SACRAMENTO, Calif., May 14, 2000 (BUSINESS WIRE) -- CMI Holdings Group, Inc. (OTC-Pink Sheets: CMIH) is preparing to close the acquisition of a majority of the assets of an online retailer that the Company feels will be a cornerstone in its rapid corporate growth. The closing is expected to happen within the week, and CMI will take over ongoing operations immediately.
The acquisition is estimated to cost the company $140,000, and as a part of funding the transaction the company has issued 33,888,888 shares. The new issuance reflects 4.78% of the shares of common stock that will now be issued and outstanding. The funding agreement is not a convertible debenture and the majority of the shares are being issued to an existing long-term shareholder.
The transaction is expected to positively affect the company's immediate and long-term outlook, and brings several former and existing business relationships with it.
Other Recent Developments
CMI Holdings Group, Inc. is pleased to unveil the first of the wireless technology products they will be distributing, Sonic2ners. This item, which is now beginning production, is anticipated to be the next generation Walkman or the Walkman of the 21st Century. Sonic2ners is a worldwide patented, self-contained FM Headphone unit that, by utilizing bone conductance technology, produces concert like sound with the unique and revolutionary benefit that it does not cover or rest on the ears. Users get to listen to their favorite music without the hassle of wires and without being excluded from sounds of the outside world.
CMI Holdings Group, through its BTP Distribution Division, recently hired Sarah Rosenberg to develop sales into specialty and consumer electronic stores. At this time, BTP fulfills for Vstore (hosting over 125,000 web sites), Amazon.com, Borders, Barnes & Noble, a multitude of web companies, several hundred bricks and mortar customers, and libraries around the country.
CMI Holdings Group's CEO, Ross Rojek has done an interview with Market Marquee that is available at http://www.marketmarquee.com .
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements related to the future anticipated direction of the high-technology industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of CMI Holdings Group, Inc. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, and domestic and global economic conditions.
CONTACT: CMI Holdings Ross Rojek, 916/567-2490
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KEYWORD: CALIFORNIA INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS CONSUMER/HOUSEHOLD ELECTRONIC GAMES/MULTIMEDIA ENTERTAINMENT RETAIL E-COMMERCE
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