LOS ANGELES, Aug. 15, 2012 /PRNewswire/ -- Mass Hysteria Entertainment Company, Inc. (OTCBB: MHYS) today announced that it has entered into a non-binding Memorandum of Understanding to acquire a real estate investment/development group which owns properties consisting of a 16 unit rental apartment building with adjacent land with planned use for a second apartment building and 12.4 acres of land for development located adjacent to a key highway intersection both located in Southern California. In addition, the portfolio includes a beachfront hotel and casino complex called Morgan's Cove Hotel & Casino and 0.83 acres of land currently planned for the building of a 74 unit condo project called the Palacio, both located in Jaco Beach, Costa Rica.
In addition, MHYS has entered into a non-binding Memorandum of Understanding to acquire an international air cargo business currently operating in Pan-Asia, with plans to acquire aircraft and routes in North America and European regions.
The acquisition of both businesses will be made pursuant to the issuance of MHYS securities for all of the stock of such businesses and, upon closing, these businesses will be wholly-owned subsidiaries of MHYS. The acquisition of both businesses is subject to, among other things, completion of due diligence; completion of financial audits of both businesses; conclusion of definitive agreements; and procurement of any governmental approvals. Definitive documentation is expected within 90 days. The acquired companies are expected to bring substantial assets in both real estate and aircraft, as well as revenues and operating cash flow.
MHYS will continue to operate its movie business through a wholly-owned subsidiary to be formed concurrently with closing of the acquisitions.
Daniel Grodnik , CEO stated, "Our intent with these acquisitions is to provide diversity to Mass Hysteria's operating base, as well as enhancing shareholder value. While we will continue on producing and developing opportunities in the motion picture and TV business, we recognize that these efforts will still take some time to show operating results. We expect that the acquisition of these two revenue producing and cash flowing businesses will provide working capital for our company. Each company acquired will be managed as a separate operating wholly-owned subsidiary under the overall supervision and management control of MHYS. We are also thrilled to bring aboard the top management of each company, who will ensure business continuity and leadership as heads of each subsidiary."
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