A Once In A Lifetime Opportunity!
Get in on the creation of
A New National Hispanic Language
TV Network
GECC To Transform Itself From A TV Programmer
To A Multi-Station TV Broadcaster With Its Final Goal:
A Coast-To-Coast Hispanic TV Network To Serve
The Fastest Growing Body Of TV Watchers in America!
It will all begin when Golf Entertainment, Inc. (OTCBB: GECC) acquires
· Its first 3 TV stations in 2002
· Another 10 TV stations in 2003
· Another 15 TV stations in 2004
GECC will take the first step by raising $5 million in a private placement of 10% convertible debentures. Target Date: May 15.
At this writing, GECC stock is quoted at only 3¢ a share but when the news gets out, look out!
The Grand Plan of GECC features:
· An Initial Competition-Free “Small Market” Approach
· An Immediate Stream Of Revenue To Sustain Growth
· Unique, Quick Low-Cost Transmitter Construction
· Performance Based Employee Compensation
All the details appear in a copyrighted story in the independent online publication, Jack’s Journal (www.jacksjournal.net)
GECC Plans To Create National Hispanic TV Network
Copyright, 2002, Jack’s Journal
May 9 (Jack’s Journal) - Golf Entertainment, Inc. (OTCBB: GECC) plans a bold transformation of itself, from a provider of Hispanic television programming, into a new national Hispanic language TV network, Jack’s Journal learned today.
The company hopes to finance initial steps with a $5 million private placement of 10% convertible debentures.
The grand plan is to initially develop GECC into a small market, multi-station Spanish language TV broadcaster with three stations by the end of 2002 and another 10 stations in 2003, according to a detailed 12-part business plan prepared by GECC management headed by Chairman and CEO Tim Brooker.
The restructuring would immediately boost GECC annual earnings by a factor of 10 from $50,000 last year to $500,000+ in 2002.
A name change for the corporation is anticipated to better reflect the changing nature of the company’s business.
GECC stock languished at 0.03 on 0 volume at mid-week, but the news could change that rapidly.
The expansive plan calls for completion of the Regulation D, Rule 506 private placement by May 15 to accomplish the 2002 goals. GECC will issue common stock as an incentive to debenture purchasers.
Immediately, GECC would acquire a 3-station core with the acquisition of KVAQ-LP, in Springdale, Arkansas, headquarters of GECC, for a final payment of $291,000, plus two Oklahoma stations, KXIV-LP in Oklahoma City for $500,000, and KTZT-LP in Tulsa, for $250,000.
The acquisition targets previously programmed with Hispanic TV Network, which marketed air times at $20 to $40 per 30-second commercial before reverting to Christian, non-profit programming. GECC plans to create an immediate revenue stream by acquiring the properties and marketing the 3-station Springdale-Tulsa-Oklahoma City regional advertising package.
GECC believes it can establish revenue multiples with these properties that will stabilize at book values of $2 million per station after a year of solid operation.
From that 3-station base, GECC plans to obtain FCC licenses build economical pre-fab stations in 10 locations in Arkansas, Mississippi, Tennessee, Alabama and Georgia at an initial expenditure of $200,000.00.
GECC will file license applications for these 10 stations as a minority program provider and ask for expedited application handling. If it encounters delay in any of the target markets, the company plans to immediately seek either to buy or sign a License Management Agreement in that market.
The company believes it can successfully purchase LPTV or Translator licenses in target communities if the original license application is denied or delayed. Programming conversion to Hispanic language programs can start quickly -- within 36-hours of the signing of an agreement with a current licensee. The application and construction projects will take approximately 8 weeks per station.
By spreading the risk across multiple small market areas, management believes the company will be less vulnerable to competition than if it had invested the same amount of capital in one, large, high-volume market such as Los Angeles, Houston or New York.
GECC’s pre-fab, low budget station construction economies are key to its expansion plan. It can completely pre-assemble a transmitter building and UHF broadcast transmitter system in Springdale and assemble the station on site in 4 weeks per site. Tower construction and final installation will take 12 days more.
Constructed of efficient Bally modular transmitter enclosures, each 8-by-11-foot unit will leave the Springdale operations center equipped with a low-cost solid state, easy-to-maintain Itelco 1000 watt UHF transmitter, tuned to the FCC assigned frequency. Serviceable surplus equipment will be sold for cash and the proceeds used to fund the project.
Purchase of 13 such transmitters in one transaction will further markedly reduce our acquisition costs. Solid state efficiency plus the ability to monitor all 13 in a common system for operating problems from an operations center will eliminate the necessity of stationing a dedicated technician at each site, reducing operating costs.
Added construction savings have been achieved by purchasing structurally sound but slightly blemished materials and by relying on used, rather than new equipment items where possible.
Management is operating on the thesis that a "no-frills" approach to initial operations will result in the highest possible potential for success and establishment of the greatest possible value of the company to shareholders.
GECC will integrate and control the total operation by building a Network Operations Center in Springdale, relying on Internet-based fiber inter-station connections to move video data. Raw footage of a commercial from a distant market can be received and edited at the NOC and returned the same day via the Internet.
Satellite expenses of about $70,000 monthly will be avoided. Broadband, carrier class internet connectivity will allow GECC to move NTSC broadcast quality video and CD quality audio directly to the stations for approximately $7,500/month for the whole system.
Executive staff will be compensated at a flat rate of $48,000 per annum. Management believes in compensation tied to performance. No member of management holds stock options, but an employee options plan is being developed. A salary cap of $94,000 per annum will be in effect during any period in which there is private investor capital at risk.
Former CEO and Chairman, Michael Daniels will return to GECC as Senior VP head marketing and to train and deploy a sales force. Daniels successfully led the company in previous years to sales levels in excess of $35 million annually.
Compensation for sales staff will be based solely on performance. Executives will receive 10% of each revenue item. Line level sales staff will receive 20%. The incentive to sell is obvious. Market areas other than Tulsa and Oklahoma City, will each be handled by one full time sales representative.
The system will be operated by a dozen staffers in addition to the commission sales force. Other staff will be needed as the Oklahoma stations are brought online and will peak when GECC begins to develop 15 more markets along the East Coast.
GECC has overhauled its accounting system to accommodate centralized purchasing.
