| Tomorrow's Morning, Inc. | |||
| (www.morning.com) | |||
| Ticker: | TOMM | 160 North Thurston Avenue | |
| Exchange: | NASDAQ-Small Cap Market | Los Angeles, CA 90049 | |
| Industry: | Manufacturing (SIC Code 2711) | (310) 440-2778 | |
| Type of Shares: | Common Shares | Filing Date: | 6/10/96 | |
| U.S. Shares: | 1,160,000 | Offer Date: | 3/17/97 | |
| Non-U.S. Shares: | 0 | Filing Price: | $5.50 | |
| Primary Shares: | 1,160,000 | Offer Price: | $5.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.47 | |
| Offering Amount: | $6,380,000 | Selling: | ||
| Expenses: | $491,300 | Reallowance: | ||
| Shares Out After: | 2,663,722 |
| Manager | Tier | Phone |
| J.E. Liss & Company, Inc. | Lead Manager | (414) 225-3555 |
| Issuer's Law Firm: | Herzog, Fisher & Grayson |
| Bank's Law Firm: | Kranitz & Philipp |
| Auditor: | Coopers & Lybrand |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 6/30/96 | 9/30/96 | 9/30/95 | 9/30/96 | ||
| Revenue: | $0.11 | $0.01 | $0.03 | Assets: | $0.35 |
| Net Income: | -$2.64 | -$0.32 | -$0.75 | Curr Assets: | |
| EPS: | -$2.19 | -$0.27 | -$0.62 | Liabilities: | $2.50 |
| Prior EPS: | -$0.93 | Curr Liabilities: | |||
| Cash Flow/Oper: | -$1.17 | Equity: | -$2.15 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a weekly newspaper for kids 8 to 14, distributed nationally to homes and schools. It's designed to motivate kids to read, become more involved in the world around them and more easily understand the issues that affect their lives. It covers national and international news, as well as entertaining features on science, the environment, nature, the stock market and sports. While the Newspaper is currently the company's only product, the company is in the process of entering into a variety of other children's media markets based on the Newspaper's theme, including video, electronic and multimedia products, as well as ancillary publishing and merchandising. The first elements of its expansion strategy are already in place, including a completed prototype CD-ROM journalism game, the outline of children's book an on-going discussions with a variety of corporate distribution and sponsorship partners. |
| Competition |
| For the age group comprising its target market, the company's print publishing competitors marketing direct to schools include The Weekly Reader, the Scholastic group of magazines, and Time for Kids. Those products are published by companies much larger than the company, with significantly greater financial, marketing and other resources. The Weekly Reader and Scholastic have long been in schools and are priced somewhat lower than the Newspaper. |
| Business Plan |
| The company currently markets the Newspaper through telemarketing and direct mail solicitations to school teachers in the 4th, 5th, 6th, 7th and 8th grades. The company's goal is to develop a range of products and services which can be marketed to various customer bases, one of which is the readership of the Newspaper. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of debt; funding of various Newspaper marketing campaigns; development, production and marketing of new products and services; hiring additional personnel; and general corporate purposes including working capital. |
| Additional Underwriter Compensation |