WEST HOLLYWOOD, Calif., Dec. 6, 2006 (PRIME NEWSWIRE) -- Salon City, Inc. (Pink Sheets:SLON) today announced that a termination notice was sent on November 3, 2006 to Fountain Capital Fund, Inc. with respect to Fountain Capital's agreement to provide consulting services and purchase of sponsorship advertising and licensing in SCI's media products and projects. The 90-day term of the agreement has expired, and SCI does not intend to renew the agreement.
Steven Casciola, President and CEO of Salon City, Inc., said, "We have always considered alternative consulting services and financing sources to support our future growth." Some of the alternative financing sources include "a private placement of our securities, a public offering of our securities, a bank loan collateralized with the stock of the founders, or Rule 144 sales followed by loans to the company," according to Casciola. He added that, "We are also considering uplifting our common stock to another exchange."
Casciola's overall assessment is bullish. "The good news is we are one year ahead in our media initiatives, and to build on our progress, we'll be launching our new, and first true, investor relations campaign, while evaluating options that hold promise for meeting our working capital needs. Salon City, Inc. is about to be discovered by millions of viewers, and we're preparing to start out strong in our first full year as a public company."
Salon City is a publicly traded media company and provides content and product distribution services for consumers and the worldwide beauty industry, including beauty salons as well as spas. Resized to accommodate display criteria for newsstands and airport displays, the circulation and reach of Salon City magazine is projected to increase significantly in spring 2007, and will include national and international newsstand distribution for the first time in the six-year history of the publication. In addition to the magazine, television, publishing, online and live event media/entertainment projects are in development stages with progress reports scheduled to be announced in the coming weeks.
For more information on the Company, please visit the Company's website at: www.saloncity.com.
To be added to Salon City's investor e-mail list, please send an e-mail to our Investors Relations Department at info@saloncity.com.
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Certain information contained in these materials is "forward-looking" information, such as projections, estimates, pro formas, or statements of intentions, expectations or plans. All forward-looking information is subject to known and unknown risks and uncertainties, many of which are outside of the control of the Company. Consequently, actual results may, and probably will, differ materially from the results contemplated in such forward-looking information.