Saddle Ranch Media Inc (SRMX)

[kingpindg]

Automated-X Clarifies Further Details Concerning the Recent Acquisition of Saddle Ranch Pictures, Inc. and the Spin-off of QUICKflickUSA,Inc.

August 27, 2015 08:30 AM Eastern Daylight Time

LAS VEGAS--(BUSINESS WIRE)--Automated-X, Inc. ("AUTX") (OTC PINK: AUTX) clarified today certain details concerning its acquisition of Saddle Ranch Pictures, Inc. ("SRP"), which occurred as of August 15,2015, and the subsequent spin-off of QUICKflickUSA, Inc., which was effective August 21, 2017. This clarification comes in response to several enquiries received by AUTX management since the consummation of these transactions.

After careful analysis of the opportunity to acquire Saddle Ranch Pictures, Inc., and after reviewing the operating results for the 6 months ended June 30, 2015 the Board of Directors as it existed prior to the transactions decided that there is a greater opportunity for revenue and net income growth by acquiring a fully integrated media company producing and distributing motion picture, TV and digital content on multiple platforms, worldwide, than had been afforded by the limited DVD kiosk dispensing model. Thus, when a business opportunity presented itself whereby the Company could acquire an established multi-media company with no cash outlay in exchange for stock, and at the same time repurchase an equivalent amount of its stock in exchange for its existing business, resulting in a transaction with no net dilution to existing shareholders, AUTX’s former board and management determined that it would be in best interests of its stockholders to do so.

Thus, at the closing of the acquisition of Saddle Ranch Pictures, Inc., on August 15, 2015, the Company issued 90 million restricted common shares in a cashless exchange for 100% of the issued and outstanding shares of Saddle Ranch Pictures, Inc., and subsequently, two of the Company’s largest stockholders agreed to each surrender 45 million restricted common shares in consideration for receiving the spin-off of all of the assets and liabilities attributable to QUICKflickUSA, Inc. (which became a privately owned company post-closing). In addition, subsequent to the closing, the former owner of Saddle Ranch Pictures, Inc. announced that he will surrender 30 million common shares (of the 90 million common shares received) to the Company for cancellation, which will further strengthen the Company’s stockholders position by its anti-dilutive effect. Accordingly, the number of issued and outstanding common shares has now been reduced to 87,424,551 of which approximately 7.5 million common shares are in the free trading public float.

Alan Bailey, the AUTX CFO, says “We are all very excited about this transition in the Company’s business model. We believe that the way we effected this change without dilution not only preserved shareholder value but significantly improved it. The adage that “Content is King” has never been more relevant in this time of exploding media platforms and diversity in distribution. I am personally thrilled that an experienced media executive as Philp Cohen has joined us as CEO – bringing with him the established Saddle Ranch Media engine under which with now have three operating divisions: Saddle Ranch Pictures, Saddle Ranch TV and Saddle Ranch Digital, each with completed and in-development projects, proven customer base and distribution expertise. It is also terrific that we have the continuity in top management with experienced executive Michael Marcovsky now taking on the role as President and Chief Operating Officer. At the same time, we would like to take this opportunity to thank Timothy Regnier, John White and the entire QUICKflicksUSA team for their valued contribution to AUTX, and we wish them well and success in their new endeavors.”

http://www.businesswire.com/news/home/20150827005196/en/Automated-X-Clarifies-Details-Acquisition-Saddle-Ranch-Pictures


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