Comet Enterprises of Encino has acquired two video-rental companies, Video Library and an affiliate, Video Excitement of America, for stock valued at about $1.2 million.
The two video companies are based in Billings, Mont., and operate or franchise 17 outlets in Montana, Idaho and Arizona. Video Library is not related to a company of the same name in San Diego, said Comet Chairman William F. Coffin.
Comet bought the Montana companies last week from their owner, Rebecca Reno, for 4.24-million newly issued shares of Comet stock, which closed Monday at 28 cents a share bid in over-the-counter trading. Comet now has 8.48 million common shares outstanding and Reno, who was named Comet's president, owns 50% of the stock. Coffin owns 1 million Comet shares, or 12%.
Before the acquisition, Comet was a shell company whose main asset was $1 million in cash. Comet formerly was a video-game maker called Star Amusement, which went public three years ago, Coffin said. Star Amusement liquidated its video-game business in 1986, changed its name to Comet and began searching for acquisitions, he said.