TORONTO, Oct. 1 /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 all of the outstanding shares of Haizou Media Corporation ("HMedia") for an initial purchase price of $5,000,000 (the "Purchase Price"), payable through the issuance of common shares of Bassett Media to the shareholders of HMedia (the "Vendors") at an ascribed price of $0.22 per share. The Vendors may be entitled to receive an additional earn out payment of up to $2,000,000, payable in Bassett Media shares at an ascribed price of $0.22 per share, if HMedia meets certain earnings and EBITDA performance targets during fiscal 2010.
Formed in 2006 to take advantage of the growing demand for advertising services in China, HMedia now owns and operates over 50,000 advertising display screens that are strategically located in high-traffic neighbourhoods across 20 cities in China and estimated to reach approximately 20 million consumers daily.
Closing of the Acquisition is conditional upon, inter alia, completion of a concurrent equity financing on terms satisfactory to the parties, the negotiation and execution of a definitive share exchange 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 HMedia undertake no obligation to update forward looking information, other than as required by law.
SOURCE BASSETT MEDIA GROUP CORP.
For further information: For further information: Matthew Bassett, President and Chief Executive Officer, Bassett Media Group Corp., Phone No.: (416) 214-5997