Stratus Media Group Enters into Binding Letter of Intent to Acquire Hot Import Nights, a Leading Producer of U.S. Automotive ...
July 28 2010 - 8:30AM
Business Wire
Stratus Media Group, Inc. (OTCBB:SMDI), a live entertainment
company, today announced that it has entered into a binding letter
of intent to acquire the assets of Hot Import Nights Events and
Productions, the owner and operator of live motor sports events
including Cars&Models and Hot Import Nights (HIN), a leading
series of indoor/outdoor car, music and pop-culture festivals. HIN
is projected to record over $4 million in revenues in 2010.
Hot Import Nights is operating the 2010 Tour in conjunction with
Number One Parts, Inc. (NOPI) www.HINNOPI.com , an Atlanta-based
distributor of stock, custom and performance parts. The tour
travels to seven major domestic markets and major corporate
sponsors already on board include Mazda, McDonalds, AT&T,
Coca-Cola, NOS Energy Drink, Toyota and the US Marines. Past tours
have attracted approximately half a million automotive and
entertainment enthusiasts each year.
The 2010 Tour is built around the car-customization scene, and
wrapped in a new racing tour and ear-thumping, designer-driven
nightclub atmosphere; Hot Import Nights brings together the latest
trends in cars, racing, music and style in one high-energy
weekend.
Paul Stevens, CEO of Hot Import Nights & Events said, “We
expect that this acquisition by Stratus Media Group will provide
HIN the ability to expand domestically and internationally. We have
fans in 140 countries around the globe that over time should be
able to attend HIN events in country. Now in our 12th year, the
2010 National Tour theme is ‘Racing into the Future.’ We believe
significant business can be completed with the Stratus Media Group
family of companies and brands in the months and years to
come.”
Paul Feller, President and CEO of Stratus Media Group said, “We
are very excited about the strategic synergies and growth
opportunities that Hot Import Nights and its executive team will
bring to the automotive and music verticals of SMDI. HIN provides a
dedicated domestic and international fan base that is unique and
complimentary to our existing auto sport and entertainment
vertical. HIN targets the fast-growing market for customized and
performance cars and trucks and we believe that the acquisition of
HIN will allow greater sponsorship opportunities for Stratus while
consolidating cost centers within our already extensive auto show
and auto racing event vertical. HIN is projected to book over $4
million in revenues in 2010 and we believe that by combining cost
centers and increasing sponsor value, we can increase those
revenues and corporate sponsorship retention dramatically.”
The acquisition of HIN assets includes a three year earn out in
which SMDI will book 100% of all revenue for HIN following the
close of the acquisition, which is expected in the next two months
and is conditioned only on satisfactory due diligence and final
documentation.
About Stratus Media Group,
Inc.
Headquartered in Santa Barbara, with offices in Los Angeles,
Geneva, Switzerland, and Perugia, Italy, Stratus Media Group Inc.
(SMDI) is an owner, operator and marketer of live entertainment
events and all media rights. In addition, the Company owns Stratus
Rewards Visa White Card, a ultra exclusive consumer rewards
marketing and redemption program, providing premium redemption
benefits to members in the form of VIP event access, luxury trips,
private jet travel, luxury automobiles, high-end merchandise and
other rewards. www.stratusmediagroup.com
About Hot Import Nights (HIN
Events)
HIN Events in its 12th year as a leading producer of national
touring automotive lifestyle events. Based in Southern California,
the company produces Hot Import Nights and Car&Model shows as
the nation's largest and most unique indoor/outdoor car, music, and
pop-culture festivals. www.hotimportnights.com and
www.hinnopi.com
Forward Looking Statements
Statements in this press release relating to plans, strategies,
projections of results, and other statements that are not
descriptions of historical facts may be forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 and the Securities Acts of 1933 and 1934. Forward-looking
information is inherently subject to risks and uncertainties, and
actual results could differ materially from those currently
anticipated due to a number of factors. Although the company's
management believes that the expectations reflected in the
forward-looking statements are reasonable, it cannot guarantee
future results, performance or achievements. The company has no
obligation to update these forward-looking statements.
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