GECC Gets $5 Million To Finance Step To Spanish TV Network
June 6 (Jack s Journal) - Golf Entertainment, Inc. (OTCBB: GECC), got its first $5 million in funding to finance the first steps toward its declared plan to build a new Spanish language TV network, according to CEO Dr. Tim Brooker.
O. Burce Mikell & Associates of Warrior, AL completely subscribed the 5 million unit private placement sought by GECC since May 15. OBMA paid $1.00 per unit. A unit is comprised of one common share and one warrant to purchase one common share at $0.05 a period of three years from closing.
The resulting value per share in the transaction was $0.525. OBMA escrowed 50% of the purchase price immediately and is expected to conclude the transaction shortly.
GECC stock closed Wednesday at 0.07, up 0.01, but today s funding news may exert heavy upward pressure on the stock which rose to 0.12 and beyond on news of the network plan before an abortive major selloff by a single shareholder erased some of the gain.
Said Brooker: We are delighted to have OBMA onboard as a strategic capital partner in our growth plan. With the first offering completed, we will commence a second round private placement in late June.
(Alabama, where the funding firm is headquartered, is one of the prime areas where GECC intends to expand it operations with two new TV stations in fiscal 2002.)
Funds will be put to work to activate GECC s step-by-step blueprint to span the nation with Spanish language transmitting stations, beginning with the creation of a 3-station core, including the current flagship station, 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.
From that 3-station base, GECC plans to obtain FCC licenses build economical pre-fab station transmitters in 10 locations in Arkansas, Alabama, Mississippi, Tennessee, and Georgia, targeting selected small towns with mushrooming Hispanic populations, and then to move of to establish 15 more stations along the east coast of the US.
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.
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.
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