SAKL Continues Efforts to Restructure Debt

PRESS RELEASE:

SAKL Continues Efforts to Restructure Debt

SALT LAKE CITY, UT – December 5, 2016- Sack Lunch Productions, Inc. (OTC PINK: SAKL), recently issued its Q3 report which disclosed that it has fallen behind on certain payments owed to creditors.  At the time of the Q3 report, there was not a formal notice of default. 

Based upon a letter received on November 23, 2016 which provided for a 10 day cure, SAKL as of today SAKL is in default under the terms of its loan agreement with TCA Global Credit Master Fund LP (“TCA”) as a result of falling behind on its payment obligations to TCA during the fourth quarter of 2016.  The Company is involved in ongoing discussion with TCA regarding curing the defaults which includes bringing the Company into compliance with the agreements between the parties.

The company is also in discussions with two other larger creditors Midland IRA Inc. FBO Arthur Wulf Roth IRA is due in the amount of $199.638.35 as of September 30, 2016 as well as a note with Tangiers Global LLC for $240,000.

The company is currently in offseason.  However, sales for 2017 will commence in January on a large scale.  In January of 2016, the company sold approximately $1.2M in tickets.  January is typically a high sales month with relatively low expenses.

Richard Surber, CEO, commented “Our event companies are in the process of retooling marketing methods as well as making improvements to operations.  I believe that sales on the low side would be about $1.2M in January 2017.  However, we have plans to initiate a new marketing strategy which involves installing new management.  The potential incoming new management has stated that they believe that with their marketing methods ‘sales in January will hit the $3M mark’ more than doubling prior year sales.”

Mr. Surber, added “New management would bring in new events that would be acquired by SAKL.  Beyond improved sales with our existing events, I am personally working with investment bankers for the capital to acquire the new events as well as refinance existing creditors.”

Mr. Surber continued “We are also in what I believe to be the final stages of completing audited financial statements which will allow for the filing of a Form 10 registration statement.  The cost overages and delays were a distraction in 2016 that we hope to avoid coming into 2017.  SAKL nor any of its shareholders that hold restricted stock may rely on Rule 144 to resell stock into the open market until we are fully reporting.  Insiders are prohibited from selling shares into the open market unless the shares are registered or Rule 144 becomes available which would be 12 months after the effectiveness of a registrations statement on Form 10.  As it stands now, none of the creditors listed above may resell shares into the open market.”

Mr. Surber, concluded “We are staying the course with regard to bringing SAKL fully reporting with the Securities and Exchange Commission.  Furthermore, I believe that it is in our creditor’s best interest to continue working with the company into 2017 when sales will recommence and will allow us to cure delinquent payments.  With the prospects of opening more Lantern Fest events, and the acquisition of new profitable events, I believe that SAKL is on the precipice of great things in 2017 provided we get over what I believe to be a temporary.”

About Sack Lunch Productions, Inc.:

Sack Lunch Productions, Inc. (OTC PINK: SAKL) is an entertainment company that operates and franchises action oriented events in the U.S. and internationally. SAKL's events include: Slide the City® (1,000 foot long water slide for families and kids), Color Me Rad® (5k color race), The Dirty Dash® (mud and obstacle run), The Lantern Fest® (night-time party with lantern lighting and launch), and Trike Riot®. Learn more about SAKL's operations at www.sacklunchproductions.com, www.slidethecity.com, www.thelanternfest.com, www.thedirtydash.com, www.colormerad.com, www.trikeriot.com, and www.green-endeavors.com.

SAKL strongly encourages the public to read the above information in conjunction with its reports filed at www.otcmarkets.com. The actual results that SAKL may achieve could differ materially from any forward-looking statements due to a number of risks and uncertainties, including but not limited to adverse weather conditions, equipment failure, state and local health code laws which may impact obtaining permits and other risks associated with judgment calls made by various government officials.  Investors should not invest more than they can afford to lose.

IR Contact:

Richard Surber, CEO

801-575-8073 Ext 111

Richard@sacklunchproductions.com