With Sale, IDW Exclusively Focused on its Integrated Multi-Media Businesses: Publishing and Entertainment
NEWARK, NJ / ACCESSWIRE / July 17, 2020 / IDW Media Holdings, Inc. (OTC PINK:IDWM), an integrated multi-media company, today announced that it has agreed to sell CTM Media Group Inc. (CTM), a wholly-owned subsidiary, to IDW's Chairman, Howard Jonas. CTM is a tourism-focused brochure distribution and marketing company.
The sale price is $3.75 million plus potential additional payments to IDW contingent on the attainment of a performance metric by CTM or certain subsequent sales of CTM. The base sale price will be paid by the retirement of $3.75 million of the $5.0 million in debt owed to Howard Jonas. In addition, Mr. Jonas has agreed to convert the remaining $1.25 million in debt into 314,070 shares of IDW Media Holdings Inc. Class B Common stock.
Ezra Rosensaft, IDW's Chief Financial Officer, commented, "The sale of CTM, which operates primarily in the travel and tourism market, enables IDW to focus completely on the pursuit of exciting opportunities to build our media businesses. The sale should have a positive impact on our financial performance in the coming quarters while significantly strengthening our balance sheet and enhancing our capacity to invest in long-term growth."
The sale is subject to approval by IDW shareholders, including a majority of its minority holders (the holders of a majority of the shares of Class B common stock not held by affiliates of Mr. Jonas or his family), as well as approval by the lenders of CTM's loans under the federal Small Business Administration's Paycheck Protection Program (PPP) and other customary conditions.
IDW Media Holdings, Inc. (OTC PINK:IDWM) is an integrated multi-media company. IDW's businesses include IDW Publishing - a leading publisher of comic books and graphic novels, IDW Entertainment - a producer and distributor of franchise content through television and other media, and CTM Media Group - one of North America's largest distributors of information for tourists and travelers.
SOURCE: IDW Media Holdings Inc.