SAN FRANCISCO, CA / ACCESSWIRE / March 30, 2021 / SMC Entertainment, Inc. ("SMC" or the "Company") (OTC PINK:SMCE), a provider of venue-based family-oriented entertainment, is pleased to announce that it has signed a stock and intellectual property purchase agreement ("Agreement") with Wyoming-based privately-held Aktiv-Trak, Inc. ("Aktiv-Trak") to sell SMC's last wireless assets. The Agreement is effective immediately.
Pursuant to the Agreement, SMC has sold, transferred and assigned all rights and ownership to SMC's wholly owned subsidiary iPTerra Technologies, Inc. ("iPTerra"), iPMine software intellectual property ("iPMine-IP"), and AktivTrak software intellectual property (AktivTrak-IP") for $600,000 in cash and Aktiv-Trak common shares ("Shares"). Aktiv-Trak will pay SMC a minimum of $250,000 in cash and the balance in either cash, Shares, or a combination of both. SMC has received first payment of $27,000 from Aktiv-Trak. The balance will be due over a 12-month period unless extended by both SMC and Aktiv-Trak.
As a background: in December 2019, SMC announced that it was entering the hospitality staff safety market by developing a new end-to-end software solution. In early 2020, SMC commenced development of the end-to-end AktivTrak software solution by utilizing SMC's iPMine software platform, which SMC owned thru the acquisition of iPTerra in 2018. The AktivTrak product development has progressed with the release of an Alpha version in fall of 2020. A Beta version is planned for testing in the coming months with at least one pilot project installation at an internationally-recognized hotel site is planned for summer/fall 2021.
With the execution of this Agreement, SMC has divested from all wireless assets and will be focusing on venue-based family-oriented entertainment products and services. SMC believes there's an excellent opportunity to acquire a number of these venues with reasonable valuations. As the economy recovers from the pandemic, SMC believes the family entertainment sector will recover at a fast rate.
To execute SMC's vision, on 3/23/2021, SMC announced the closing of 100% acquisition of Michigan-based Spectrum Entertainment, LLC ("Spectrum"). 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.
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 venue-based family-oriented entertainment products and services. Our multi-discipline revenue approach provides a building block to enhance revenue growth thru acquisitions. For more information, visit www.smceinc.com.
Press Release Contact:
Ron Hughes, COO
SMC Entertainment, Inc.
[email protected]
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.