|Delayed - 01/27 03:59:45 pm|
CMG : Enters Into Joint Venture
|09/11/2020 | 10:01am|
CHICAGO, Sept. 11, 2020 /PRNewswire/ -- CMG Holdings Group, Inc. (OTC: CMGO) announces the Company is entering into a J.V. in the pre-owned gym equipment market. CEO Glenn Laken stated that he has made a study of the market and has located a perfect partner for the venture. A young entrepreneur founded a company, Desert Sky Fitness, with $10,000 one year ago and in that year, he generated 1.5 million dollars in sales which is explosive growth in the business. Projections are the following: Year one; sales $7.5M / net $1.75M; Year two; $15M / net $3.5-3.75M., Year three; $25M/ net $6-7M.
With the unfortunate events of the past year, the pre-owned equipment market has exploded. Many gyms and health facilities have gone out of business which has created a lucrative pre-owned equipment market. Said Laken: "We will thrive in this market. We have begun to set up contacts to sell equipment into Europe, the Middle East, and the U.S. Our J.V. partner's contacts are well-established, and we will come firing out of the blocks."
The present market for pre-owned fitness equipment is $5.7 billion dollars, projected to grow to over $10 billion in three (3) years. At present, there are no major players in the market. Through this J.V., CMG Holdings is going to make a serious effort to step into that void. Management believes there is a real opportunity to roll-up some of the smaller players and attack this niche as a first-mover.
CMG Holdings is waiting to close on a Fed MSLP loan, which is non-dilutive and attractively priced. If the loan does not close in a reasonable timeframe, management expects to have alternative funding in place that is targeted to be non-dilutive, mitigating investor concerns. In closing Laken said: "As promised, this is our shareholder update. We are very excited about this venture and the future of the creation of this J.V. We hope to be back next week with another important update. I'd like to thank all of our CMGO shareholders for their interest and loyalty."
About CMG Holdings Group, Inc.
CMG Holdings Group, Inc. is a Chicago holding company whose primary operating subsidiary is XA – The Experiential Agency, Inc. (http://www.experientialagency.com) – which engages in the alternative advertising, digital media, experiential and interactive marketing, and entertainment sectors. XA is involved in production and promotion, event design, sponsorship evaluation, negotiation and activation, talent buying, show production, stage and set design, and data analysis and management activities. The business also offers branding and design services, such as graphic, industrial and package designs across traditional and new media, public relations, social media, media development and relations, and interactive marketing platforms to provide its clients with customary private digital media networks to design and develop individual broadcasting digital media channels to sell, promote, and enhance their digital media video content through mobile, online, and social mediums. XA serves clients across the marketing communication industry. Separately, CMG Holdings Group owns Lincoln Acquisition Corp., a subsidiary formed to manage its portfolio investments.
Statements in this press release about our future expectations, including without limitation, the likelihood that CMG Holdings Group, Inc. will meet minimum sales expectations, be successful and profitable, bring significant value to its stockholders, and leverage capital markets to execute its growth strategy, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. CMG's business strategy described in this press release is subject to innumerable risks, most significantly, whether the Company is successful in securing adequate financing and materially decreases its convertible debt. No information in this press release should be construed in any form shape or manner as an indication of the Company's future revenues, financial condition or stock price.
CMG Holdings Group, Inc.
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