18 Sep 2008 12:00:33 PM
(Scott: “Come on gang, we gotta raise $55 million to save EliteXC! But…how?”
Gina: “Bikini car wash!”
Robbie: “Pirate treasure hunt!”
Kimbo: “Robbin’ ni**as!”)
Sherdog reports that Showtime Networks filed public notice with the U.S. Securities and Exchange Commission yesterday, announcing their intention to negotiate for the purchase of Pro Elite Inc. Showtime, a subsidiary of CBS Corporation, already has a 20% ownership stake in the L.A.-based MMA organization.
What makes the sale likely is how broke-ass Pro Elite is at this point. It’s already been widely reported that the company racked up $55 million in debt during its two years of operation, and to make matters worse, Pro Elite is struggling to obtain enough capital to operate in the short term. According to a new SEC filing, the company has been hustling for $3.5 million in financing, and their failure to secure it in the immediate future “[would] have a material adverse effect on the Company’s liquidity and capital resources and ability to continue as a going concern.” And guess what:
The Company no longer believes that a successful closing of the $3.5 million secured debt (with a funded amount of $3.0 million) will occur. Although the Company has received $1 million pursuant to the Note [ed. note: this refers to a loan made to Pro Elite by Showtime]…the $1 million funding defers such consequences only for a brief period of time while the Company continues to evaluate its options on how to respond to its severe liquidity problem.
Known most for its EliteXC and ShoXC brands, Pro Elite has also acquired such mid-level outfits as King of the Cage, Icon Sport, Rumble on the Rock, and Cage Rage over the last two years — meaning that it would be a powerful asset in the hands of the right manager. And who’s the Showtime exec who would be qualified to run it all? Well, that’s the $55 million question. More to come…Read More DIGG THIS