$SMCE pleased to announce that it has executed a definitive purchase agreement to acquire 100% of Michigan-based Spectrum Entertainment LLC ("Spectrum LLC") for equity of SMC Entertainment. SMC expects to close this acquisition soon and will release acquisition terms after closing.
Spectrum Midway & Carnival, the marketing brand name owned and operated by Spectrum LLC, specializes in fair ground rides, games, food and fun for the whole family. Spectrum LLC has been in operation for over 25 years. Revenues for fiscal years 2018 and 2019 were $597,153US and $618,204US respectively. Spectrum LLC experienced a significant revenue drop for fiscal year 2020 due to the challenging time the US economy experienced and expects a recovery in revenues for fiscal year 2021 as the economy opens up and market conditions improve. As of fiscal year end 2020, Spectrum LLC net tangible assets were $1,569,000US. All figures are unaudited.
SMC will leverage this acquisition to expand its business plan into well-established and proven revenue generating businesses that require minimal operating capital to run its existing infrastructure. SMC intends to invest additional capital to expand Spectrum LLC's market share and add additional games and rides.
