MONTREAL, Sept. 1, 2005 (PRIMEZONE) -- Grand Entertainment & Music Inc. (Pink Sheets:GENM) announced today that the company's CEO, Fred Berlin, has released an in-depth shareholder letter. This letter may be viewed in its entirety at the company's temporary investor site www.genm-info.com.
This letter provides a historic overview of the company, as well as a guide to all present and future corporate endeavors. Berlin stated, "Even though this letter was originally released Tuesday via our newsletter and website, we felt it necessary to have a formal announcement to ensure that this correspondence reached all interested parties." In this letter, the company called for a "new era at Gem" and offered the following project highlights:
Qbanito: We will have the French version of his album delivered to the market by September 30th.
Convoy Cubano: The entire album has been co-produced with Qbanito and has been arranged by Jesus Perez. Jesus Perez, better known as El-Nino, has an impressive background that includes the arrangement of movies such as "Dance with Me" and the production of chart-topping singles such as the number one hit "Makina Loco."
Other Recording Projects: Grand Entertainment currently has approximately half a dozen albums in production or post-production, and plans to have these released by the end of the year. Gem's bottom line benefits tremendously from these projects by acting as both the label and distributor. On average, the company will take in between $8-$11 per album or single sold. With the average project costing less than $50,000, the company recoups and makes a nice profit with a minimal amount of sales.
Universal Music France: We have recently formed a joint venture with Plein Sud to participate in a licensing agreement with Universal Music Group France (UMGF). We were incredibly excited to learn that less than a week after signing the single,Maria by Qbanito, UMGF had made the decision to pick up the entire album. The particulars of this agreement allow Gem to retain a rolling percentage of sales that increases as certain sales plateaus are reached. In essence, Gem will average approximately $3-$4 per sale. Not only does this agreement present huge revenue potential to the company, but it also opens up the door for other Gem-Latina artists worldwide.
Mango Music World: This project is just as important as the Universal agreement due to the vast amount of titles in Mango's existing catalogues and its exclusive distribution rights. The company is also in final stages of negotiations to obtain additional catalogues with thousands of titles. Gem will benefit greatly from this distribution due to the fact that we now own 100% of the administrative rights to the Mango division.
Website: As many of you know, we have been working on a state-of the-art website that will provide the company with six different potential revenue streams and broaden the scope of Gem's operations. As you can imagine, a site like this takes a significant amount of time to develop. For the time being, we have a static beta site up and running at http://gem.overdrive.ca. We have also developed http://www.genm-info.com for our investors to receive updated stock and trading information.
Fred Berlin stated this shareholder letter, "I believe that with our current and upcoming projects, we are now entering the most exciting and rewarding time in our company's history. In the next few months, we will be signing additional artists and adding to our existing catalogues. We will also be adding a key member to our current team. This future member has been working with us over the past few months. Over this time, he has demonstrated his market knowledge and his expertise in the microcap sector. We believe his guidance will ensure that we do not make the same mistakes of the past. Within the next few weeks, this individual will join our team as a member of our advisory board or as a member of our board of directors. He will ultimately be elected to a position that will allow his experience and know-how to have the greatest positive impact for the shareholders of Grand Entertainment & Music. I am eagerly looking forward to announcing this development and all other progress very soon."
All interested individuals should sign up to receive future weekly newsletters at www.Genm-Info.com.
About Grand Entertainment & Music, Inc. Based in Montreal, PQ, and incorporated in November 1998, the Company is an independent music company that produces, promotes, markets and controls the copyrights on music recordings in multiple formats. Additionally, the Company's multi-million dollar studios produce voice-overs and sound tracks for commercials and film, which are used on the radio, television and in theatres. Cherry Studios has produced thousands of records in its studios and has to its credit a total of 23 gold and platinum records. GEM, a pioneer in the Internet distribution and digital download field, currently owns and controls all its content and distribution rights. Having both content and distribution rights will enable the company to fulfill its mission of becoming a leading consolidator of quality music catalogues as well as a premier production, recording, publishing and Internet distribution company in the music industry.
Safe Harbor Statement
This release contains forward-looking statements with respect to the results of operations and business of Grand Entertainment & Music (GEM) Inc., which involves risks and uncertainties. The Company's actual future results could materially differ from those discussed. The company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the "Safe Harbors" provision of the Private Securities Litigation Reform Act of 1995.