San Francisco, CA, July 07, 2016 (GLOBE NEWSWIRE) -- SMC Entertainment, Inc. (OTC PINK: SMCE) (the "Company"), a digital content distribution company, is pleased to announce that it has entered into advanced negotiations with Noteholders to retire over $500,000 in outstanding debt.
The debt settlement will involve the execution of Exchange and Settlement Agreements (the “Agreements”) with multiple Noteholders. In exchange for the full satisfaction of their debt, including both principal and accrued unpaid interest, Noteholders will be issued Series A Preferred Stock (the “Preferred Stock”). The Preferred Stock will be restricted for a minimum of 1 year from the date of issue, and then can be converted to common shares, subject to a lock-up leak-out agreement.
“We are extremely pleased about the opportunity to retire a substantial amount of our outstanding notes and the positive impact it will have on the Company,” Whitcomb said, “and even more excited about the confidence that our current Noteholders are showing in the Company, they are taking an equity stake as opposed to being creditors.”
The Company plans to have the Agreements executed over the course of the coming weeks and will keep the shareholders and investing public well informed of the progress. “This is a great step in the right direction and will pave the way for many things to come, lifting a tremendous financial burden off the Company and allowing the assets to be used for growth and expansion instead of debt service,” added Whitcomb.
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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 SMC Entertainment, members of their 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.
SMC Entertainment, Inc.
2443 Fillmore Street
San Francisco, CA 94115
Telephone: (415) 603-0858
Source:SMC Entertainment Inc.