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GOLDSTAR VIDEO AGREES TO CANCEL SINOMAG AGREEMENT AND RETIRE PREFERRED STOCK AND CANCEL NOTE ISSUED TO SINOMAG IN LICENSING TRANSACTION

GOLDSTAR VIDEO AGREES TO CANCEL SINOMAG AGREEMENT AND RETIRE PREFERRED
 STOCK AND CANCEL NOTE ISSUED TO SINOMAG IN LICENSING TRANSACTION
 FREEHOLD, N.J., May 14 /PRNewswire/ -- Goldstar Video Corp. (OTC Bulletin Board: GVID) today announced that it has signed an agreement which would cancel a prior agreement with SINOMAG USA Inc., to license the right to distribute 25 animated films from SINOMAG on video. This transaction was initiated by representatives of Goldstar in response to claims from third parties that SINOMAG did not have the authority to enter into the license. Under the accord, the consideration originally paid by Goldstar, a $1.2 million note and 2.8 million shares of Goldstar preferred stock, would be canceled, in return for Goldstar's relinquishment of its rights to the films.
 Goldstar has indicated that the animated films have not generated any revenue to date, although the films do represent a substantial portion of the company's film assets available for distribution. Accordingly, Goldstar believes that relinquishing rights to the animated films will not impact current revenues but will require substantial revision to its balance sheet to reflect the elimination of the SINOMAG film rights, in addition to the cancellation of the note and retirement of the preferred stock.
 Goldstar is engaged in the sale of licensed video tapes and related merchandise in supermarkets, drug stores and mass merchandise stores. Goldstar is a Utah corporation with limited trading activity on the bulletin board under the symbol GVID.
 -0- 5/14/92
 /CONTACT: Edward Kiem Sr., of Goldstar Video, 800-552-GOLD/
 (GVID) CO: Goldstar Video Corp. ST: New Jersey IN: ENT SU:


AL-KJ -- LA031 -- 0403 05/14/92 16:13 EDT
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Publication:PR Newswire
Date:May 14, 1992
Words:275
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