Business
Tix Corporation Announces Stock Repurchase and Director Resignations
Tix Corporation Announces Stock Repurchase and Director Resignations.
About this update from Tix Corporation
[{"type":"text","content":"\n \n \n Tix Corporation Announces Stock Repurchase and Director Resignations\n \n \nTix Corporation Announces Stock Repurchase and Director Resignations\n \n STUDIO CITY, CA--(Marketwired - Dec 24, 2013) -  Tix Corporation (the \"Company\") (OTCQX: TIXC), a leading provider of discount ticketing services, today announced that it has purchased 5,451,259 shares of common stock of the Company, or 23% of its common stock outstanding, owned by Baker Street Capital, L.P. (\"BSC\") pursuant to an agreement entered today with BSC and its affiliates, Baker Street Capital Management, LLC and Vadim Perelman (collectively, \"Baker Street\"). The aggregate purchase price for the acquired shares is $10,629,955, or $1.95 per share, of which $1.30 per share, or $7,086,637, in cash, has been paid today and $3,543,318, or $0.65 per share, is payable on or prior to December 24, 2014 together with interest accrued thereon at an annual rate of 10% (the \"Anniversary Payment\"). At the election of the Company, it may prepay the Anniversary Payment at any time, in one or more payments, and interest will cease to accrue on any portion of the Anniversary Payment paid. The purchase price paid was funded from the Company's cash on hand. The payment of the Anniversary Payment and interest thereon is guaranteed by Tix4Tonight LLC, a wholly-owned subsidiary of the Company. Following the repurchase, BSC no longer owns any of the Company's outstanding common stock. The repurchased shares have been returned to the Company's treasury and the total number of outstanding shares of the Company following this transaction is 18,218,572. The Company believes that the repurchase and retirement of these shares will be accretive to the stockholders and enhance their value.\n Under the agreement, Baker Street will be subject to certain restrictions, including standstill restrictions and, for a period of five years, covenant not to compete with the Company or interfere with its business in Las Vegas. Baker Street and the Company have also agreed to mutual releases of claims. Pending the payment in full of the Anniversary Payment and interest thereon, the Company has also agreed to conduct its business in the ordinary course, consistent with past practice, and to be subject to various restrictions on its activities, including, subject to certain exceptions, distributi...