Business
Tix Corporation Announces Share Purchases By Employees
Tix Corporation Announces Share Purchases By Employees.
About this update from Tix Corporation
[{"type":"text","content":"STUDIO CITY, CA, (June 17, 2011) — Tix Corporation (“Tix”) (OTCQX: TIXC), a leading entertainment company providing discount ticketing services and branded event merchandising, announced today that certain of its employees have each separately agreed to purchase an aggregate of 1,215,367 shares of Tix common stock from certain existing stockholders. The aggregate purchase price to be paid for all of the shares to be acquired by such purchasers is $2,430,734, or $2.00 per share, and the sellers have agreed to defer the payment of such purchase price in several installments over a five year period. The Company believes that these transactions will provide several important benefits to the Company and its stockholders including, among other things, strengthening employee relations and preserving valuable tax benefits currently available to the Company. All of the shares subject to each such purchase agreement will be held in escrow until the payment of the final installment to the seller under each such purchase agreement, at which time the shares will be released to the relevant purchaser. If a purchaser fails to make an installment payment when due, Tix is obligated to make the installment payment and all future installment payments when due under any such purchase agreement. If a purchaser so defaults, Tix will be entitled to acquire all of the shares for which installment payments under the relevant purchase agreement have already been made and all shares for which it makes future installment payments, subject in each case to the continuing rights of the seller under the relevant purchase agreement and subject to the terms of the related escrow agreement. If, following such a default by a purchaser, Tix fails to make any such installment payment when due, the shares representing the unpaid portion of the purchase price will be released from escrow and returned to the relevant seller and the remaining shares in escrow will be released to Tix. Each purchaser has obtained a proxy from its respective seller to vote all of the shares of common stock subject to their respective purchase agreement. Tix has agreed to loan to each purchaser an amount in cash sufficient to enable such purchaser to pay the purchase price installment payments when due to the respective sellers unde...