Sack Lunch Productions Settles $1.05M Debt
Salt Lake City, Utah -- December 29, 2015 -- InvestorsHub
NewsWire -- Sack Lunch Productions, Inc.
(OTC
: SAKL) entered into a Settlement Agreement that eliminated a
current liability of $1,051,387 through the issuance of restricted
common stock. The Settlement Agreement was an integral part of the
Acquisition Agreement which increased SAKLs ownership in all Slide
the City entities and The Lantern Fest, LLC from 66.6% to 100%.
The Settlement Agreement coupled with long term executive
employment agreements eliminated profit sharing employment
agreements with two of the founders of Slide the City and The
Lantern Fest.
Pursuant to the terms of the Settlement Agreement, 13,142,337
shares of SAKLs restricted common stock were issued to each of the
three founders of STC and TLF and Mr. Surber. The shares are
restricted as well as subject to a Lock-Up Agreement. Each of the
founders are deemed affiliates of SAKL as a result of the above
discussed series of transactions.
The ability of affiliates to resell shares pursuant to Rule 144
is not available to affiliates of SAKL until such time as a Form 10
has been filed and effective for 12 months. The shares upon
conclusion of the Lock-Up Agreement could be sold pursuant to Rule
144 at a rate of 1% of the total issued and outstanding shares of
SAKL every 90 days provided SAKL is fully reporting, otherwise they
may not be resold into the public markets.
Richard Surber, CEO commented, Retaining the founders of our
event companies, acquiring the remaining 33.3% of the Slide the
City entities and The Lantern Fest as well as settling over $1M in
debt prior to year-end is a strategic move designed to further
strengthen SAKLs financial position. The most recent transactions
will improve available cash, conserve cash flows, improve
efficiencies, improve the balance sheet and help ensure the
retention of our event management team in a fashion designed to
align their interests with SAKL long term operational and stock
performance.
Mr. Surber continued, Retaining a solid management team is the
hallmark of all successful companies. I believe the long term
retention of the founders is key to continuing our aggressive
growth through expansion. Our expansion plans include the creation
of new, innovative events as well as consolidating other well-known
events and brands in the industry through further acquisitions. Our
collective vision for the future is to build Sack Lunch Productions
into the premier event production company which is an ambitious
goal given that the event business is a multi-billion dollar
industry.
Please visit our websites to find the next event in your area:
www.slidethecity.com, www.thelanternfest.com, www.thedirtydash.com, and
www.colormerad.com.
About Sack Lunch Productions, Inc.:
Sack Lunch Productions, Inc. (OTC:
SAKL) is an entertainment company that operates and franchises
action oriented events in the U.S. and internationally. SAKL's
events include: Slide the City (1,000 foot long water slide for
families and kids), Color Me Rad (5k color race), The Dirty Dash
(mud and obstacle run), and The Lantern Fest (nighttime festival
with lantern lighting and launch). Learn more about SAKL's
operations at www.sacklunchproductions.com,
www.slidethecity.com, www.thelanternfest.com, www.thedirtydash.com, www.colormerad.com, and www.green-endeavors.com.
SAKL strongly encourages the public to read the above
information in conjunction with its reports filed at
www.otcmarkets.com. SAKL will require a significant influx of
capital in order to effectively execute upon its various
operational plans. The actual results that SAKL may achieve could
differ materially from any forward-looking statements due to such
risks and uncertainties. The effects of the settlement on our
financial statements may be subject to adjustments based upon our
auditors review which could material impact the ultimate value SAKL
may book the transaction for. This press release must be read in
conjunction with agreements filed with OTC Markets to gain a
complete understanding of the transactions discussed herein.
Investors should not invest more than they can afford to lose.
IR CONTACT:
Bruce Haase
RedChip Companies, Inc.
800.733.2447, ext. 131
bruce@redchip.com