(NewsDirect)
All American GoldCorp. (OTC: AAGC) is ecstatic to update the public about the recentacquisition leading to massive growth and advancements of HollywoodStar Cuts.
OnMonday, June 19 th , 2023, Hollywood Star Cuts and AllAmerican Gold Corp. (AAGC), completed the acquisition of afamily-owned chain of Tanning Salons.
Hollywood Star Cuts is a Full-Service FamilyHair and Beauty Salon with Tanning available at most locations.Hollywood Star Cuts is a “Themed” Beauty/Tanning Salon where thecustomer is treated like a “Movie Star”, and they are the “Starof the Show”! Hollywood Star Cuts currently operates multipleCorporate owned locations in the greater Boise area and is developingFranchise locations across The United States.
OnJune 12 th , 2023, Hollywood Star Cuts entered into a LetterOf Intent (LOI) to finalize the purchase of a chain of Family ownedTanning Salons. This LOI granted Hollywood Star Cuts the authority tonegotiate the existing leases and initiate new leases where necessary.Hollywood Star Cuts is delighted to report that lease negotiationsproceeded flawlessly.
On Monday, July 3rd, 2023, Hollywood Star Cuts will formallytake possession of all 14 Tanning Salon Locations. A member of themanagement staff has agreed to remain for six (6) months to allow aneasy transition to Hollywood Star Cuts.
As stated in an earlier Press Release datedMay 11, 2023, the Tanning Salons are located in Florida, Georgia andTennessee. The family-owned Tanning Establishment currently operates14 locations and generates roughly One Million Three Hundred ThousandDollars ($1,300,000) in annual revenues.
The independent auditing firm enlisted by AllAmerican Gold Corp. has validated the stated revenues and hasconfirmed to all parties that the financial situation of the TanningFacilities is strong and can be audited going forward.
Hollywood Star Cutswill be immediately closing one (1) location in Tennessee, one (1)location in Georgia and two (2) locations in Florida. These four (4)locations have not been profitable and due to the lack of ability toconvert them into combo Tanning/Hair-Care Salons their ability togenerate future profits is unlikely. Hollywood Star Cuts hasnegotiated a fair lease buyout and will be utilizing the tanningequipment in future Hollywood Star Cuts locations.
The remaining ten (10)locations will operate without change for 60 days. Hollywood Star Cutswill be monitoring the operations of the Tanning Salons and creating aplan of action to convert the operating Tanning Salons intoTanning/Hair-Care Salons and creating the “Movie Star” experiencethat is launching Hollywood Star Cuts into the industry leader and adifference maker in this multi-billion-dollar industry.
Hollywood Star Cutswill be converting 2 locations into Tanning/Hair-Care Salons at atime. Each conversion is expected to take 30 days to complete. Doingthe conversions incrementally will allow Hollywood Star Cuts theability to remodel according to the Company’s specifications whilemaintaining revenues and retaining the current customer base. Duringthe remodel process, Hollywood Star Cuts will be interviewingFranchise Partner Candidates for each geographical area.
An outline of theacquisition terms are as follows:
Year Ending 2022, the Tanning Salons generatedapproximately $1,300,000.00 in revenue. The Tanning Salons createdroughly $250,000.00 in earnings.
Hollywood Star Cuts agreed to pay two times (2X)earnings for the entire operating business, a total of$500,000.00.
Twenty-Five Thousand Dollars ($25,000.00) has been paid uponclosing (June 20 th 2023).
Seventy-Five Thousand Dollars ($75,000.00) will bepaid upon physical receipt of the operations (July 3 rd 2023).
OneHundred Thousand Dollars ($100,000.00) to be paid January 2024.
The balance($300,000.00) to be paid January 2025.
Structuring the purchase in this way, allowsHollywood Star Cuts the ability to use current and future revenues topurchase such a valuable asset without seeking major outside financingor the “toxic” financing that plagues most small and micro-cappublic entities.
Hollywood Star Cuts is committed to the advancement of itsbrand. Hollywood Star Cuts believes this cutting-edge acquisitionallows for rapid and responsible growth. This acquisition allowsHollywood Star Cuts to add massive revenue in a responsible andmanageable way. Hollywood Star Cuts is enthusiastic about theCompany’s growth prospects and expects to expand rapidly through2023 and 2024.
AAGC and Hollywood Star Cuts will be conducting a Year-EndPublic Conference Call on Tuesday, June 27 th 2023.
Topics discussed willbe: Year-End revenues and Earnings.
Recent Purchase and Acquisitions.
Growing FranchiseOpportunities.
Other Subjects as Needed.
Once the address of the Company Officer iscompleted, participants of the Conference Call are encouraged to askquestions to ensure clarity.
Time: 4:00PM Western (7:00PM Eastern)
Call in Number:267-807-9601
Access Code: 526-855-601
As always, Hollywood Star Cuts and All AmericanGold Corp. would like to thank our fabulous crew members, ourbrilliant franchisees, our fantastic vendors, our excellent investorsand all future investors for their hard work and commitment to thevision that is Hollywood Star Cuts. Without all of them, HollywoodStar Cuts could not succeed.
All American Gold Corp. invites the public tofollow us on Twitter at as most updates andcommunication will be conducted there.
The public is also invited to follow us on and online at www.hollywoodstarcuts.com.
Forward-LookingStatement Any statements made in this press release which are nothistorical facts contain certain forward-looking statements; as suchterm is defined in the Private Security Litigation Reform Act of 1995,concerning potential developments affecting the business, prospects,financial condition and other aspects of the company to which thisrelease pertains. The actual results of the specific items describedin this release, and the company's operations generally, maydiffer materially from what is projected in such forward-lookingstatements. The company disclaims any obligation to update informationcontained in any forward-looking statement. This press release shallnot be deemed a general solicitation.
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Hollywood StarCuts
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