Easily a spec buy IMO12:05, Thursday, 18 August 2005 Sydney -...

Easily a spec buy IMO

12:05, Thursday, 18 August 2005

Sydney - Thursday - August 18: (RWE Aust Business News) -
Entertainment Media (ASX:ETC) will quarantine and dispose of
approximately $2.0 million of the legacy liabilities of GalaVu
Entertainment Network Inc, a subsidiary of its Canadian based subsidiary
Entertainment Media & Telecoms Corp.
The process is expected to allow the liabilities, which were
assumed on acquisition of GalaVu, to be satisfied from internally
generated funds available to GalaVu, without recourse to any funding from
EMT Canada.
The process also required that the operations first be turned
cash flow positive before the restructure could commence.
This was achieved at the end of July 2005 and as of August, other
than for the once-off restructuring costs, the Canadian operations are
expected to produce $C90-120m of quarterly positive cash flow.
Given the US operations are already cash flow positive the
restructure of the Canadian operations is expected to substantially
change for the better the future landscape of the North American assets
and give it the ability to substantially fund the installation of the
sales pipeline internally.