FOR IMMEDIATE RELEASE:
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Monday October 27, 2003 9:45 AM EST
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LIVESTAR ENTERTAINMENT GROUP INC. ANNOUNCES IT HAS SUCCESSFULLY CLOSED THE
ACQUISITION OF THE SEQUEL NIGHTCLUB & LOUNGE AND ALSO ANNOUNCES THE
DISCONTINUATION OF INVESTMENT GROUP TAKEOVER DISCUSSIONS
Vancouver, BC - October 27, 2003 ---LIVESTAR Entertainment Group Inc.
("LIVESTAR" or the "Company") (OTC BB: LSTA) today announced that it has
successfully closed the acquisition of the Sequel Nightclub and Lounge ("the
Sequel"). The Sequel is now the first lounge in LIVESTAR's network of operating
liquor licensed establishments.
The Sequel, based in Toronto, is an upscale venue viewed as a top hotspot in the
Toronto nightclub scene. It has quickly become the focus of attention by music
and entertainment observers and has attracted numerous articles from the
entertainment press due to its fashionable d cor, hip ambience and sold out
weekends.
According to the Founder, President and CEO of LIVESTAR, Mr. Ray Hawkins "Our
commitment and diligent effort towards the acquisition of our first revenue
producing entertainment facility has paid off, with the Sequel now being an
official part of LIVESTAR. We feel this is an important and exciting milestone
for LIVESTAR and its patient shareholders. We will now begin to build upon the
success the Sequel has had, continue the development of the Sequel system with
our team of employees and consultants to develop our planned chain of Sequel
lounges, and work towards completing other acquisitions and development
projects. We intend on making bold moves to establish our live entertainment
business and we feel completing the Sequel transaction successfully is an
indication of things to come".
The acquisition will be accounted for as a 100% share purchase of the
corporation that owns the Sequel business and assets. Terms of the acquisition
are based on a cash and stock arrangement. LIVESTAR has purchased the Sequel
with favourable terms that reduce our risk of capital, given the inherent risks
of the business, while providing for an ROI that is realistically attainable.
The Company expects to file an amended Form 8-K containing audited financial
statements of the Corporation holding the Sequel assets with the U.S. Securities
and Exchange Commission.
According to Mr. Terry Lall, founder of The Sequel, "Since the execution of the
letter of intent with LIVESTAR in September of 2002, I have worked diligently
with LIVESTAR management to complete this transaction to the benefit of all
parties involved. During that period we have seen the challenges LIVESTAR has
overcome in transitioning to a live entertainment business. Their efforts should
be commended and now that we have closed the Sequel acquisition, I feel this is
just the beginning and with continued commitment, effort and patience, positive
results are very possible for LIVESTAR to
attain over time. Combining the
success the Sequel has achieved to date with the LIVESTAR vision and its
innovative entertainment network concepts, we believe will provide a foundation
for LIVESTAR to quickly become a leader in our projected market areas in the
live entertainment business. I am proud to say that with this closing, the
Sequel will be the first in a network of entertainment establishments, namely
nightclubs and lounges, which LIVESTAR plans to develop. "
The Company also announces today that, upon the conclusion of due diligence, the
TCAL Investment Group ("TCAL") and the Company have mutually agreed to
discontinue discussions regarding the previously announced proposed possible
tender offer of a majority of the outstanding shares of the Company.
Although discussions between the Company and TCAL were productive, both parties
were unable to come to terms on key items for the future plans of the Company.
Despite the discontinuation of takeover discussions, both parties are continuing
talks in regards to joint venturing on entertainment projects, or TCAL providing
or arranging capital for future LIVESTAR ventures.
ABOUT LIVESTAR ENTERTAINMENT GROUP, INC.
The core business of LIVESTAR Entertainment Group, Inc. is the development of
entertainment entities, specifically; Liquor Licensed Entertainment
Establishments (namely nightclubs and lounges) and Live Entertainment (concerts
and special events).
Statements contained herein that are not based on historical fact are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. LIVESTAR Entertainment Group, Inc intends that
such forward-looking statements be subject to the safe harbor created thereby.
Such forward-looking statements are based on current assumptions but involve
known and unknown risks and uncertainties that may cause LIVESTAR Entertainment
Group, Inc.'s actual results, performance or achievements to differ materially
from current expectations. These risks include economic, competitive,
governmental, technological and other factors discussed in LIVESTAR
Entertainment Group, Inc.'s applicable public filings on record with the
Securities and Exchange Commission which can be viewed at its website at
http://www.sec.gov.
For more information please contact:
Investor Relations; investors@livestar.net
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Phone: 604-682-6541 Please visit our website: www.livestar.net