BoysToys.com has signed an initial deal for $1 million in debt financing from Essex Capital Holdings, LTD.
The financing will be used for marketing and expanding the online porn company's e-commerce adult subscriber sites, as well as finishing their 15,000 square foot San Francisco gentlemen's club.
"The long term relationship that we are establishing with Essex Capital Holdings, LTD. will enable (us) to have the financial resources to become a key player in the consolidation of the adult entertainment industry," says BoysToys CEO Ralph Amato.
BoysToys.com has received $700,000 of the monies so far and will get the remainder as needed.
Terms of the deal include BoysToys remitting "interest only" payments quarterly, with the company keeping the option to retire the entire loan amount within eighteen months, without penalties, or turn the principal on the loan into restricted common stock shares at the end of eighteen months.
A corporate statement in June 1998 listed BoysToys.com's assets at over $1.2 million, with liabilities of just over $2.0.
BoysToys is now negotiating more funding with Essex to acquire certain established adult Internet companies.
The Essex deal is the latest among plans BoysToys hopes keep it growing as a heavy hitter in online adult entertainment. Their primary focus is providing material originating from their clubs for what they estimate as over 45,000 active adult Web sites, as well as keeping their Web portal site (www.boystoys.com) active and expanding.
The company also has plans for more upscale "gentlemen's clubs" which it hopes will help lead to onsite film production and live video streaming for advanced online media content, according to its Web site's corporate statement. They also plan for live content providing e-commerce revenues on their own adult web sites, content they want to repackage later and distribute among other established adult Web sites.
A June article in Forbes, "Porn Goes Public," estimated the legal porn business today is worth about $56 billion globally.
--- Andrew Wyke
