NEWARK, Del., Jan. 8, 2008 (PRIME NEWSWIRE) -- Theater Xtreme Entertainment Group, Inc. (OTCBB:TXEG) (http://www.theaterxtreme.com), a nationwide retailer and installer of real movie theaters for the home, has reached agreements with certain of its accredited investors amending certain provisions of debentures due in November 2007.
Additionally, and in a series of separate accords with other and differing accredited investors, Theater Xtreme has reached agreements to remove those provisions relating to full ratchet protection from the warrants held by the investors.
The debenture amendments extend the due dates of the payments of the principal due and payable on behalf of debentures that were due on November 30, 2007 to March 17, 2008. In consideration for the amendment, the company issued an aggregate of 150,000 warrants to the debenture investors to purchase shares of the company's common stock at an exercise price of $1.00 per share.
The warrant amendments modify the provisions of the warrants removing full ratchet protection from the warrants.
"We appreciate the cooperation from our investment partners in the effort to amend our past debentures and warrants," said Scott Oglum, CEO of Theater Xtreme. "As we remain focused on improving our current financial state and capital structure, we intend to pursue optimal opportunities to help fuel the company's growth and increase its footprint nationwide as planned."
The company filed a Form 8-K with the SEC on January 7, 2008, disclosing full details of the amended debentures.
To be added to Theatre Xtreme's investor contact list, please contact Justin Schakelman at jschakelman@theaterxtreme.com.
ABOUT THEATER XTREME ENTERTAINMENT GROUP, INC.
Theater Xtreme Entertainment Group, Inc (OTCBB:TXEG) is a specialty retailer of real movie theaters for the home. The Company's 80" to 120" front projection systems deliver an authentic movie theater experience, as an increasingly popular alternative to flat panel televisions. Its cinema packages, featuring brand names and factory direct products, are simple to use and cost significantly less than traditional A/V dealer offerings. It operates 3 company owned stores and 11 franchises in 12 states.
SAFE HARBOR STATEMENT
Some of the information presented in this letter constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent the Company's judgment regarding future events, and are based on currently available information. Although the Company believes it has a reasonable basis for these forward-looking statements, the Company cannot guarantee their accuracy and actual results may differ materially from those the Company anticipated due to a number of known and unknown uncertainties, of which the Company is not aware. Factors which could cause actual results to differ from expectations include, among others, the ability of the Company to sell franchises, success of the franchise stores, the ability to find suitable locations for new corporate and franchise stores, delay or loss of key products from vendors, the ability to maintain margin and sales growth rate, disruption of product delivery from overseas suppliers, changes in regard to significant suppliers, increased competition from companies with more expertise, experience, or financial resources, technological changes in the home theater market which may render the Company's offerings obsolete, less competitive, or too expensive, material reduction in the demand for home theaters, and lack of sufficient capital to allow the Company to achieve its corporate store opening goal. For additional information concerning these and other important factors that may cause the Company's actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the Company with the Securities and Exchange Commission available at www.sec.gov.