Exhibit 99.2
(NY-PARADISE-MUSIC)(PDSE) Paradise Announces Extension and Repricing of Public
Warrants
NEW YORK--Dec. 20, 2000--Paradise Music & Entertainment, Inc. "PDSE"
(Nasdaq: PDSE; http://www.pdse.com), an entertainment content and services
provider, today announced that it has decided to extend and modify the terms of
its 1,146,000 public warrants, which were initially issued in conjunction with
PDSE's 1997 Initial Public Offering (IPO). PDSE will extend the term of the
warrants to December 31, 2002. It will modify the warrants so that they will be
exercisable at the rate of one share of common stock for each five warrants
exercised, with an exercise price of $2.50 per share. The warrants will also be
modified to permit PDSE to redeem the warrants in the event the closing bid
price of its common stock equals or exceeds $4.00 per share for a period of 20
consecutive trading days ending within five days prior to the date the Company
elects to redeem them. The action will effectively reduce the number of shares
underlying the warrants by 60 % to approximately 229,200 from approximately
573,000.
The warrants are presently due to expire at the close of business on
January 21, 2001, and are exercisable at the rate of one share of common stock
for each two warrants exercised, with an exercise price of $7.20 per share, and
are redeemable in the event the closing bid price of the common stock exceeds
$7.20 per share for the requisite period.
The extension and modification of the warrants will be effective at the
close of business on January 21, 2001.
Paradise Music & Entertainment, Inc. is an entertainment company comprised
of three complementary units: PDSE Film and TV Group (Straw Dogs, Picture Vision
and Shelter Films - television commercial, music video, live event and film and
video productions); PDSE Music Group (PDSE Records Inc., All Access
Entertainment and Rave Music - record labels, producer of original music for
film and television and full-service music artist management); and PDSE Digital
Group (Paradise Digital Productions - Internet content development).
Legal Disclaimers: This Press Release may contain forward-looking
statements with the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Investors are cautioned that forward-looking statements are inherently
uncertain. Actual performance and results of operations may differ materially
from those projected or suggested in the forward-looking statements. The
forward-looking statements contained herein represent the Company's judgment as
of the date of this report hereof, and the Company cautions readers not to place
undue reliance on such statements.
CONTACT: Paradise Music & Entertainment, Inc.
Mark Pollard, 212/590-2100
Vice President
- or -
Jaffoni & Collins
Robert Rinderman or David Collins
212/835-8500 [email protected]
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