders Integrity Plan Phase I to Certified Shareholders as Confirmed by NOBO List and Transfer Agent
ATLANTA -- (Business Wire)
Silver Screen Studios, Inc. (OTCBB: SSSU) www.silverscreenstudiogroup.com, http://finance.yahoo.com/q?s=SSSU.OB, Traders Nation, www.tradersnation.com/sssu.shtml, Global 1 Realty Corporation, www.1global1realty.com, forms venture capital private equity investment funds for acquisitions of companies, financing of investments in other entities, and files to do business as Silver Screen Holdings to reflect our new business model.
Acquisitions:
Global 1 Private Equity Fund I, Inc. has acquired 100% of Global Franchising Corporation in exchange for cash and stock. The first acquisition using the Reg. E Fund valued at $1,000,000.00 forms the foundation of our Shareholders Integrity Plan.
Business Model for Acquisition:
The business plan for Global Franchising Corp. (GFC) will be to develop franchises/business opportunities for the purchase and sale of distressed real estate assets in the U.S. Each franchise/business opportunity will enable an investor to acquire assets at a wholesale price using our, contacts financing capability and public trading network.
Business Objective:
The business objectives are forward looking and contain forward looking statements and are pro forma as the results have not occurred. The business objectives are:
1. To have 200 franchises within 36 months in 25 states.
2. The monthly projected asset acquisition is 50-100 properties per month raging in total value from $5,000,000 to $10,000,000 per month.
3. A gross profit margin of 15% yielding the company $750,000-$1,500,000 per month in gross revenues.
4. Estimated Pro forma expense ratio of 33%.
5. Estimated Pro forma Net Revenue of $12,000,000.00 - $24,000,000.00 per year.
Company Capitalization of Global Franchising Corp.:
1. Global Franchising will be capitalized with 100,000,000 shares outstanding.
2. Earning Per Share (EPS) estimate of $0.12 - $0.24 per share.
3. Estimated Pro Forma Growth Rate: 10% annually.
4. Estimated Pro Forma Multiple: 10x.
5. Estimated Pro Forma Share Price: $1.20 - $2.40 per share.
SSSU Shareholder Benefits:
1. A dividend of 30% of Global Franchising to the verified shareholders of SSSU owning 175,000 shares or more of SSSU on a record date to be announced.
2. Each shareholder owning 175,000 shares of SSSU will receive as a distribution one (1) share of Global Franchising Corp. valued at $1.20 - $2.40 per share for each 10 shares owned of SSSU.
Global 1 Private Equity Fund I, Inc. Capitalization and Rights Offering:
1. Global 1 Private Equity Fund I, Inc. owns 70,000,000 shares of Global Franchising Corp.
2. Global 1 Private Equity Fund I, Inc. 70.0 million shares pro forma value ($1.08-$ 2.14 ex dividend of GFC) $75.6 ? $149.8 million.
3. Global 1 Private Equity Fund I, Inc. 10.0 million share capitalization.
4. Global 1 Private Equity Fund I, Inc. book value of $7.56 ? 14.98 per share.
5. SSSU will own 50% of Global 1 Private Equity Fund I, Inc., 35,000,000 shares.
Rights Offering Plan:
Shareholders of SSSU owning 200,000 shares or more can purchase via a Right Offering Plan shares of Global 1 Private Equity Fund I, Inc. at a discount of 20% maximum of 50,000 shares.
Failure to Deliver and Short Positions:
1. All failure to deliver and short positions are deemed short a distribution of Global Franchising Corp. shares on a 1:1 basis for each share short and failed to be delivered.
2. Upon the consolidation of Global 1 Private Equity Fund I, Inc. on SSSU?s balance sheet, SSSU?s book value will increase by an estimated $1.15 per share.
Summary:
What we have done is to create value for our shareholders through a non-dilutive method of share appreciation and provide a comprehensive strategy of growth through mergers and acquisitions.
We are developing the Entertainment Tax Credit Financing Structure and estimate early November as the delivery date.
Each Reg. E Fund will have a similar structure and SSSU?s book value and equity price will reflect the consolidated assets.
About Global 1 Investment Corporation:
The family of funds we construct will have equity, fixed income, real estate securities, mortgages, affordable housing and commercial assets as investment opportunities for different classes of investors.
Disclaimer: The below disclaimer is incorporated by reference as if fully set forth herein this as well as all media releases on SSS behalf. The statements contained in this released are forward looking and may or may not occur due to forces beyond the company's control. The above analysis contains forward looking and pro forma statements and is considered estimates. The results contained in the statements have not occurred and there is no guarantee the results will occur. Factors affecting the results can cause the results to vary materially from the estimates and pro forma calculations. See our Form 10KSB for risk factors affecting our business.
Contacts:
Silver Screen Studios, Inc. Barry Thomas, 404-255-0400 sssu@mindspring.com
Source: Silver Screen Studios, Inc.
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