Las Vegas, NV, June 21, 2023 — McapMediaWire — All American Gold Corp. (OTC: AAGC) is ecstatic to update the public about the recent acquisition leading to massive growth and advancements of Hollywood Star Cuts.
On Monday, June 19th, 2023, Hollywood Star Cuts and All American Gold Corp. (AAGC), completed the acquisition of a family-owned chain of Tanning Salons.
Hollywood Star Cuts is a Full-Service Family Hair and Beauty Salon with Tanning available at most locations. Hollywood Star Cuts is a “Themed” Beauty/Tanning Salon where the customer is treated like a “Movie Star”, and they are the “Star of the Show”! Hollywood Star Cuts currently operates multiple Corporate owned locations in the greater Boise area and is developing Franchise locations across The United States.
On June 12th, 2023, Hollywood Star Cuts entered into a Letter Of Intent (LOI) to finalize the purchase of a chain of Family owned Tanning Salons. This LOI granted Hollywood Star Cuts the authority to negotiate the existing leases and initiate new leases where necessary. Hollywood Star Cuts is delighted to report that lease negotiations proceeded flawlessly.
On Monday, July 3rd, 2023, Hollywood Star Cuts will formally take possession of all 14 Tanning Salon Locations. A member of the management staff has agreed to remain for six (6) months to allow an easy transition to Hollywood Star Cuts.
As stated in an earlier Press Release dated May 11, 2023, the Tanning Salons are located in Florida, Georgia and Tennessee. The family-owned Tanning Establishment currently operates 14 locations and generates roughly One Million Three Hundred Thousand Dollars ($1,300,000) in annual revenues.
The independent auditing firm enlisted by All American Gold Corp. has validated the stated revenues and has confirmed to all parties that the financial situation of the Tanning Facilities is strong and can be audited going forward.
Hollywood Star Cuts will 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 to convert them into combo Tanning/Hair-Care Salons their ability to generate future profits is unlikely. Hollywood Star Cuts has negotiated a fair lease buyout and will be utilizing the tanning equipment in future Hollywood Star Cuts locations.
The remaining ten (10) locations will operate without change for 60 days. Hollywood Star Cuts will be monitoring the operations of the Tanning Salons and creating a plan of action to convert the operating Tanning Salons into Tanning/Hair-Care Salons and creating the “Movie Star” experience that is launching Hollywood Star Cuts into the industry leader and a difference maker in this multi-billion-dollar industry.
Hollywood Star Cuts will be converting 2 locations into Tanning/Hair-Care Salons at a time. Each conversion is expected to take 30 days to complete. Doing the conversions incrementally will allow Hollywood Star Cuts the ability to remodel according to the Company’s specifications while maintaining revenues and retaining the current customer base. During the remodel process, Hollywood Star Cuts will be interviewing Franchise Partner Candidates for each geographical area.
An outline of the acquisition terms are as follows:
Year Ending 2022, the Tanning Salons generated approximately $1,300,000.00 in revenue. The Tanning Salons created roughly $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 upon closing (June 20th 2023).
Seventy-Five Thousand Dollars ($75,000.00) will be paid upon physical receipt of the operations (July 3rd 2023).
One Hundred 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, allows Hollywood Star Cuts the ability to use current and future revenues to purchase such a valuable asset without seeking major outside financing or the “toxic” financing that plagues most small and micro-cap public entities.
Hollywood Star Cuts is committed to the advancement of its brand. Hollywood Star Cuts believes this cutting-edge acquisition allows for rapid and responsible growth. This acquisition allows Hollywood Star Cuts to add massive revenue in a responsible and manageable way. Hollywood Star Cuts is enthusiastic about the Company’s growth prospects and expects to expand rapidly through 2023 and 2024.
AAGC and Hollywood Star Cuts will be conducting a Year-End Public Conference Call on Tuesday, June 27th 2023.
Topics discussed will be: Year-End revenues and Earnings.
Recent Purchase and Acquisitions.
Growing Franchise Opportunities.
Other Subjects as Needed.
Once the address of the Company Officer is completed, participants of the Conference Call are encouraged to ask questions 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 American Gold Corp. would like to thank our fabulous crew members, our brilliant franchisees, our fantastic vendors, our excellent investors and all future investors for their hard work and commitment to the vision that is Hollywood Star Cuts. Without all of them, Hollywood Star Cuts could not succeed.
All American Gold Corp. invites the public to follow us on Twitter at HStarcuts as most updates and communication will be conducted there.
Forward-Looking Statement: Any statements made in this press release which are not historical facts contain certain forward-looking statements; as such term 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 this release pertains. The actual results of the specific items described in this release, and the company’s operations generally, may differ materially from what is projected in such forward-looking statements. The company disclaims any obligation to update information contained in any forward-looking statement. This press release shall not be deemed a general solicitation.