Signature Devices, Inc. Signs Letter of Intent to Acquire 7th Level Entertainment Group, LLC
Signature Devices, Inc. (PINKSHEETS: SDVI)
today announced that the company has signed a letter of intent for the
acquisition of the 7th Level Entertainment Group, LLC. Pursuant to the
terms of the merger agreement, 7th Level Entertainment and its subsidiaries
will become a wholly owned subsidiary of Signature Devices, Inc. upon
closing of the transaction. Current sales for 7th Level Entertainment
Group and its subsidiaries that will be part of the acquisition are in
excess of $2 million and expected to be in the $4-6 million dollar range
for 2009.
“As part of our business plan and in order to build shareholder value, we
have begun to seek acquisitions for Signature Devices, Inc.,” said Kenneth
Hurley, Signature Devices, Inc. Chief Executive Officer. “The mergers and
acquisitions strategy allows us to grow the company at a much faster rate
than trying to do it organically. The acquisition of 7th Level
Entertainment Group will give us greater strength with music and audio
studios, lighting and events in addition to artist management.”
The initial agreement in the form of a letter of intent provides the
framework for a subsequent definitive agreement under which Signature
Devices, Inc. would acquire 7th Level Entertainment Group as a wholly owned
subsidiary. The details of the proposed deal will be included in the
definitive agreement. The letter of intent outlines additional due
diligence, audit work and other terms that must be fulfilled to proceed to
the definitive agreement and to subsequently effect a close of the
transaction.
The plan for 7th Level includes additional acquisitions, the addition of
new members to the management team, and the development of additional
business lines within the entertainment industry while maintaining and
growing Signature Devices, Inc.’s core business. Graffiti Entertainment
will be able to leverage the music and audio studios for game development
as well as leverage the event and artist management for published video
games.
About Signature Devices, Inc. and Graffiti Entertainment, Inc.:
Based in Redwood City, CA, Signature Devices, Inc. creates, develops and
manufactures advanced information technology, including computer systems,
software and electronics products. One of the Company’s premiere
technologies includes a blend of hardware and software for image generation
technology used in video games and simulations. Signature Devices also owns
Graffiti Entertainment, Inc., ( www.GraffitiEntertainment.com ), a publisher
of interactive entertainment software for advanced entertainment consoles.
The information in this press release includes certain “forward-looking”
statements within the meaning of the Safe Harbor provisions of Federal
Securities Laws. Investors are cautioned that such statements are based
upon assumptions that in the future may prove not to have been accurate and
are subject to significant risks and uncertainties, including the future
financial performance of the Company. Although the Company believes that
the expectations reflected in its forward-looking statements are
reasonable, it can give no assurance that such expectations or any of its
forward-looking statements will prove to be correct. Readers are cautioned
not to place undue reliance on these forward-looking statements that speak
only as of the date of this release, and the Company undertakes no
obligation to update publicly any forward-looking statements to reflect new
information, events, or circumstances after the date of this release except
as required by law.