Business
Tix Corporation Announces the Purchase of 4.2 Million Shares of its Common Stock
Tix Corporation Announces the Purchase of 4.2 Million Shares of its Common Stock.
About this update from Tix Corporation
[{"type":"text","content":"Tix Corporation Announces the Purchase of 4.2 Million Shares of its Common StockStudio 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 purchased approximately 4.2 million shares of its common stock from Joseph B. Marsh and Lee Marshall, the co-Chief Executive Officers of Tix Productions, Inc. (“TPI”).Under the terms of the agreement, the Company will pay for the shares in eight quarterly installments commencing January 3, 2011 for an aggregate purchase price of approximately $5.0 million, or $1.20 per share. The shares will initially be deposited into an escrow account as security for the sellers, during which time an appointee of the Company will have the right to vote the shares. Upon each of the final four quarterly payments, 25% of the shares will be released from escrow to the Company. In connection with this sale, Mr. Marsh resigned from the Company’s Board of Directors.The Company also announced today that it entered into a separate agreement to sell its wholly-owned Live Entertainment subsidiary, comprised of TPI, to members of TPI’s management. In exchange, TPI’s management will transfer 2.3 million shares of the Company’s common stock, including approximately 1.9 million additional shares owned by Mr. Marsh and Mr. Marshall, to the Company. As stated in the announcement, the Company may entertain and accept superior offers to acquire TPI through December 3, 2011. Should the Company accept a superior offer and the agreement with TPI’s management is terminated, the Company will purchase an additional 1.9 million shares from Mr. Marsh and Mr. Marshall, for a total of approximately 6.1 million shares (including the 4.2 million shares) for $1.20 per share for a total of approximately $7.3 million. The shares received by the Company from TPI’s management (or the additional 1.9 million shares to be purchased from Mr. Marsh and Mr. Marshall in the event the agreement with TPI’s management is terminated) will be placed into escrow and released to the Company in accordance with the quarterly schedule mentioned above. Mitch Francis,...