LOS ANGELES, Nov. 14, 2011 (GLOBE NEWSWIRE) -- Convenience TV Inc. (OTC.BB:CRPZ) is pleased to announce the signing of a Letter of Intent with HFT Management Inc. This letter confirms the intent of C-Store Network Inc., a wholly owned subsidiary of Convenience TV Inc., to purchase the static advertising business known as the Go Media division from HFT Management Inc., for a total consideration of $2,000,000 to be paid in cash. The terms and conditions are outlined in an Asset Purchase Agreement to be completed, on approval of financing, on or before December 31, 2011.
In conjunction with the closing of the Asset Purchase Agreement, the parties will sign an agreement contracting HFT to manage the static advertising business which will continue to operate as Go Media.
Convenience TV Inc. (CTVI) President Norman Knowles and HFT President Craig Heard agree that this is an excellent fit for both parties. "For our part", said Mr. Knowles, "CTVI has the capability and expertise to develop and support the project. Our network not only connects advertised products directly to the customer through our system of convenience store locations, but can also present valuable background content to enhance the knowledge of the customer." He went on to add, "in addition, having HFT's many years of experience joining our team is a tremendous bonus". "And for us", said Mr. Heard, "We have thousands of locations under contract and this opportunity melds a successful static advertising business with an expanding digital signage system for the benefit of both."
About Go Media.
HFT operates under the name Gateway Outdoor Advertising and focuses on Out-of-Home advertising in three main profit centers: Their primary business is Transit Advertising, Billboards and GOMedia (C-Store Advertising) throughout the US. Over the past 10 years, Gateway has continued to grow its GoMedia division as advertisers learned more about the effectiveness of target advertising that c-store advertising delivered. The GO Media C-store Advertising Network is a program that promotes the use of premium display advertising posters at the entrances of independent convenience stores nationwide. Over the past 10 years, Gateway has contracted with over 50,000 c-stores for advertising on their exterior walls, windows and interior of the stores. Gateway Outdoor Advertising was founded in 1937 when its first billboards were erected in Pittsburgh. In 1990, New Jersey businessman Craig Heard acquired Gateway Outdoor. HFT has 13 sales offices and C-Store operations throughout the country to serve its clients in the United States and Canada. The company has been honored for its commitment to public service advertising campaigns that are posted on its products across the country.
About Convenience TV Inc.
Convenience TV is focused on the Convenience Store Industry and provides their clients with an "in-location" TV network. The Network is designed to deliver both entertaining content and targeted advertising on a demographic basis to each retail location. In addition, the Network delivers promotional advertising tied to products within the retail location. The programming can be up-dated quickly and is tailored to meet the specific clients' need for increased sales, customer enjoyment and brand reinforcement.
Safe Harbor Statement
Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to Convenience TV or its management, and specifically the ability to close on the acquisition of the Go Media division as well as the performance of the Go Media division after acquisition, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of Convenience TV's products, the competitive environment within the industry, the ability of Convenience TV to continue to expand its operations, the level of costs incurred in connection with Convenience TV's expansion efforts, economic conditions in the industry and the financial strength of Convenience TV's customers and suppliers. Convenience TV does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.