POINT ROBERTS, WA / ACCESSWIRE / November 16, 2021 / The newly-appointed president of SMC Entertainment, Inc. ("SMC" or the "Company") (OTC PINK:SMCE), Mr. Erik Blum, is pleased to provide a personal message and year-to-date shareholder and performance update.
To our valued shareholders:
I'm excited and thankful for SMC's Board's vote of confidence in me as the new president and it's with great honor to be part of SMC's management team. As your new president, I intend to accelerate our agile and rapid growth strategy by focusing on our immediate goals which include raising capital, become a fully reporting company, up listing to a senior tier and explore additional acquisitions and partnerships. With its recent acquisition announcement of Genesis Financial Inc.("Genesis"), SMC is transforming itself to take advantage of emerging trends in the Financial Technology ("Fintech") industry.
Post-acquisition of Genesis, SMC management team will be an ensemble of seasoned and talented professionals with decades of experience in the financial and Fintech industries, managing and growing public companies to name a few. Our quest for sustainable growth will be relentless for years to come.
To reflect on fiscal year 2021, I'm pleased to provide the following shareholder and performance highlights.
Debt Retirement.
As reported in an earlier press release, SMC retired $600,000 in long term debt in the form of convertible note with zero dilution to our shareholders. In our 2021 third quarter Disclosure Statement filings, under Subsequent Events section, we announced that SMC has forwarded a share cancellation and debt retirement proposal to a former executive of the Company for a lump sum buyout. SMC will make an announcement once the proposal has been accepted and an agreement is executed. SMC will use a similar proposal for other former executives, consultants, and debt holders to retire debt. Our goal is to retire (or convert to preferred stock) as much debt as possible to enhance and strengthen our balance sheet in anticipation of senior capital funding.
Share Capital Structure.
As at 11/15/2021, SMC's total outstanding common shares were 672,126,974 representing 498,339,506 restricted shares and 173,787,468 unrestricted shares. SMC is seeking to cancel a total of 270,000,000 restricted shares: (i) 200,000,000 shares held by a former executive; (ii) 30,000,000 shares held by a former consultant; and (iii) 40,000,000 shares from unwinding a prior acquisition. SMC will be creating preferred stock series to incentivize its management team and company insiders, preserving common shares for capital funding while minimizing dilution. At least one preferred stock series will have super-voting rights providing management with expeditious execution of corporate actions.
Please note, SMC's share count of 672,126,974 outstanding and 498,339,506 restricted is the correct count compared to what OTC Markets is displaying on our profile. This 20,000,000 share discrepancy stems from an April 1, 2021, share cancellation that SMC already accounted for, however, SMC's Transfer Agent has not processed the cancellation request. SMC and its Transfer Agent are rectifying the discrepancy.
Unwinding of Spectrum Entertainment LLC Acquisition.
As reported in an earlier press release, SMC announced it entered in discussion with the former members of Spectrum Entertainment LLC("Spectrum") to rescind SMC's acquisition of Spectrum. As part of the rescission agreement, SMC is seeking (i) the repayment of $145,274.93 which includes payments made by SMC to Spectrum's lenders, legal and accounting fees; and (ii) the return and cancellation of 40,000,000 common shares issued to Spectrum members as consideration for acquiring Spectrum. To secure its rightful ownership and protect its interest in Spectrum, until Spectrum repays owed amounts and the return of 40,000,000 shares, SMC filed a Uniform Commercial Code (UCC) filing in the states of Michigan and Wisconsin against Spectrum. SMC took these extra measures to secure, protect and preserve its investment and equity. SMC's attorney is drafting a demand letter to Spectrum seeking an amicable resolution to unwind the acquisition. In the event Spectrum decides to be uncooperative, SMC will explore other options including but not limited to seizing and selling off Spectrum's equipment to recover what's owed to SMC plus additional costs.
Non-core Wireless Asset Divestures.
In prior press releases, SMC announced the complete divesture and sale of previously owned wireless technology assets. One of the assets was sold to Wyoming-based privately held Aktiv-Trak, Inc. ("Aktiv-Trak") for $600,000 in cash and future Aktiv-Trak common shares ("Aktiv-Trak Shares"). Aktiv-Trak will pay SMC a minimum of $250,000 in cash and the balance in either cash, Aktiv-Trak Shares, or a combination of both. Total cash received year-to-date from Aktiv-Trak is $102,000.
In summary, fiscal year 2021 has been a challenging year not only for SMC's management but also for our valued shareholders. As we get closer to completing our acquisition of Genesis, we look forward to a more rewarding 2022. I am certain we will succeed and look forward to better times.
Sincerely,
Erik Blum,
President
SMC Entertainment Inc.
About SMC Entertainment, Inc.
SMC's multi-discipline revenue approach provides a building block to enhance revenue growth thru acquisitions. For more information, visit www.smceinc.com.
Press Release Contact:
Ronald E Hughes
Chief Executive 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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