Big Stick Media Corporation
TSX VENTURE : BSM

Big Stick Media Corporation

October 15, 2009 13:42 ET

Big Stick Media Corporation Announces the Closing of Its Las Vegas Handicapping Advisory Call Center

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2009) - Big Stick Media Corporation ("BSM" or the "Company") (TSX VENTURE:BSM) announces today that it has ceased the operations of its wholly-owned subsidiary, National Sports Services (IGC), Inc. ("NSS"). NSS had been operating a call center for the sale of handicapping advisory services.

In the three completed fiscal quarters of 2009, NSS accounted for approximately 39% of BSM's consolidated revenue. While NSS had generated net income of approximately $675,000 for the first three quarters of fiscal 2009, this was due largely to the deferred recognition of revenue in relation to cash receipts received during the fourth quarter of 2008. As well, the company had realized a material foreign exchange translation gain related to the depreciation of the U.S. dollar versus the Canadian dollar. However, NSS had not been able to achieve cash flow positive results for any fiscal year since BSM had acquired the assets that constituted the NSS business in November of 2006.

"In the three years that we have owned and operated the NSS business, we have expended tremendous efforts to right-size the business amidst a challenging economic environment that pressured revenues", stated Christopher Kape, President and CEO. While we succeeded in bringing the business close to cash flow breakeven, we do not perceive that the necessary conditions exist to enable the company to become a profit center within our consolidated group. Accordingly, the decision has been made to systematically wind down the call center business and to focus our handicapping efforts within the online space via our website properties. We can now dedicate enhanced efforts on our product development initiatives within our Don Best information service division and improve the Company's bottom line results in the process".

The Company will continue to explore opportunities to monetize the remaining NSS assets over the coming weeks and to realize on any remaining value. To the extent that we are successful in consummating any such deal, we will disclose the relevant details in a subsequent press release. Furthermore, if no such transaction is available, we will consider retaining the assets to redeploy them in a call center environment if and when improved business conditions present themselves.

Additional information pertaining to BSM is available under the Company's profile at www.sedar.com.

As at the date hereof BSM has 23,992,020 issued and outstanding common shares.

About Big Stick Media Corporation

BSM owns and operates a portfolio of assets that provide fact-based and opinion oriented information relevant to the sports industry. These assets include websites, client-server software and publications. BSM generates revenues in a number of ways, including various direct to consumer services and direct to business sales through a portfolio of websites, the most significant of which are www.JimFeist.com, www.donbest.com, and www.g-picks.com. BSM also operates the Don Best Sports real-time sports information systems for serious sports enthusiasts, handicappers and bettors.

Cautionary Statement

This press release may contain certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Big Stick Media Corporation's expectations are various risks detailed from time to time in the filings made by Big Stick Media Corporation with securities regulations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release.

Contact Information

  • Big Stick Media Corporation
    Christopher S. Kape
    Chief Executive Officer
    (604) 630-6550 ext. 111
    chris@bigstickmedia.com