SAN FRANCISCO, CA / ACCESSWIRE / March 23, 2021 / SMC Entertainment, Inc. ("SMC" or the "Company") (OTC PINK:SMCE), a provider of products and services for the entertainment industry, digital communications, and content distribution solutions, is pleased to announce that it has completed the 100% acquisition of Michigan-based Spectrum Entertainment, LLC ("Spectrum") for equity. This acquisition significantly strengthens SMC's revenue and balance sheet and will be reflected in SMC's Q2/2021 financial statements.
Spectrum specializes in fair ground rides, games, food and fun for the whole family. Spectrum has been in operation for over 25 years. Revenues for fiscal years 2018 and 2019 were $597,153 and $618,204 respectively. Spectrum experienced a significant revenue drop for fiscal year 2020 due to the pandemic but expects a rebound in revenues for fiscal year 2021 as the economy opens up and market conditions improve. As of fiscal year-end 2020, Spectrum's net tangible assets were $1,569,000. All figures are unaudited.
With the 2021 season opening in a few weeks, SMC and Spectrum have already finalized new events and markets that would potentially increase revenues by up to 40%. SMC intends to invest additional capital to expand Spectrum's market share and add new games and rides.
SMC will use the Spectrum acquisition as a launching pad for additional acquisitions in the family entertainment and event-based fragmented market, and consolidate them under the SMC brand. At a minimum, such acquisition opportunities should have reasonable valuation, well-established markets, proven revenues, and require minimal operating capital.
Pursuant to the acquisition agreement: (a) SMC will issue 40,000,000 restricted common shares to Spectrum's stakeholders, (b) SMC is extending management agreements to Spectrum's management team to continue operating Spectrum's day-to-day business, and (c) SMC is assuming institutional and personal short and long term debt. All shares will be issued in accordance with Rule 144 of the Securities and Exchange Commission and will be issued from SMC's treasury.
About Spectrum Entertainment LLC
Spectrum Entertainment LLC, thru its marketing brand Spectrum Carnival Midway, has been providing fair ground rides, games, food and fun for the whole family for over 25 years. For more information, visit www.spectrumcarnival.com.
About SMC Entertainment, Inc.
SMC Entertainment, Inc. is a provider of products and services for the entertainment industry, digital communications and media content marketplaces. Our multi-discipline revenue approach provides a building block to enhance revenue growth thru acquisitions. For more information, visit www.smceinc.com.
Ron Hughes, COO
SMC Entertainment, Inc.
Safe Harbor Statement
This press release contains statements, which may constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company, members of its management, and assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.
SOURCE: SMC Entertainment, Inc.