Home > News > Care Concepts Purchases Half of Penthouse Publisher • Bookmark   • Newsletters   • Register Search Options


Care Concepts Purchases Half of Penthouse Publisher

Care Concepts Purchases Half of Penthouse Publisher
Get XBIZ News
Sep 28, 2004 2:57 PM PDT    Text size: 
POMPANO BEACH, Fla. — Internet auction firm Care Concepts I Inc., the company who recently backed out of acquiring payment processor iBill, announced today that it has agreed to purchase a little under half the stock in Penthouse publisher General Media.

According to a release issued earlier today, Care Concepts has entered into an agreement with GMI Investment Partners and PET Capital Partners LLC to purchase 48.3% of the non-voting common stock in General Media.

The purchase would clear all of now-bankrupt General Media’s debt.

As part of the deal, General Media will be renamed Penthouse Media Group Inc., and Florida financier Marc H. Bell, leader of the investors in PET Capital Partners LLC, will assume day-to-day operations of Penthouse Magazine.

Last month, Bell won a game of financial tug-of-war with Mexican millionaire Luis Enrique Fernando Molina over the magazine after Molina failed to come up with $60 million to purchase General Media’s debt and a New York bankruptcy judge approved Bell’s reorganization plan.

“Marc Bell Capital Partners is a well-known and respected investment firm,” said Gary Spaniak Jr., president of Care Concepts. “The firm partners have substantial experience in publishing, the Internet and with the capital markets. We believe that Mr. Bell will generate substantial value in connection with Care Concepts investment in reorganized General Media.”

Today’s announcement heralded a 67 percent fall in Care Concepts’ stock since the market opened, dropping from $4.21 to $1.17 at deadline.

According to the company’s SEC filings, Care Concepts’ book value per share, the company’s total assets divided by the amount of stock, is roughly $.47.

The filings also state that the company has had a net loss every year since 2002.

Care Concepts suspended its acquisition of iBill from Penthouse International Inc. late last week after the American Stock Exchange halted trading on its stock pending a hearing regarding the several stock listing eligibility issues stemming from its interaction with Penthouse.

Care Concepts had originally planned to purchase iBill for roughly $55 million from Penthouse in an all-stock transaction.

Yesterday, Care Concepts announced it had signed a letter of intent to purchase Best Candy and Tobacco for $12 million, payable in 2 million shares of Care Concepts stock. The acquisition is supposed to close within 30 days.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


Why a Traffic Network Killed a Popular Offering

Change begets change. Nothing propagates so fast. If a man habituated to a narrow circle of cares and pleasures, out of which he seldom travels, step beyond it, though for never so brief a space, his departure... More »

Luring Cam Users With the Right Ad Format

The live cam marketplace is highly competitive filled with big-, medium- and small-sized players. So how do you stand out from the crowd to attract new users or persuade users to come back and spend their... More »

Are Your Payment Forms Losing You Sales?

Whatever product online merchants are selling, their ultimate goal is conversions — and one cannot overstate the importance of payment forms, which can make or break a transaction. The difference... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.



Jun 23 - Jun 25
Chicago, IL.

Latin America Adult Business Expo

Jul 10 - Jul 12
Cartagena, Colombia

ANME Founders Show

Jul 16 - Jul 18
Los Angeles Marriott Burbank Airport


Aug 03 - Aug 06
Montreal, Quebec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!