LAS VEGAS, May 13, 2011 (GLOBE NEWSWIRE) -- Prime Star Group, Inc. (OTCBB:PSGI) announces that its President Edward Braniff has issued a letter to shareholders to provide more clarity over the Company's business operations and plans.
I have been with Prime Star Group Inc. for 75 days and I wanted to take a few minutes to discuss the Company's operations and development plans. Several of you have reached out to me since I accepted the position as President of Prime Star Group and asked me about my background so I would like to start there. My career has focused on building, restructuring or turning around operations and organizations. I was notably employed by AT&T for 27 years that included CFO of AT&T's International and Operational Divisions.
I have spent a great deal of time with Roger Mohlman and other key members of the organization reviewing Prime Star Group's litigation record, regulatory/ financial position and the business opportunities, technology, brand/product mix. I'm hopeful that this letter will answer some of your questions and provide a good overview of the status of our activities.
Prime Star Group has been involved in a series of complex and extended litigations over the last five years and we are happy to report that we were successful in reaching positive decisions in all of them. I will say that they have consumed a great deal of management's time, consumed a large percentage of our available funds and delayed the deployment of the businesses. While the decisions have been rendered in Prime Star Group's Inc favor, we are planning for an additional effort to collect any judgments awarded. Most importantly, management is now focused on deploying its businesses.
Prime Star Group Inc. intends to be a fully compliant Bulletin Board company in 2011. In order to help ensure that we have no issues, I have asked for changes in the bookkeeping, accounting and auditing support for Prime Star Group, Inc. Our new accounting partner is reviewing and booking every transaction for the last two years. We also plan to file our 2011 first quarter and be compliant on with all our filings by the time we file our 2011 second quarter filing.
The Prime Star Group
Prime Star Group, Inc. (PSGI) is a holding company that focuses on three core areas of business:
- Packaging Equipment and Film
Prime Star Group's subsidiary Intel-Pac, Inc. builds, rents, installs and maintains our proprietary machines and sells our bio-degradable film, ECCO-PAX™ for all applications. Our process provides customers with a proprietary, safe, efficient and environmentally friendly packaging system for storing solids, liquids, ice and beverages of all types.
- High-Quality Beverages and Foods
Prime Star Group's subsidiary companies have the capability to produce, market and distribute high-quality products: exclusive wines, healthy teas, adult mixed beverages, healthy flavored waters, and gourmet, all-natural seafood and vegan products. We also can co-brand and co-pack existing high-end beverages and private label liquors for large hospitality and entertainment brands. All of our non-alcoholic and alcoholic beverage producers will use ECCO-PAX™ packaging.
Once products are developed and packaged, they need to get to market. We have distributors willing and ready to distribute our products into the beverage, food retail, entertainment, hospitality, medical and disaster relief markets.
Prime Star Group has been building plans for the operational launch of specific market business and products in 2011. We have formulated a structure that will allow us to partner with investors interested in some of our target markets and we have found some investors/partners interested in purchasing some ownership of these subsidiaries. The November 15, 2010 announcement of a deal with Isaac Capital Group for a credit line for the launch of Gourmet Fusion Seafood is the first example and that partnership has allowed Prime Star group to start production, distribution and billing in the 2nd Quarter of 2011.
In addition to Gourmet Fusion Foods, Inc. and Intel-Pac, Inc.(IPAC™),we plan to formalize the structure and the launch of four subsidiaries in the next 120 days. They are:
- Netherlands Tea Company
- Delizia Limited Cigars
- Vintners Global Fine Wine & Spirits
- SIPP™, Inc.
- Interactive Leisure Corp
Each subsidiary is expected to have a debt and equity structure that will enable Prime Star Group and our partners to finance the subsidiary's operations at launch. If a subsidiary is considered to be non-core we may facilitate a spinoff of the subsidiary.
Gourmet Fusion Foods, Inc. is a manufacturer of healthy, gourmet seafood and vegan products designed to give consumers the type of foods they desire, yet at a price point that is affordable. With the increasing consumer demand for healthier lifestyle food and gourmet flavors, Gourmet Fusion Foods produces seafood items such as Crab, Lobster, Salmon and Shrimp Fusion Sliders and Mahi-Mahi, Pacific Salmon, and Ahi Tuna Fish Burgers, which are high in healthy Omega-3 fatty acids and taste great Gourmet Fusion Foods is also preparing to produce a line of Vegan sliders and Koscher sliders. All products are gluten free, dairy free, all natural and contain no preservatives. With this business we have found a partner that will fund the growth in sales as we move distribution nationwide. We have received our national vendor numbers from US Foods and Sysco. Prime Star Group will retain 60% of the ownership of Gourmet Fusion Foods, Inc.
Delizia Limited Cigars is the manufacturer and importer of premier cigars distributed under the Delizia and private label. We have the ability to manufacture more than 250,000 cigars a month in Costa Rica and our cigars have received a premium rating.
Global Fine Wine & Spirits, Inc. ("GFWS") is a master distributor that wholesales and distributes premium alcoholic and non-alcoholic beverages in bottles, cans and ECCO-PAX™ pouches. GFWS will also co-bottle, co-pack and partner with other high-end retail, hospitality and entertainment businesses to create unique, branded beverages. GFWS will independently market its wines under the Vintner's Private Reserve luxury brand.
The Netherland Tea Company, Inc. ("TNT") produces ready to drink, healthy hemp tea. TNT manufactures and distributes Hemp-C iced tea. Currently TNT is the only manufacturer of hemp-tea in the US Market. TNT has developed innovative products and a brand to take advantage of evolving consumer trends thereby increasing promotional effectiveness for its product lines.
SIPP™, Inc. co-packs, markets and distributes high-quality alcoholic beverages in the unique SmartPaxTM flexible pouch packaging. By co-packing and marketing new and existing brands in the efficient, flexible and environmentally friendly ECCO-PAXTM packaging, SIPP™ opens markets and increases brands' profitability. SIPP partners with established beverage brands, retailers, entertainment and hospitality companies.
Interactive Leisure Corp. is a Software and Web Development company specializing in Travel Technology solutions. Interactive Leisure (the "Company") currently provides E-Commerce solutions to on line businesses, travel suppliers, and travel resellers. The Company has excelled in the development of user friendly, content rich, and highly optimized web sites that integrate with fully scalable back office software support systems.
Intel-Pac, Inc. (IPAC™),is a core business for Prime Star Group and while we have plans for funding our diversified subsidiaries in core areas we do not plan to relinquish managerial control or a majority ownership. We will work with Co-Packing partners or minority investment partners to help fund the operations of our core subsidiaries. The structure for this nationwide role out and a list of our potential partners is expected to be worked out over the next 120 days.
The Company expects to accelerate deployment of our packaging machine and the pouch beverage sales in 2011. We have had an increased interest in our pouch water products with the recent national and international disasters but we need to have capability to deliver product and that is our primary mission for 2011. We plan to have our own production and Co-Packing partner production to deliver pouch water for disaster relief by the end of the 3rd quarter 2011.
I am excited about 2011 and the opportunity that exists for Prime Star Group Inc. as we unlock the value that exists in each of our subsidiaries. Please note that my compensation is primarily tied to operational revenue and success from unlocking that value in our businesses. We plan to report on the status of our efforts as part of our filings and releases.
Prime Star Group Inc.
Forward Looking Statements - Safe Harbor
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Prime Star Group, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Prime Star Group, Inc.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Prime Star Group, Inc.'s filings with the Securities and Exchange Commission.
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