Contact Information: CONTACT: Media Relations 888-522-3263 www.saloncity.com
Salon City Files 8-K Reporting Termination of Placement Agent Agreement With Capital Growth Resources
| Source: Salon City, Inc.
BEVERLY HILLS, CA--(Marketwire - April 24, 2009) - Ewire -- Salon City, Inc. (OTCBB : SALN )
announces that it has filed a Form 8-K today with the Securities and
Exchange Commission noticing the unexplained termination of the Company's
exclusive Placement Agent Agreement with Capital Growth Resources, Inc.
("CGR") of El Cajon, California.
Salon City entered into a mutual understanding with Capital Growth
Resources on July 2, 2008 that was intended to lead to the signing of a
formal placement agent agreement with the company in July 2008. It was
anticipated at the time that the funding process would commence shortly
thereafter. Due to unanticipated delays that were beyond the company's
control, the placement agent agreement was not signed until February 2,
2009.
Terms of the exclusive placement agreement consisted of financing a
$500,000 bridge loan offered to accredited investors that was to provide
the Company with operating capital. The term of this best efforts financing
was 180 days with an option to lengthen the term an additional 90 days. It
was expected that a second stage of financing would occur with CGR that was
contingent upon (1) the successful completion of the minimum raise of
$75,000 in stage one and (2) the execution of a subsequent agreement
between Salon City and CGR (and affiliated entities) that was expected to
raise up to $2 million and would have featured secured financing from
accredited institutional investors by and through purchased memberships in
the Salon City LIBAC Fund, LLC. There was no guarantee that the second
stage financing would have occurred without the satisfaction of those items
noted above.
Steven G. Casciola, SCI's President and CEO, stated, "The Company is
disappointed to say the least. It's now time to put this past nine months
behind us and move on. We look forward to coming up with realistic and
achievable funding solutions for moving our company ahead."
To learn more about Salon City, Inc.'s plans, investors are invited to
listen in on the company's 15 minute conference call, Thursday, April 30th,
2009 at 4 p.m. EDT. Investors should call 219-509-8222 (long-distance
charge applies) and use code 010405.
ABOUT SALON CITY, INC.
Salon City, Inc. is an emerging media company, lifestyle brand and
independent marketing network for products, distribution and services. It
publishes its flagship consumer publication, Salon City magazine,
Beautymaker trade magazine and produces the award-winning web show,
Hollywood CeleBeauty, online media, licensed events and awards shows.
Certain information contained in these materials is "forward-looking"
information, such as projections, estimates, pro formas, or statements of
intentions, expectations or plans. All forward-looking information is
subject to known and unknown risks and uncertainties, many of which are
outside of the control of the Company. Consequently, actual results may,
and probably will, differ materially from the results contemplated in such
forward-looking information.