Business
Hollywood Media Corp. to Distribute $0.45 per Share to Shareholders and Focus on Realizing Value of Remaining Assets, Including Netco Partners JV, and Approves 1 Million Share Repurchase Plan
Hollywood Media Corp. to Distribute $0.45 per Share to Shareholders and Focus on Realizing Value of Remaining Assets, Including Netco Partners JV, and Approves 1 Million Share Repurchase Plan.
About this update from Novelstem International Corp.
[{"type":"text","content":"\n\n BOCA RATON, Fla., Jan. 16, 2018 (GLOBE NEWSWIRE) -- Hollywood Media Corp. (OTC Pink:HOLL) today announced a $0.45 per share cash distribution to its shareholders following the recently completed sale of its interest in an online ticketing business. The Company’s Board has also authorized the repurchase of up to 1 million shares of its common stock.\n Hollywood Media’s Board of Directors has declared a special one-time cash distribution of $0.45 per share which it will seek to have classified as a return of capital for tax purposes. The distribution is payable March 30, 2018 to shareholders of record as of the close of business on March 1, 2018. Hollywood Media has 16,131,477 shares outstanding as of January 16, 2018, having repurchased approximately 6.3 million shares over the past four years. Going forward, the Company looks to maximize the value of its 50% ownership interest in Netco Partners, a joint venture which owns Net Force, a prescient, fast-paced and commercially successful book series which centers on Internet and crypto-currency crime and espionage. The Company is actively engaged in a plan to resume publication of the Net Force series. It is also looking at ways to realize value from its other assets, such as its approximately $165 million in Federal net operating loss (NOL) carry-forwards and the inherent value of its shell, however the outcome of such efforts is very difficult to predict. The Company’s NOLs could be used to shelter income from Federal income taxes. At the current corporate tax rate of 21%, the NOLs could reduce or eliminate as much as $34 million in Federal tax obligations over many years, subject to limitations. Hollywood Media has approximately $12 million in cash plus $1.5 million in a holdback of additional monies due Hollywood Media from the purchaser of the online ticketing business, and the Company has approximately $2.5 million in liabilities. Payment of the $1.5 million holdback to Hollywood Media is subject to potential offsets for customary items.  Amounts not offset are to be released to the Company in cash installments beginning on or about December 2018, as follows:  $0.45 million on or about December 2018; $0.45 million on or about June 2019; and $0.60 million on or about December 2020. Further, the Company estimates the potential value of ...