The Entertainment Internet Inc., creator of the CastNet.com online casting service and other film industry-based sites, said Monday it plans to merge with indie film production company 1st Miracle Group in a stock swap.
Under terms of the deal, Entertainment Internet will swap stock at the rate of one share for 12 shares of 1st Miracle. Shareholders from both companies will own 50% of the new entity, to be renamed Miracle Entertainment Inc.
The combined company is expected to have a market capitalization of approximately $36 million. Merger is expected to close after approval by shareholders.
“The combined company plans to continue to pursue their unique and synergistic lines of business,” said Mohamed Hadid, chairman of Entertainment Internet Inc., who is expected to serve as chairman.
Tony Cataldo, CEO of 1st Miracle and prexy of CastNet.com, will serve as co-chairman and CEO.
“This transaction is expected to create a scale of synergies that, when realized, will greatly benefit the shareholders of both companies,” Cataldo said. “We believe that this is an excellent time to be involved in the entertainment and Internet industries. They complement each other and can only grow exponentially.”