-- Source: Stratus Media Group, Inc. --
International MMA Advances Stratus’ Global Growth Strategy
SANTA BARBARA, Calif., Oct 22, 2009 -- Stratus Media Group, Inc. (OTCBB: SMDI), a live entertainment company, announced today that it has entered into an agreement to acquire a 95% interest in ProElite, Inc. (PK: PELE), a sports, entertainment and media company that has produced arena-based mixed martial arts (MMA) events.
Prior to the sale of significant revenue-generating assets, ProElite recorded $13.5 million in MMA event and television revenues during the 18 months ended June 2008. ProElite has engaged in an extensive restructuring that included the sales of these revenue-generating assets for cash and a share of future revenues, significant expense reductions, the elimination of $12 million of direct and contingent liabilities and the shedding of unprofitable subsidiaries.
“ProElite, a globally recognized brand, is a great addition to our portfolio of companies and live entertainment events and provides an experienced management team with demonstrated success in operating MMA events and generating broadcast revenues,” stated Paul Feller, President of Stratus. “By combining ProElite with sufficient capital and Stratus’ strengths in event production and sponsorship sales, we intend to re-establish ProElite as a leading international MMA company.”
Stratus will purchase Series A Preferred Stock of ProElite, convertible into 95% of the outstanding Common Stock of ProElite, for $2,000,000. The acquisition will be closed when certain conditions have been met, which the company expects will occur within the upcoming weeks. Upon closing, all of the current directors of ProElite will resign and the board of directors of ProElite will consist of Paul Feller and Glenn Golenberg, both current members of Stratus’ board of directors, and a third director to be announced. Paul Feller, Stratus’ Chief Executive Officer, will become ProElite’s Chief Executive Officer. Certain present and former key ProElite executives will continue employment with ProElite or will enter into employment agreements with Stratus.
About ProElite, Inc. (www.proelite.com)
ProElite, Inc. historically has delivered exciting entertainment experiences in the world of mixed martial arts (MMA) with live arena-based entertainment events, cable television programming on Showtime Networks and community-driven interactive broadband entertainment via the Internet. ProElite plans to deliver live MMA fight events that showcase the world's top fighters internationally. ProElite's interactive business, ProElite.com, plans to capitalize on the growing popularity of the sport of mixed martial arts.
About Stratus Media Group, Inc. (www.stratusmediagroup.com)
Incorporated in November of 1998, Santa Barbara based-Stratus Media Group is an owner, operator and marketer of live entertainment and sporting events. The company is primarily focused on internal growth and acquisitions within the live entertainment-related market -- including action sports, automotive shows, college sports, food events, motor sports, concerts and music festivals, running events, diversified media marketing, trade shows and expositions, and talent management. In addition, the company intends to expand its consumer rewards marketing and redemption activities through its Stratus Rewards Visa White Card -- providing exclusive redemption benefits to its cardholders in the form of VIP event access, luxury trips, private jet travel, luxury automobiles, high-end merchandise and other rewards for specified levels of use.
Forward Looking Statements
Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors which include but are not limited to risk factors inherent in doing business. Although the company's management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.
Thursday, October 22, 2009
-- Source: Stratus Media Group, Inc. --