SOURCE: Smart Kids Group

Smart Kids Group

April 06, 2010 08:00 ET

Smart Kids Group Secures $10 Million Equity Line of Credit From Auctus Private Equity Fund, LLC

SANTA FE, NM--(Marketwire - April 6, 2010) -  Catch the Buzz! Smart Kids Group Inc. (OTCBB: SKGP), a global provider of children's digital education and entertainment, has entered into a Drawdown Equity Finance Agreement with Auctus Private Equity Fund, LLC of Boston.

"We are aware that a $10 million equity line of credit, managed ineffectively, could potentially be very dilutive for our shareholders. However, we also need to protect and ensure the future development of our TV productions and services to our market and Auctus is an excellent financing partner.  Smart Kids Group Inc. is actively pursuing financing options in order to launch TV production and acquire existing opportunities.  Smart Kids will only use the equity line of credit judiciously, in conjunction with other sources of financing, as and when necessary; keeping in mind at all times the value of our shares to our strategic investors. In these challenging financial times, it is prudent for Smart Kids Group to partner with Auctus at this time and plan for strategic success as well as sustained growth of the company," said Andy Ruppanner, President and CEO of Smart Kids Group. He added, "The Company has submitted a Form S-1 which is used by public companies to register securities with the U.S. Securities and Exchange Commission (SEC). It is estimated that SEC approval of the S-1 may take 90 days. In the event that we can secure more traditional financing, the Company will not use this equity line of credit."

Smart Kids Group Inc.
Catch the Buzz! Smart Kids Group develops, distributes and licenses quality children's character based Edutainment products through a variety of media including television, video, retail, direct marketing, and the Internet. For more information about the company, please visit www.skgp.biz or e-mail the company at info@smartkidsgroup.com.

Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21B of the Securities and Exchange Act of 1934, as amended. Readers are cautioned not place undue reliance on these forward-looking statements, which are only predictions and only speak as of the date hereof. Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "plan," "expect," or similar expressions and are subject to numerous known and unknown risks and uncertainties. These risks and uncertainties could cause the Company's actual results to differ materially those indicated in the forward-looking statements.

Investors are encouraged to carefully review regulatory filings prior to investment consideration. Past performance is no guarantee of future success or that there cannot be losses or business interruption. The Company is in a rapid growth sector that may or may not continue to grow in the future and therefore poses risks that may be different than other investments. Management regularly provides news and additional information believed to be true and accurate at the time of dissemination but has no requirement to modify, comment or change in the future should circumstance change or information prove to be inaccurate for any reason. Additionally, the Company makes every effort to comply with all applicable laws.

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