Triangle Multi-Media Limited, Inc. and Q Television Network, Inc. Make Two Major Announcements Monday August 21, 4:05 pm ET
WOODLAND HILLS, CA--(MARKET WIRE)--Aug 21, 2006 -- Triangle Multi-Media Limited, Inc. ("TMM") (Other OTC:QBID.PK - News) 1) Triangle Multi-Media Limited, Inc. and Q Television Network, Inc. CEO, Chairman and majority shareholder Lloyd Fan appoints Anthony (Tony) J. Gouveia as a consultant to develop and execute a business plan that addresses the concerns of shareholders, creditors and employees.
2) Triangle Multi-Media Limited, Inc. and Q Television Network, Inc. announces sale of Triangle Multi-Media Limited, Inc. and plans for Q Television Network, Inc. In May of 2006, Q Television Network, Inc. ("QTN"), a wholly-owned subsidiary of Triangle Multi-Media Limited, Inc. ("TMM") (Other OTC:QBID.PK - News), ceased operations due to the inability to secure additional financing to cover the financial obligations of QTN. Chairman and CEO Lloyd Fan has worked diligently since March 7, 2006, the date of his appointment as Chairman and CEO, to develop and implement a business plan to save the network. "When I took over control of the network, the company was roughly $7 million behind in payments to vendors; numerous lawsuits had been filed against the company and over $600,000 was owed to former employees. The financial challenges that the network faced proved too difficult and I was simply unable to turn around the network. I am deeply disappointed as many talented people devoted themselves to saving it.
"I would like to again thank the cable affiliates, our uplink provider, all the vendors and the staff that supported my takeover. I had hoped to make good on all the debts incurred and owed by the former management team and truly thought that with the new team and proper funding, QTN could have succeeded. My sincere apologies to all the individuals and businesses who have suffered because of their affiliation with QTN.
"Even though we ceased operation as a network, I wanted to find a way to help shareholders, creditors and employees recover some of their investment in QTN. I have never experienced a business failure in my career and I want to do everything possible to help everyone that believed in QTN, and who invested their time, energies and resources as shareholders, creditors and employees. For this reason, I appointed Anthony (Tony) J. Gouveia as a consultant in July 2006 to help me restructure TMM/QTN. Mr. Gouveia's financial expertise, experience, impressive communication skills and understanding of the tools necessary to manage complex transactions will be invaluable. His extensive accounting background, his experience as a dynamic senior financial executive and his unquestionable character and integrity as a CPA for 20 years make him the ideal person to manage this process. Mr.Gouveia has held various positions in public and privately held companies as CFO, Vice President of Finance and Corporate Controller. He spent several years as an auditor for large international accounting firms. Tony has my full support. I will remain involved in all business decisions with Tony's assistance. I want to thank Tony for taking on this difficult task."
Mr.Gouveia responded, "I'm very impressed with Mr. Fan's commitment as CEO and Chairman. He took over at a difficult time when things were totally hopeless. He has committed a significant amount of his time and resources to try to save this network. I admire and respect what he tried to do, and I know there are many others who feel the same way.
"I have been assisting Mr. Fan with his Taiwan-based company, QTN Asia, in which I own an interest. This is a new marketing and distribution company of high end consumer products. This company will provide an innovative sales and distribution channel for consumer products to the United States. We will offer the highest quality products at a significant discount directly to the consumer. This is a complete overhaul of the current business model every retailer, wholesaler and importer is using today. We are currently working on obtaining the necessary financing to launch this company. Mr. Fan is a very creative and innovative businessman who believes strongly in always conducting himself with integrity and that convinced me to work with Mr. Fan on this mission."
Mr. Fan added, "My dream is to consolidate the GLBT community strength and buying power, to use part of the proceeds to support local community events and to communicate an agenda to educate others to spread peace, love and equal rights.
"The unfair treatment to the vendors, shareholders and QTN employees was painful for me to bear, and thanks to the thousands of supporters and community leaders whom have rallied behind me, I'm able to find the strength to move forward and to find the best solution for all of us."
Mr. Gouveia added, "I have had no previous involvement with TMM, QTN or any other company associated with TMM or QTN. At no time was I a shareholder, creditor, employee or consultant prior to July 2006. Furthermore, I have had no personal relationships with anyone associated with TMM, QTN or any other company connected with TMM or QTN, except Lloyd Fan. I was introduced to Mr. Fan in May 2006 as a consultant who might be able to assist him in this process.
"It is very disturbing to hear some of the circumstances surrounding what happened at TMM and QTN prior to Lloyd's appointment as CEO and Chairman. We will consider all possible actions going forward to determine what went wrong, which could include a forensic accounting of all the various transactions that we believe require further investigation."
