CinemaStar Luxury Theaters announces short-term financing package.SAN DIEGO--(BUSINESS WIRE)--April 22, 1997--CinemaStar Luxury Theaters Inc. (Nasdaq:LUXY) Tuesday announced that it has reached an agreement with PCI (1) (Payment Card Industry) See PCI DSS. (2) (Peripheral Component Interconnect) The most widely used I/O bus (peripheral bus). Inc. under which PCI will loan $2 million to support in part CinemaStar's theater-expansion program. The loan was part of an agreement wherein CinemaStar granted exclusive concession rights to all existing theaters to PCI. The loan is due in two years and is secured by certain of the company's assets. John Ellison Jr., CinemaStar president and chief executive officer, said the funding will be used in part to support the company's expansion of its Ultraplex multiscreen theater entertainment centers, including the soon-to-be-opened expansion of the Mission Marketplace 8 in Oceanside, Calif., to 13 screens. Ellison said that the company is continuing to seek longer-term financing. CinemaStar's expansion plans will require it to obtain significant additional debt or equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. to complete any further expansion program. Separately, in response to inquiries generated from an incomplete media report about management stock sales, CinemaStar clarified that recent stock selling by members of senior management was attributed to margin calls. CinemaStar Luxury Theaters, founded in 1989, currently operates seven first-run movie theaters, with a total of 64 screens, in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . CinemaStar theaters feature high-quality projection and sound capabilities, including LucasFilm THX A design system that provides realistic sound playback for movie and home theater from THX, Ltd., San Rafael, CA (www.thx.com), an independent spin-off from Lucasfilm, Ltd. The THX Sound System was developed during the production of the Return of the Jedi in 1982 and named after George Stereo Surround Sound An audio recording and playback system that uses five or more channels plus a subwoofer channel. See 5.1 channel and 3D audio. environment system in most auditoriums, along with luxury amenities such as high-back reclining seats and extra wide aisles between seat rows. -0- The information contained in this news release contains certain forward-looking statements that involve risk and uncertainties, such as the statements of the company's plan, objectives, expectations and intentions. The company's actual results could differ materially from those indicated by such statements as a result of various factors, including those discussed in the company's Form 10-KSB and Form 10-QSB on file with the Securities and Exchange Commission. CONTACT: CinemaStar Luxury Theaters Inc., Oceanside John Ellison Jr. or Alan Grossberg, 619/630-2011 or Pondel Parsons Parsons, city (1990 pop. 11,924), Labette co., SE Kans.; inc. 1871. It is a shipping point for dairy products, grain, and livestock. Manufactures include ammunition, wire and paper products, plastics, and appliances. & Wilkinson, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Craig Parsons, 310/207-9300 |
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