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NEW YORK, March 12, 2019 (GLOBE NEWSWIRE) -- Exxe Group, Inc (AXXA), a diversified company focused on synergistic acquisitions in real estate, fintech, Artificial Intelligence, media and financial services, is pleased to announce the implementation of the letter of intent to acquire control of Festivals and Live Events Holding company (“Film Festivals”,“FFH”) with the main wholly owned subsidiary China Mainland Film Festival Company, the marketer and operator of one of mainland China’s largest and most important government-approved film festivals, the European Union Film Festival in China. This acquisition is a part of Exxe Group’s expansion strategy and enables operations in Hong Kong & mainland China under the necessary banner of official cooperation between the European Union and the Chinese government.
Transaction Details FFH currently valued at $5,000,000 USD. Under an aggressive business plan that aims to expand into new territories in Mainland China, Asia and internationally, this highly scalable asset has the potential to achieve a projected growth of 7-10 multiples over 3-5 years. The acquisition has a 3 year structured payout schedule conditional upon meeting specific milestones that Exxe has contractually agreed to with Film Festivals company. Adding the Film Festivals asset to Exxe’s portfolio of holdings adds a new dimension to Exxe’s market reach into live events and content distribution markets. It also opens doors to work with celebrities and the High Net Worth community in Asia. The Exxe/FFH deal closing is expected upon completion of due diligence within 10 days.
Value Added Film Festivals brings significant value to Exxe’s portfolio by adding new sector specific events within an Asia market hub, access to Asia’s high net worth market sector, recognition of Exxe Group on an official government level and the ability to build relations in Asia and Europe in the arts that historically have a potential of converting into infrastructure projects coupled with potential preferential treatment and government concessions. Exxe is already involved in negotiations in the number of international projects that include government relations which in turn gives the Exxe/Film Festivals partnership an official status and recognition of Exxe international work.
The Transaction Benefit to The Exxe Group
Community: The Film Festival market includes a community of 32,000 physical event attendees annually that is projected to expand to 100,000 attendees through partnership relationships with other festivals. Membership to the festival may be easily monetized by offering Exxe’s business services that include financial, advertising, sales and other value added services and products. In addition, a media outreach of 16 million journal readers on mainstream entertainment networks through dedicated film festival media partners. Chinese government wire services for the events reaches over 100 million readers.
Increased Assets and Revenues: Events are currently generating substantial revenues from ticket sales, organization of events, digital asset monetization, and advertising/sponsorship activity. Once the acquisition is in place Exxe plans to expand and implement methods to better monetize an existing catalog of digital assets by offering them into new territories, increase ongoing revenues from events, and increase official contracts with our ability to expand the product offering. A substantial exiting catalog of content is available for distribution licenses, the acquisition of carefully selected new content and rights should increase distributions and revenues.
Exxe’s Real Estate Sector: The deal includes a network of real estate contracts and assets that comprise 16 Festival venues, commercial cinemas, including an 1800 seat auditorium and branded events that will fit well within future venues Exxe plans to build that include hotels. Exxe plans to expand its marketing reach by offering investment opportunities in future real estate projects and events to the High Net Worth base of the event attendees.
Exxe’s Tech division: Expanded utilization of our Artificial Intelligence software: This acquisition is complementary to the recent acquisition of VIP digital platform completed by Exxe Group. Membership to VIP‘s services and software will be offered to HNW individuals of China, who by joining will have access to exclusive VIP services while enjoying cinema screenings of the latest, most famous, award-winning EU films brought exclusively by Film Festival under government contract.
Exxe’s Financial Services: The Festival expands access to a progressive, educated and rapidly developing community of High Net Worth (HNW) individuals in Asia –with an important impact on the local economy, providing a variety of future monetization opportunities.
Exxe’s Entertainment/Media: This acquisition provides a significant impact in the media sector achieved through expansion into new business segments such as film, live performances, interactive stories, festivals, and venues providing additional diversification for revenue and asset growth.
Unique Competitive Advantage To The Exxe Group: This deal brings Chinese government authorization which provides a level of safety and guarantees denied to most foreign businesses.
Dr. Nazmiev PHD, CEO, noted, “This acquisition is an important strategic step to establish and maintain a presence in the vast Asian marketplace. We are seeking to establish EXXE as a local Chinese partner to the international business community that seek to enter and expand in Chinese as well as, other Asian markets. Our international network is growing, so do our diversified services revenues which will ultimately result in financial benefits to both our customers and investors.”
About Exxe Group: Exxe Group is a diversified corporation focusing on acquisitions in the following sectors: real estate, technology, media, and financial services. Exxe Group is an acquisition-driven company. The company strategy is to acquire controlling equity interests in undervalued companies and then take an active role in improving their performance - accelerating their growth by providing both access to capital and management expertise. For additional information go to www.exxegroup.com.
CONTACT: Exxe Group IR email@example.com
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