SMC Entertainment Divests Its Second Non-Core Wireless Assets

Rhea-AI Summary

SMC Entertainment (OTC Pink: SMCE) announced on March 25, 2021, the immediate divestiture of its WiMundo H.S.I.A. Solutions subsidiary. In this agreement, SMC is returning all assets related to WiMundo and will avoid the issuance of 20 million shares of common stock. As compensation, SMC will issue 3 million restricted shares to WiMundo consultants. Additionally, SMC recently completed the acquisition of Spectrum Entertainment, which recorded revenues of $597,153 and $618,204 in 2018 and 2019 respectively. Spectrum expects revenue recovery in 2021 following a pandemic-induced decline.

Positive

• SMC divested non-core WiMundo subsidiary, reducing future operational complexities.
• Acquisition of Spectrum Entertainment is expected to strengthen SMC's revenue and balance sheet.
• Spectrum Entertainment has a history of revenues and tangible assets, enhancing SMC's market position.

Negative

• Spectrum Entertainment experienced a revenue decline in fiscal year 2020 due to the pandemic.

SAN FRANCISCO, CA / ACCESSWIRE / March 25, 2021 / SMC Entertainment, Inc. ("SMC" or the "Company") (OTC Pink:SMCE), a provider of products and services for the entertainment industry, is pleased to announce that it has executed an agreement to divest its WiMundo H.S.I.A. Solutions subsidiary ("WiMundo"). The agreement is effective immediately.

Pursuant to the agreement, SMC will return all assets related to the WiMundo acquisition, including but not limited to WiMundo stock, intellectual properties, marketing material, and website development to WiMundo's original stakeholders ("WiMundo Stakeholders"). In return, WiMundo Stakeholders have agreed to forego the issuance of 20,000,000 shares of SMC's common stock. As an inducement to facilitating the divesture agreement and the expeditious manner, the transaction was concluded, SMC will issue 3,000,000 new restricted shares of SMC's common stock to WiMundo consultants. The restricted common shares will be issued in accordance with Rule 144 of the Securities and Exchange Commission. SMC will retain full ownership of Aktiv-Trak intellectual property, marketing material, and all product development.

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 fairground 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.

Rick Bjorklund, President, and CEO of SMC, stated, "I would like to thank WiMundo management and stakeholders; we are confident that WiMundo will continue to seek ways to expand it business. SMC continues 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 to our core businesses. The acquisition opportunities that we will be evaluating must have existing revenues and/or tangible assets to strengthen our balance sheet."

About Spectrum Entertainment LLC

Spectrum Entertainment LLC, thru its marketing brand Spectrum Carnival Midway, has been providing fairground 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. 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, COO
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/637324/SMC-Entertainment-Divests-Its-Second-Non-Core-Wireless-Assets

FAQ

What was the agreement regarding WiMundo by SMC on March 25, 2021?

SMC Entertainment executed an agreement to divest its WiMundo H.S.I.A. Solutions subsidiary, returning all related assets to the original stakeholders.

What is the expected impact of the Spectrum Entertainment acquisition on SMC?

The acquisition is expected to significantly strengthen SMC's revenue and balance sheet, with positive effects reflected in Q2/2021 financial statements.

How much revenue did Spectrum Entertainment generate in previous years?

Spectrum generated $597,153 in 2018 and $618,204 in 2019 but faced a decline in 2020 due to the pandemic.

What are the anticipated future revenues for Spectrum Entertainment?

Spectrum anticipates a rebound in revenues for fiscal year 2021 as the economy reopens.