Salon City Files 8-K Reporting Termination of Placement Agent Agreement With Capital Growth Resources
April 24 2009 - 8:09PM
Marketwired
Ewire -- Salon City, Inc. (OTCBB: SALN) announces that it has filed
a Form 8-K today with the Securities and Exchange Commission
noticing the unexplained termination of the Company's exclusive
Placement Agent Agreement with Capital Growth Resources, Inc.
("CGR") of El Cajon, California.
Salon City entered into a mutual understanding with Capital
Growth Resources on July 2, 2008 that was intended to lead to the
signing of a formal placement agent agreement with the company in
July 2008. It was anticipated at the time that the funding process
would commence shortly thereafter. Due to unanticipated delays that
were beyond the company's control, the placement agent agreement
was not signed until February 2, 2009.
Terms of the exclusive placement agreement consisted of
financing a $500,000 bridge loan offered to accredited investors
that was to provide the Company with operating capital. The term of
this best efforts financing was 180 days with an option to lengthen
the term an additional 90 days. It was expected that a second stage
of financing would occur with CGR that was contingent upon (1) the
successful completion of the minimum raise of $75,000 in stage one
and (2) the execution of a subsequent agreement between Salon City
and CGR (and affiliated entities) that was expected to raise up to
$2 million and would have featured secured financing from
accredited institutional investors by and through purchased
memberships in the Salon City LIBAC Fund, LLC. There was no
guarantee that the second stage financing would have occurred
without the satisfaction of those items noted above.
Steven G. Casciola, SCI's President and CEO, stated, "The
Company is disappointed to say the least. It's now time to put this
past nine months behind us and move on. We look forward to coming
up with realistic and achievable funding solutions for moving our
company ahead."
To learn more about Salon City, Inc.'s plans, investors are
invited to listen in on the company's 15 minute conference call,
Thursday, April 30th, 2009 at 4 p.m. EDT. Investors should call
219-509-8222 (long-distance charge applies) and use code
010405.
ABOUT SALON CITY, INC.
Salon City, Inc. is an emerging media company, lifestyle brand
and independent marketing network for products, distribution and
services. It publishes its flagship consumer publication, Salon
City magazine, Beautymaker trade magazine and produces the
award-winning web show, Hollywood CeleBeauty, online media,
licensed events and awards shows.
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.
CONTACT: Media Relations 888-522-3263 Email Contact
www.saloncity.com
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