Triangle Multi-Media Limited, Inc. and Q Television Network, Inc. announces sale of Triangle Multi-Media Limited, Inc. and plans for Q Television Network, Inc.
Mr. Gouveia stated, "We are very pleased to announce the proposed sale of TMM to Cinemax Pictures and Production Company International, Inc. (Canada) ('Cinemax Pictures'), pending completion of due diligence and shareholder approval. Cinemax Pictures is not affiliated with Time Warner Entertainment. The sale of TMM will be an all-stock deal. TMM shareholders will receive 20% of Cinemax Pictures on a 'Pro-Rata' basis.
"Cinemax Pictures is a production company that has three distinct lines of business. First, Cinemax Pictures owns a reality television show that will be shown to 18 television networks. Cinemax Pictures expects to get this syndicated and to start generating revenue. The reality show is called 'Three Patriots and a Wagon.' It is a comedy drama that explores the relationship between a Native Indian and a 'Pale-Face' who has an intricate knowledge of law. Second, Cinemax Pictures owns six movies that are in different stages of production. Cinemax Pictures considers these movies to be blockbusters, not only because of the actors and actresses that have signed on, but because of the scripts that have been reviewed. The movies range from comedies to action-thrillers. Finally, due to Cinemax Pictures relationships and contacts throughout the industry, Cinemax Pictures has the opportunity to provide bridge-financing (or 'gap-funding' as it is referred to in the industry) to movies that go over their production budget. Cinemax Pictures will take a large percentage of the rights to the movies and will receive a return-on-investment once the movie has completed production and is sold to a distributor.
"Cinemax Pictures is committed to its new shareholders and it is interviewing a number of investor relation firms to keep the shareholders abreast of all the new developments. Cinemax Pictures' website is presently under construction, but it is expected to be revamped within the next month.
"Mr. Fan and I are both committed to supporting Cinemax Pictures. After the sale is completed, I will be a Director."
Mr. Gouveia added, "Mr. Fan and I are currently reviewing what will be the disposition of QTN. We will communicate our intentions when this process is finalized. The possible solutions under consideration are to sell QTN or to reacquire assets that may legally belong to QTN in order to pay off creditors and employees. We will consult with our attorneys on the proper method of accomplishing the above.
"We have negotiated a deal with the Obion Group. They are in the process of purchasing a shell company to reverse merge with. This will be a publicly traded holding company. This company will focus on a number of different fast food restaurant chains with products ranging from: Chicago Style Hot Dogs, Fish & Chips, Pizza, BBQ, Hamburgers, Spuds, Gyros, Hot Wings, Oriental, Tex-Mex, Vegetarian, Salads, and Diabetic eateries. The first of these fast food restaurant chains is Chicago Style Hot Dogs (a Nevada Corporation) which is being test marketed in Texas with two operating establishments. Furthermore, the Obion Group owns an interest in a virtual reality technology company and will explore opportunities in the resorts/destination industry. The Obion Group will set aside 25 billion of its authorized shares for the TMM shareholders. There will be a distribution of these shares on a 'Pro-Rata' basis at no cost to the TMM shareholders once the Obion Group is approved for public trading.
"The purpose of the distribution to TMM shareholders is to assist shareholders in recouping some of their losses. There is no requirement to invest in the Obion Group.
"Mr. Fan and I will be Directors and we will have an ownership interest in the Obion Group and all related businesses.
"Mr. Fan and I have formed a recovery team for two reasons: (1) to determine if there are assets that can be reacquired that rightfully belong to QTN, which may include a forensic accounting of all pertinent records associated with these assets; and (2) provide shareholders other opportunities to recover their investment. The cash value of all assets that may be acquired, less administrative costs and fees, will be used to pay-off creditors and employees. We will set up a website that will periodically be updated to provide all concerned with the status on our progress. This website will also be a vehicle for communicating information to us that might be used to assist us in this process."
Mr. Fan stated, "I'm very excited about what Tony has been able to accomplish. Tony did an outstanding job and exceeded my expectations. Everyone involved with these transactions was impressed with his significant skills and experience. He worked 24/7 to make this happen as quickly as possible. I fully support and approve of everything that he was able to accomplish."
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "anticipated," or "may," and similar conditional expressions, are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the company's industry and general economy; competitive factors; ability to attract and retain personnel; and the price of the company's stock. Triangle Multi-Media, Q Television Network, Cinemax Pictures and the Obion Group take no obligation to update or correct forward-looking statements and also take no obligation to update or correct information prepared by third parties that is not paid for by the companies.