Sack Lunch Productions Inc (OTCMKTS:SAKL) is up over 100% today on acquisition news. This entertainment company, SAKL, already puts on color runs and lantern festivals around the country. Now, they will own Cool Events, which itself has 5 successful events it has been running around the country. This move puts more events under one umbrella and traders are liking what they see.
Cool Events currently operates 5 wildly successful brands including: Terrain Race, The Bubble Run, Black Light Run, Foam Glow, and Black Light Slide. The brands owned by Cool Events hosted in excess of 120 events in 2016 and is on track to host 138 events in 2017. The Cool Event brands generated over $20M in gross revenues for the year ended December 31, 2016. Cool Events is on track to generate north of $22M in revenues in 2017, with projected EBITDA in excess of $2M. Cool Events is reporting gross assets in excess of $4M. The assets consist primarily of cash, merchandise, and equipment
Sack Lunch Productions Inc (OTCMKTS:SAKL) is an entertainment holding company. The Company’s subsidiaries have operations in event management, film production and distribution. The Company operates through two segments: action-oriented events (Events) and health and beauty salons (Salons). The Events segment consists of the Company’s subsidiaries, Slide the City Productions, Inc. (Slide), Color Me Rad Productions, Inc. (CMR), Lantern Fest Productions, Inc. (Lantern), Dirty Dash Productions, Inc. (Dash) and Trike Riot. The Salons segment consists of approximately two Aveda Lifestyle salons and an Aveda retail store. The Company’s subsidiaries include Diversified Management Solutions, Inc. (DMS), Downtown Development Corporation (DDC), Green Endeavors, Inc. (Green), Redline Entertainment, Inc. (Redline), Trike Riot Productions Inc. (Trike), Wasatch Capital Corporation (WCC) and WG Productions Company (WG). The Company, through its subsidiaries, holds various national or international event brands.
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The Acquisition of Cool Events is expected to more than quadruple the scope and size of SAKL’s operations in 2018.
CEO of SAKL, Richard Surber, commented, “The proposed transaction, if consummated, will be a game changer for shareholders of SAKL. Based upon the initial proposed schedule of events for all brands coupled with the operational infrastructure and marketing model that is expected to be deployed for the 2018 season, we could very realistically be looking at the event subsidiaries generating upwards of $40M in gross revenues, with EBITDA exceeding $5M by the end of 2018. We have been working closely with Cool Events for nearly a year at this point. Over this time, I feel that we have established a rapport with the Cool Events team that will be invaluable in moving this transaction to fruition. I am ecstatic over the prospects of this combination.”
William Spata, CEO of Cool Events, commented, “I have a high-level confidence that Cool Events coupled with the current Sack Lunch brands can be one of the largest conglomerates of experiential events in the United States. My intent is to fully deploy our proprietary marketing systems, and our operational know-how to scale not only the number of events, but the participation levels to substantially higher levels on a per event basis. We have already witnessed the power of these principles, not only with our events, but also at several of The Lantern Fest® events that have doubled or in one instance tripled the number of participants, in part to our digital ad efforts.”
Sack Lunch Productions Inc (OTCMKTS:SAKL) understands it is a niche play and has now enlarged its reach. SAKL can now propose more events that appeal to a wider audience by adding Cool Events brands. A few of the events will even be combined, as the respective CEOs stated in their press. This looks like a win-win. SAKL has a market cap of $2.43M and this deal could be adding to that handsomely. Sign-up for continuing coverage on shares of $SAKL stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $SAKL, either long or short, and we have not been compensated for this article.