Mood Media sells Canadian account portfolio to Stingray Digital
Transaction Valued at Approximately US$11 Million
TORONTO, June 27, 2014 /CNW/ - Mood Media Corporation (ISIN: CA61534J1057) (TSX: MM) (LSE AIM: MM) ("Mood Media" or the "Company") today announced an agreement to sell its remaining eight thousand Canadian commercial accounts to its long-term affiliate and operating partner, Stingray Digital ("Stingray"), for US$11.2 million. Stingray and Mood Media will continue to work together to serve the accounts with Mood Media services. The transaction further advances Mood Media's strategy to simplify its portfolio, aggressively integrate strategic assets, strengthen partnerships and streamline operations, while investing in its core businesses.
Under the terms of the agreement, Mood Media will receive an initial cash payment of US$9.5 million and upon the achievement of certain key performance indicators, Stingray will pay Mood Media US$1.7 million via an incremental payment after 12 months. Proceeds from the transaction will be targeted to strengthen the Company's balance sheet and deleverage even as it continues to invest in solutions that support growth.
"We continue to aggressively evaluate opportunities to simplify our portfolio, more effectively utilize Mood's operating infrastructure and invest in resources to deepen relationships with clients - activities that we believe will create enhanced value for our stakeholders," said Steve Richards, President and Chief Executive Officer of Mood Media. "Through this transaction we will monetize former DMX Canadian accounts that are not core to our current geographic growth strategy as they are located in territories served by Stingray, and therefore highly desirable to our valued long-term partner. This is another important milestone for Mood Media and it underscores our commitment to unlocking the value of our assets and capitalizing on new opportunities to enhance returns for all of our stakeholders."
About Mood Media Corporation
Mood Media Corporation (TSX:MM / LSE AIM:MM) is one of the world's largest designers of in-store consumer experiences, including audio, visual, interactive, scent, voice and advertising solutions. Mood Media's solutions reach over 150 million consumers each day through more than half a million subscriber locations in over 40 countries throughout North America, Europe, Asia and Australia.
Mood Media Corporation's client base includes more than 850 U.S. and international brands in diverse market sectors that include: retail, from fashion to financial services; hospitality, from hotels to health spas; and food retail, including restaurants, bars, quick-service and fast casual dining. Our marketing platforms include 77 of the top 100 retailers in the United States and 49 of the top 50 quick-service and fast-casual restaurant companies.
About Stingray Digital Group
Stingray Digital is the leading multi-platform music service provider in the world, with more than 100 million subscribers in 113 countries around the world. Geared towards individuals and businesses alike, the company's commercial entities include leading digital music and video services Galaxie, Music Choice International, Concert TV and The KARAOKE Channel. The company also offers various business solutions, including sensory marketing solutions via its Stingray360 division and music licensing services through Stingray Music.
Majority-owned by Telesystem, Novacap and Boyko Investment Corporation, Stingray Digital is headquartered in Montreal and has over 200 employees in offices across Canada, as well as additional offices in Los Angeles, Miami, London, Amsterdam and Tel Aviv. The company stood out by ranking in the top 2014 Profit 500, Canada's fastest growing companies. For more information, please visit www.stingraydigital.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements with respect to Mood Media and its expected growth, results of operations, performance, financial condition, strategy and business prospects and opportunities, as well as with respect to the contingent payment of the remaining purchase price for the Canadian commercial accounts from Stingray upon achievement of certain key performance indicators. There can be no assurance that those performance indicators will be achieved, in whole or in part, or that such remaining purchase price will be paid, in whole or in part. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would" and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important assumptions and known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: the achievement of certain key performance indicators, the impact of general market, industry, credit and economic conditions, currency fluctuations as well as the risk factors identified in Mood Media's management discussion and analysis dated May 8, 2014 and Mood Media's annual information form dated March 31, 2014, both of which are available on www.sedar.com. While Mood Media considers these factors and assumptions to be reasonable based on information currently available, they are inherently subject to significant uncertainties and contingencies and may prove to be incorrect.
Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Mood Media.
Forward-looking statements are given only as at the date hereof and Mood Media disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
SOURCE Mood Media CorporationFor further information:
Mood Media Corporation
Tel: 512 592.2438
Mood Media Corporation
Tel: 704 972.7947
514-664-1244, poste 2362