Grand Entertainment & Music, Inc. (PINKSHEETS: GMSC) would like to offer an update on its recent buyout proposal.
Last week, a private company signed a non-binding letter of intent to purchase Grand Entertainment's outstanding common shares. Officers, Board Members, and consultants met over the weekend to discuss the buyout proposal, and after several days of meetings it was decided that the buyout is not in the best interest of the company and its shareholders.
Grand Entertainment is dedicated to doing what is best for the company and its shareholders. It was decided that this is not the right time to sell, nor was the offer price reasonable. If selling the company becomes an option again in the future, the company would demand a much higher per share price. During this weekend meeting, the company also considered a plan to return some shares back into treasury, which would reduce the overall outstanding share count. All details will be forthcoming once they are reviewed and finalized.
"It is always a good idea to entertain all offers," stated president Fred Berlin. "Due to the recent success of the Qbanito CD launch party and other future plans and events, it just isn't the right time to sell. After several hours of meetings with consultants and board members, we decided that it was in our shareholders' best interest to reject the offer. We have a lot of big things planned for the future, and we felt that the $.02 offer was just too low."
The company would also like to take this opportunity to announce that the corporate website has been updated with the latest pictures from the Qbanito Spanish album launch party. Please visit www.gmsc-info.com.
About Grand Entertainment & Music, Inc.
Based in Montreal, PQ, and incorporated in November 1998, the Company is an independent music company that produces, promotes, markets and controls the copyrights on music recordings in multiple formats. Additionally, the Company's multi-million dollar studios produce voice-overs and sound tracks for commercials and film, which are used on the radio, television and in theatres. Cherry Studios has produced thousands of records in its studios and has to its credit a total of 23 gold and platinum records. GEM, a pioneer in the Internet distribution and digital download field, currently owns and controls all its content and distribution rights. Having both content and distribution rights will enable the company to fulfill its mission of becoming a leading consolidator of quality music catalogues as well as a premier production, recording, publishing and Internet distribution company in the music industry.
Safe Harbor Statement
This release contains forward-looking statements with respect to the results of operations and business of Grand Entertainment & Music (GEM), Inc., which involves risks and uncertainties. The Company's actual future results could materially differ from those discussed. The company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the "Safe Harbors" provision of the Private Securities Litigation Reform Act of 1995.