TORONTO, Aug. 31 /CNW/ - Bassett Media Group Corp. ("Bassett Media" or
the "Company"; TSX-V: BMG) is pleased to announce the signing of a letter of
intent with respect to the proposed acquisition (the "Acquisition") of certain
of the assets (the "Target Assets") of Sidetrack Technologies Inc.
("Sidetrack") for an aggregate purchase price of $3,000,000 less assumed
liabilities (the "Purchase Price"). The Purchase Price will be satisfied
through the issuance of common shares of Bassett Media at an ascribed price of
$0.22 per share.
Sidetrack owns and operates full-motion display systems for use as an
advertising medium in subway and rail system tunnels. Sidetrack's tunnel
vision system (TVS) combines traditional animation theory with advanced
digital technologies to create an extremely unique and highly innovative
advertising delivery medium in subway and rail system tunnels. Similar to a
children's "flip book", the Sidetrack system presents 360 sequential images to
riders as the train passes by. The images appear to animate, creating
commercial "mini-movies" that play for approximately 15 seconds. This new
display technology has opened up an entire new avenue for leading edge
marketers. With its high visibility, strategic placement location and ability
to deliver messages to captive, targeted audiences, Sidetrack is a powerful
way for advertisers to connect with consumers. Sidetrack currently operates in
7 markets globally including San Francisco and Los Angeles in North America
and internationally in London, Mexico City, Monterrey and Rio de Janeiro.
Video messages play to audiences in the busiest tunnels at destinations
including the Embarcadero in San Francisco; Hollywood and Universal Studios;
and London's Heathrow Airport and Paddington Station.
The Target Assets include the agreements that permit Sidetrack to
advertise in the above-mentioned transit systems and all associated
intellectual property rights.
"The proposed Sidetrack acquisition marks a significant step toward
Bassett Media becoming a global media company. It will also provide the
Company with a platform to expand into other mass transit centres," remarked
Matthew Bassett, President and C.E.O. of Bassett Media.
Closing of the Acquisition is expected to occur on or before September
30, 2009 and will be conditional upon, inter alia, the negotiation and
execution of a definitive asset purchase agreement, completion of satisfactory
due diligence, and receipt of all required third party consents and
security-holder and regulatory (including TSX Venture Exchange) approvals.
About Bassett Media
Bassett Media is a Toronto-based media company created for the purpose of
holding and developing various media-focused businesses. Its two primary
business units in the media space are Impulse Media and Concourse Media.
Concourse Media was founded in 2002 and is one of the largest network
providers of digital advertising in Canada. Focused in Toronto's underground
PATH system, Canada's most densely populated urban economic centre, Concourse
Media's existing network of 70 high-impact digital display screens reaches
over 350,000 viewers on a daily basis.
Impulse Media, also based in Toronto, was founded in 2005 and operates
Canada's largest in-store national retailer digital advertising network.
Impulse focuses on point of purchase sales with strategically-positioned
digital screens in PharmaPlus and Rexall pharmacies throughout the country.
FORWARD LOOKING STATEMENTS
This news release contains "forward-looking statements" within the
meaning of applicable securities laws relating to the proposal to complete the
Acquisition. Readers are cautioned to not place undue reliance on
forward-looking statements. Actual results and developments may differ
materially from those contemplated by these statements depending on, among
other things, the risks that the parties will not proceed with the
Acquisition, that the ultimate terms of the Acquisition will differ from those
that currently are contemplated, and that the Acquisition will not be
successfully completed for any reason (including the failure to obtain the
required approvals or clearances from regulatory authorities). The statements
in this press release are made as of the date of this release. Bassett Media
and Sidetrack undertake no obligation to update forward looking information,
other than as required by law.
For further information:
For further information: Matthew Bassett, President and Chief Executive
Officer, Bassett Media Group Corp., Phone No.: (416) 214-5997