CMG Holdings Group Discusses Its Terms of Agreement, Profit Opportunities, With Its New Jersey Oil Venture
CHICAGO, Feb. 16, 2023 (GLOBE NEWSWIRE) -- via CMG Holdings Group, Inc. (OTC: CMGO) today shared with its shareholders and potential investors terms of its agreement with New Vacuum Technologies, LLC (NVT) as part of the joint venture in southern New Jersey.
The project removes impurities from low-grade oil and turns it into a higher grade of oil, and construction is ongoing, with completion expected shortly.
- CMG Holdings Holdings Group will receive seven percent of the profits generated at the facility on an ongoing basis beginning with the start-up of operations.
- CMGO will be repaid at the rate of interest of ten percent per annum for money loaned to the joint venture. If this loan is completely repaid by the end of 2024, NVT can buy back CMGO’s profit share by making an additional one-time payment to CMGO of $3.6 million. CMGO maintains a preferred status for loan repayment.
- If the loan is completely repaid by the end of 2025, NVT can buy back CMGO’s profit share for a one-time payment of $4.8 million.
- If the loan is not repaid by the end of 2025, NVT will convert remaining debt into equity in its partner company, North Jersey Petroleum Operations, which owns 17 percent of the joint venture.
About CMG Holdings Group, Inc.
CMG Holdings Group, Inc. () is a Chicago holding company whose primary operating subsidiary is XA – The Experiential Agency, Inc. () - 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, including 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 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.
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