Home > News > Care Concepts Secures Funding for Penthouse Acquisition • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Care Concepts Secures Funding for Penthouse Acquisition

Care Concepts Secures Funding for Penthouse Acquisition
Get XBIZ News
Oct 1, 2004 12:31 PM PDT    Text size: 
DEERFIELD BEACH, Fla. — Care Concepts I Inc. has successfully obtained the funding necessary to purchase almost half of the stock in Penthouse-publisher General Media, according to a release issued thiFriday.

The announcement moves the now-bankrupt publisher one step closer to being reacquired by Penthouse International Inc. in what is shaping up to be a complicated stock-swapping strategy.

With the new funding, secured by privately placing debt and equity securities, Care Concepts is set to purchase 48.3 percent of the stock in General Media from Penthouse International when it emerges from bankruptcy next week.

As part of a previous deal, Care Concepts has also agreed to issue an aggregate of 49.9 percent of its stock to Penthouse International in exchange for acquiring the beleaguered payment processor iBill, currently a subsidiary of General Media.

Once the iBill deal goes through, which Care Concepts insists will happen on or before Jan. 21, 2005, Penthouse International will effectively be a major shareholder of a company that is, in turn, a major shareholder of the two former Penthouse subsidiaries.

“To retain 100 percent equity ownership in General Media […] would have required approximately $70 million in cash that would have been highly dilutive to Penthouse International shareholders,” said Claude Bertin, executive vice president of Penthouse International.

“Penthouse International has avoided this direct dilution by becoming a major shareholder of Care Concepts,” Bertin continued. “Thereby benefiting from a continued investment in the future of Penthouse Magazine without issuing additional Penthouse International stock.”

The announcement came a day after iBill, currently suffering from a dispute with its former payment processor First Data, posted a warning on its Commerce Management Interface that said its ability to pay clients is still being hindered.

Care Concepts acquisition of iBill was delayed last week after the American Stock Exchange threatened to delist the company’s stock for a variety of public issue reasons, including material omissions in filings and a failure to take a shareholder vote in relation to the iBill transaction.

Stock in Care Concepts fell more than 80 percent this week, beginning at $5.90 as the markets opened on Monday morning and falling to $1.10 by midday Friday.

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 !

LEGAL PERSPECTIVES

Data Privacy Is Tightening Up in the E.U.

Have you begun preparing for GDPR? If you are like most, you haven’t even heard of GDPR, but also if you are like most, it is going to affect your business, starting May 25, 2018. The GDPR, or General... More »

Preventing Legal Problems Before They Start

Dentists typically recommend that a person’s teeth be cleaned every six months and that oral X-rays be taken at least once every year. Internists recommend that a person receive a physical examination... More »

Could Adult Content Be Banned?

Earlier this month, I met with the Free Speech Coalition’s board of directors for our annual review. Despite the headwinds our industry faces, politically and economically, we are, as an organization,... More »
XBIZ NEWSLETTERS
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.






POPULAR PRODUCTS & SERVICES
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.

UPCOMING EVENTS

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida

XShow 18+ 2017

Jun 01 - Jun 03
Moscow, Russia

Cam Summit

Jun 02 - Jun 04
Lloret de Mar, Spain
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!