SMC Entertainment Divests Certain Non-Core Wireless Assets and Returns Shares to Treasury
SMC Entertainment (OTC PINK: SMCE) has announced a divestiture agreement to return all assets of its subsidiary FiberSKY Networks to its original stakeholders. In exchange, FiberSKY stakeholders will return 20,000,000 shares of SMC's common stock to the treasury for cancellation. Additionally, SMC will issue 2,000,000 new restricted shares to the stakeholders as part of the agreement. This decision is seen as part of SMC's strategy to focus on potential acquisitions with existing revenues and tangible assets.
- Divestiture of FiberSKY allows SMC to focus on core operations.
- Return of 20,000,000 shares to treasury decreases outstanding shares, potentially benefiting shareholders.
- SMC plans to pursue acquisition opportunities in fragmented markets, which could enhance revenue.
- Divesting a subsidiary may indicate challenges in FiberSKY's performance.
- Issuing 2,000,000 restricted shares may dilute existing shareholders' equity.
SAN FRANCISCO, CA / ACCESSWIRE / March 8, 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 divesture agreement ("Agreement") to divest its FiberSKY Networks, Inc. subsidiary ("FiberSKY"). Pursuant to the Agreement, SMC will return all assets relating to the FiberSKY acquisition including but not limited to FiberSKY stock, intellectual properties, marketing material, and website development to FiberSKY's original stakeholders ("FiberSKY Stakeholders"). In return, FiberSKY Stakeholders will return 20,000,000 shares of SMC's common stock to SMC's treasury for cancellation. As an inducement to facilitating the execution of the Agreement, SMC will issue 2,000,000 new restricted shares of SMC's common stock to FiberSKY Stakeholders. The restricted common shares will be issued in accordance with Rule 144 of the Securities and Exchange Commission.
Rick Bjorklund, President and CEO of SMC stated, "I would like to thank FiberSKY management and stakeholders for facilitating this transaction. We are confident that FiberSKY will continue to seek ways to expand its business independent of SMC." Mr. Bjorklund continued to state, "we continue to look for acquisition opportunities in fragmented markets with reasonable valuations. Such opportunities will demand from us to recalibrate our business plan and transition our focus. The acquisition opportunities that we will be evaluating must have existing revenues and/or tangible assets to strengthen our balance sheet."
On February 24, 2021, SMC announced the signing of a definitive purchase agreement to acquire Spectrum Entertainment LLC.
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.
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.
View source version on accesswire.com:
https://www.accesswire.com/633790/SMC-Entertainment-Divests-Certain-Non-Core-Wireless-Assets-and-Returns-Shares-to-Treasury
FAQ
What did SMC Entertainment announce on March 8, 2021?
What will happen to the 20,000,000 shares returned by FiberSKY stakeholders?
How many new restricted shares will SMC issue as part of the FiberSKY divestiture?
What is SMC's future focus after the divestiture of FiberSKY?
What is the ticker symbol for SMC Entertainment?
