Adult Entertainment Capital Bails Out of Adult Biz

TUSTIN, Calif. — Fleeing investors caused Adult Entertainment Capital’s board to abandon the adult business and go back to selling portable propane grills, snowboards and comic magazines.

Spokeswoman Sherry Ziegelmeyer told XBIZ that two large hedge funds recently bailed out and that six board members on Friday voted to change the public company’s name back to Zealous Trading Group, which will now only own the Freedom Grill, Haynes Bros. Snowboards and Boom-Studios comic book brands.

“You say ‘adult entertainment’ to investors and they usually freak out,” Ziegelmeyer said. “The existing investors were not happy that so much emphasis was placed on adult investments."

As a result, Tustin, Calif.-based Adult Entertainment Capital will no longer be working with the adult entertainment industry.

“The company will now do a 180 and produce family-friendly entertainment,” Ziegelmeyer said.

Shares of Stilletto magazine will revert back to its owner, Gary Gottlieb, and Rock Candy Entertainment will later change hands to adult distributor Brookland Bros., she said.

Rock Candy provides streaming tube and cam sites, SexMonsterCams and MonsterTubers, which offers free and paid video streaming sites such as Monster Milk Juggs, Muff On Muff, Let's Make Fucky and I’d Fuck That.

Stiletto magazine is distributed free at entertainment venues, adult and mainstream retailers, lifestyle events and newsracks in California and Nevada. The circulation is reported at 60,000.

The company also cancelled a deal with ComedyNet, which reaches 19 million homes through cable operators, as well as broadband portals that include Sling Media, Hulu and ActiveVideo. Through an affiliation with QuickPlay, ComedyNet is available via subscription on AT&T, Verizon and Sprint cellphones. ComedyNet's uncut and uncensored events are carried by Events on Demand.

Adult Entertainment Capital launched in September as “the first publicly traded and licensed investment capital option for the adult industry,” as described by CEO Milton “Todd” Ault III.

At the time Ault said the company would acquire and invest in adult businesses, similar to a private equity firm or holding company, without requiring its adult partners to disclose their financial reports.

Ault started his financial career with investment firm Dean Witter Reynolds before moving to Prudential Securities. From 1998 to 2005, he worked with Strome Susskind, a $1.2 billion hedge fund. In 2007, Ault founded Zealous Holdings Inc.

Now the company will go back to the Zealous brand.

Ault, who will retain the position of CEO of Zealous Trading Group, said that slow economic times also had a lot to do with the switched course.

"While adult has great benefits, the abrupt change in the market has made it clear that a bold move in that direction is too far ahead of its time," he said in a statement. "The majority of our investors want us to take control of the situation and do what we do best. There has been a lot of support from within the company to make this change."

In the months ahead, the over-the-counter company plans on changing its stock symbol to reflect the decision, Ault said.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Elegant Angel Drops Final Installment of 'Lilly Loves Girls'

Elegant Angel has released the final installment of 2025 XMAs Girl/Girl Performer of the Year Lilly Bell's showcase “Lilly Loves Girls,” titled “Lilly Loves Vanna.”

Adult Time Drops Latest Installment of Jim Powers' 'MILF Overload'

Adult Time has released the latest installment of director Jim Powers' series "MILF Overload."

XBIZ Expo Debuts New '3D' Hybrid Show Format, Set for Jan. 8-12

XBIZ Expo, the premier business-to-business event exclusively for product manufacturers, retail buyers and the broader pleasure community, will return this January with a new hybrid format designed to give qualifying participants more ways to conduct business.

Ivy Lebelle Stars in Latest From Ricky's Room

Ricky's Room contract star Ivy Lebelle stars in the studio's latest release, titled "Latex And Lust."

CamModelDirectory Launches Platform Upgrade

CamModelDirectory has launched its CMD 3.0 platform upgrade.

Tifa Quinn Makes Her Brazzers Debut

Tifa Quinn has made her Brazzers debut alongside multi-XMAs winner Mick Blue in the studio's latest release, titled "Boxed and Bound."

Doja Cat Gives Nod to Motorbunny

Doja Cat has given a nod to Motorbunny in a social media post.

Angie Faith Performs Her 1st Anal in 2nd Installment of Blacked Feature 'The Blueprint'

Vixen Media Group exclusive Angie Faith has performed her first anal scene alongside Jason Luv in the second installment of studio imprint Blacked's new feature, "The Blueprint."

AEBN Publishes Popular Searches by Country for June, July

AEBN has released the list of popular searches from its straight and gay theaters by country in June and July.

Full Circle Debuts 'My Buddy' Anal Vibe Collection

Full Circle has introduced its new My Buddy collection of anal vibrators.

Show More