Public Media Works, Inc. announced yesterday that through its wholly-owned subsidiary, EntertainmentXpress, Inc., it has agreed to terms with Modular Conversions, LLC to place up to 7,000 DVD movie and game kiosks in new convenience stores as major oil company-sponsored gas station conversions are completed over the next three years throughout the United States. Modular Conversions, an industry-leading construction management services firm that works with major oil companies, created the turnkey concept for the “C-store” conversions. The interior conversions include the EntertainmentXpress DVD kiosk as part of the proposed package.
The initial phase of the project includes a commitment of full funding for the installation of up to 1,500 kiosks to be placed in prime, high volume West Coast locations. These programs provide a pre-approval for financing for filling station operators who sign on. Financing for the conversions, over and above what may be subsidized by the oil companies, has been arranged by Modular Conversions through private lenders and a mutual fund, according to the Modular Conversions COO, Jack Neal.
Mr. Neal stated, “We have launched a multi-billion dollar project to convert bays to convenience stores for owners of major oil company brand filling stations across the US who subscribe to the program. It is a very exciting project that will bring huge brand value for oil companies and a significant increased revenue opportunity for the independent station operators. And as part of our overall funding arrangements for this venture, we are planning to allocate up to $154 million to fully finance as many as 7,000 kiosks placed and operated by EntertainmentXpress.”
Bill Zabit, President of Public Media Works, commented, “There is no question that executing on this opportunity puts us on the map as a significant new player in the highly profitable and fast-growing entertainment kiosk industry.” He continued, “And it is most gratifying that we were able to be creative enough to beat the odds of a tough economy with a partnership that includes financing as part of the package. To me it’s a great story of how businesses can work together to create alternatives to work around the scarcity of traditional financing.”
This announcement comes on the heels of a press release at the end of July in which Public Media Works released that it had entered into a five-year collaboration agreement with 3D Mediacast, Inc. (3DMC), a Florida corporation, for their 3D LCD advertising screens to be built into EntertainmentXpress DVD kiosks at no cost to the company. This agreement provides for the two companies to share equally the advertising revenue received from the 3D LCD screens placed in EntertainmentXpress retail customer locations. 3DMC will provide the 3D screens exclusively to EntertainmentXpress as it relates to kiosks. As with standard contract terms, advertising revenues will also be shared with the retail partner as part of the package that should represent the most profitable square footage in their stores.
In addition, 3DMC will pay EntertainmentXpress 25% of its overall advertising revenues for the full term of the five-year agreement with the first $3 million of those revenues to be used to purchase shares of PMW Common Stock as described under the terms of the agreement. Also, according to the agreement, the 25% revenue sharing arrangement would continue throughout the five-year term, up to and beyond the $3 million for the stock purchase.
Shares on PUBM have risen from $.50 to $1.80 in the last 6 weeks. More information on Public Media Works, its products and the investment opportunity it presents are available on the Company’s website at www.publicmediaworks.com.