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Tix Corporation Announces Agreement to Sell its Live Entertainment Subsidiary
Tix Corporation Announces Agreement to Sell its Live Entertainment Subsidiary.
About this update from Tix Corporation
[{"type":"text","content":"Tix Corporation Announces Agreement to Sell its Live Entertainment Subsidiary Studio City, CA, November 22, 2010 – Tix Corporation (the “Company”) (OTCQX: TIXC), a leading provider of discount ticket brokerage services and branded event merchandising, today announced that it has entered into a Securities Purchase Agreement to sell its wholly-owned Live Entertainment subsidiary, Tix Productions, Inc. (“TPI”), to members of TPI’s management. Under the terms of the agreement, the Company will sell 100% of the outstanding capital stock of TPI to TPI’s management in exchange for approximately 2.3 million shares of the Company’s common stock. TPI will also pay the Company up to $487,000 from distributions it receives from the Company’s previous investments in “American Idiot” and “Rain – A Tribute to the Beatles on Broadway”, both of which are currently performing on Broadway. Tix Corporation reserved the right to entertain additional acquisition interest in TPI and may accept a superior offer through December 3, 2011. The Company announced on September 13, 2010 that it had retained the investment banking firm, B. Riley & Co., LLC (“B. Riley”) as its financial advisor to explore certain strategic alternatives including the sale of TPI. After considering TPI’s potential and consulting with B. Riley, among other things, the Company determined that the sale of TPI was in the best interests of its stockholders as it would allow the Company to focus on its core discount ticket operations. B. Riley performed a full market test, which included contacting and gauging interest from a wide range of strategic and financial buyers. B. Riley received no offers for TPI that matched or exceeded the offer from TPI’s management. B. Riley provided a fairness opinion to the Company in connection with this transaction that indicated the consideration to be received by the Company is fair, from a financial point of view. Mitch Francis, Chairman and CEO of the Company, said, \"This divestiture will allow us to focus more of our attention on our thriving core discount ticketing business. We are excited about several internal growth initiatives and plan on taking advantage of a...