Message #17 From:
NewsBot Date: July 20, 2006 03:00:00 AM
LFDG News LitFunding Announces Engagement of Great Eastern Securities for $50 Million Raise for Global Universal
LAS VEGAS--(BUSINESS WIRE)--July 20, 2006--LitFunding Corp. (OTCBB:LFDG) announced today that its wholly owned subsidiary, Global Universal Film Group ("Global Universal"), has signed an agreement with Great Eastern Securities ("Great Eastern"), an NASD registered broker dealer, for the purpose of engaging Great Eastern to raise $50,000,000.
The capital raise by Great Eastern is on a best efforts basis currently structured as Series A Medium Term Notes.
According to Jacqueline Giroux, President and CEO of Global Universal, "The funds being raised by Great Eastern will play an integral part in our ability to produce and distribute motion picture films, DVDs packaged with original manuscripts, music publishing and merchandising." Morton Reed, President of LitFunding, Global Universal's parent company, indicated that "with Ms. Giroux's background as a writer, producer, actress, and director of feature films, in addition to her experience in structuring co-productions between Canada, France and Germany, we anticipate positive results from our relationship."
Global Universal's goal is to film back-to-back low-budget films for Movie, Television and DVD releases. Utilizing Co-production Treaty Financing, along with tax incentive jurisdictions, Global Universal management believes that its background in entertainment provides an opportunity to compete in the current market of niche films.
LitFunding, until recently, has been specializing in the funding of litigation, through its wholly owned subsidiary LitFunding USA. Recently LitFunding acquired Global Universal through a merger with one of LitFunding's subsidiaries, Silver Dollar Productions. Morton Reed was pleased in the confidence that Great Eastern Securities has shown in Global Universal's business. "Although we recognize that the engagement is for Great Eastern to use its best efforts, the fact that Great Eastern is pursuing this money raise of $50 million for Global Universal is exciting to us," stated Mr. Reed.
The statements in this press release regarding the benefits of the Great Eastern Securities Agreement, and any other effects resulting from any of the above are forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, the inability of Great Eastern to raise the capital on a best efforts basis, the risks and uncertainties of entering into a new business, risk inherent in the movie production business, the costs of operations, delays, and any other difficulties related to LitFunding's business operations and those of its subsidiaries, risks and effects of legal and administrative proceedings and governmental regulation, future financial and operational results, competition, general economic conditions, and the ability to manage and continue growth.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements LitFunding makes in this news release include market conditions and those set forth in reports or documents it files from time to time with the SEC. LitFunding undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
