The Stellar Companies Inc. The Sports & Shopping Network Inc.
Under the agreement, EVRO will acquire 98% ownership of TSSN along with an option to acquire the remaining 2% from a number of minority shareholders, in exchange for controlling interest in EVRO. In effect, this would take TSSN public.
Contemporaneous with the TSSN acquisition, EVRO plans to raise $2,000,000 through a private placement of its restricted common stock. Upon the funding of the private placement, the TSSN acquisition will be deemed complete, and EVRO board of directors will be reconstituted, and EVRO will change its name and NASDAQ symbol to TSSN. Upon the exchange of shares, The Sports & Shopping Network will become a wholly owned subsidiary of TSSN.
TSSN will participate in the $2.5 billion television home shopping market, specializing in the areas of sports related products and accurate up-to-the-minute information and scores of all major sporting events. TSSN's primary competition includes Home Shopping Network, QVC Network and Shop at Home which sell jewelry, clothing, home products, art and sports memorabilia on a limited basis, mostly in the form of collectible cards and autographed items.
Keith Halford, chief executive officer of ViaTV, TSSN's joint venture partner, was one of the four founders of QVC Network and was the first marketing vice president of Home Shopping Network Inc. Under his leadership, sales at Home Shopping grew from only $600,000 in 1982 when he joined the company to $128 million in 1986 when he left to co-found QVC Network. During his tenure at QVC, sales grew to $800 million annually. "I have long felt that sports related products will become one of the strongest segments of this industry. We are very pleased that TSSN has chosen ViaTV as its distribution partner."
In November 1994, TSSN commenced limited operations in 3.5 million test market satellite households and expanded to an additional 7.5 million cable homes earlier this month. TSSN has averaged approximately $50,000 in revenues each weekend for the past three weekends. TSSN currently operates on Friday, Saturday and Sunday mornings in the two-hour time slot between 3 and 5 a.m.
Once the additional funding is contributed to TSSN from the EVRO private placement offering, TSSN will continue to expand its television broadcasting schedule. "The TSSN business plan projects prime time broadcasting from 8 p.m. to 6 a.m., ten hours a day, seven days a week. Our gross revenue projections of $55 million in the first year of operation amounts to only 2.5% of the annual revenues of Home Shopping and QVC. We believe that TSSN will exceed our expectations and quickly gain its share of this rapidly expanding market," stated Tom Jensen, chairman of TSSN.
TSSN's plan is to focus on the marketing of sports related products from sporting goods manufacturers as well as highlighting its own sports memorabilia, including TSSN's patented "Magic Moments" talking cards, and its "Cager Classics" sports apparel line.
The corporate offices of The Sports & Shopping Network Inc. are located at 7501 West Irlo Bronson Memorial Highway, Suite 103, Kissimmee, Florida 34747.
CONTACT: The Sports & Shopping Network Inc.
Tom Jensen, 615/549-7466