CMG HOLDINGS GROUP IS ENTERING INTO JOINT VENTURE
September 11 2020 - 10:00AM
InvestorsHub NewsWire
Chicago,
IL -- September 11, 2020 -- InvestorsHub NewsWire --
CMG Holdings Group, Inc. (CMGO/OTC)
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.
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.
Disclosure
Statement
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.
Contact
Glenn Laken
CEO
CMG Holdings Group,
Inc.
(773) 770-3440
glennbrlaken@gmail.com
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