Yahoo Finance SMC Entertainment Signs Definitive Purchase Agreement to Acquire Spectrum Entertainment LLC
SAN FRANCISCO, CA / ACCESSWIRE / February 24, 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 executed a definitive purchase agreement to acquire 100% of Michigan-based Spectrum Entertainment LLC ("Spectrum LLC") for equity of SMC Entertainment. SMC expects to close this acquisition soon and will release acquisition terms after closing.
Spectrum Midway & Carnival, the marketing brand name owned and operated by Spectrum LLC, specializes in fair ground rides, games, food and fun for the whole family. Spectrum LLC has been in operation for over 25 years. Revenues for fiscal years 2018 and 2019 were $597,153US and $618,204US respectively. Spectrum LLC experienced a significant revenue drop for fiscal year 2020 due to the challenging time the US economy experienced and expects a recovery in revenues for fiscal year 2021 as the economy opens up and market conditions improve. As of fiscal year end 2020, Spectrum LLC net tangible assets were $1,569,000US. All figures are unaudited.
SMC will leverage this acquisition to expand its business plan into well-established and proven revenue generating businesses that require minimal operating capital to run its existing infrastructure. SMC intends to invest additional capital to expand Spectrum LLC's market share and add additional games and rides.
Rick Bjorklund, President and CEO of SMC stated, "Since joining the SMC team in 2018, we've continued to look for acquisition opportunities in fragmented markets with a reasonable acquisition valuation. This acquisition provides SMC with additional revenues and strengthens our tangible assets on our balance sheet. We believe there are more strategic acquisitions in this space and we will invest our time to find the right synergetic opportunities to expand."
Dan Barbacovick, founder and owner of Spectrum LLC state, " We are delighted that SMC Entertainment has confidence is our strategy for growth. Rick Bjorklund has significant experience in the community event business which fits very well with Spectrum's goals and vision! "
About Spectrum Entertainment LLC
Spectrum Entertainment LLC, thru its marketing brand Spectrum Midway & Carnival, 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 platform to enhance revenue growth thru acquisitions. For more information, visit www.smceinc.com.
Press Contact:
Ron Hughes
Chief Operating Officer
SMC Entertainment, Inc.
Ron.Hughes.operations@gmail.com
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.
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