NEW YORK, May 2, 2019 /CNW/ -- Frankly
Inc., (TSX VENTURE: TLK) ("the Company"), through
its Frankly Media subsidiary, has entered into a previously
announced agreement (the "AMP Agreement") with Triton
Digital, Inc. and its affiliated entities (collectively,
"Triton") to acquire the assets of Triton's AMP business,
including the AMP content management platform system for radio
broadcasters, as well as certain customer agreements to supply AMP
services to approximately 800 radio stations. The purchase price to
be paid under the AMP Agreement is US$3
million, subject to adjustment in certain
circumstances. The transaction is expected to close in
May 2019. For additional information
related to the acquisition, refer to the Company's previously filed
news release dated May 1, 2019.
As a supplement to the foregoing, the Company reports that,
based on information provided to the Company by Triton, for the
year ended December 31, 2018, the AMP
business generated gross revenues of approximately US$4.5 million, total operating expenses of
approximately US$2.9 million
(excluding approximately US$0.8
million of depreciation and amoritization) and net income of
approximately US$0.8 million.
These figures have not been audited or otherwise subject to
independent verification. The Company also explicitly notes
that the historical financial information provided herein is not
intended as guidance or as a forecast of future financial
performance of the AMP business, and the future financial
performance of the AMP business, both on its own and after
consolidation in the Company's financial statements, may differ
materially from its historical performance. The selected financial
metrics disclosed herein are intended to inform investors that the
AMP business is a revenue generating business, and do not
necessarily provide all of the information an investor requires to
make an investment decision. Investors should use caution when
interpreting the selected financial information related to the AMP
business.
About Frankly
Frankly Media provides a complete suite of digital solutions for
media companies to create, manage, distribute and monetize their
content on all platforms maximizing audience engagement and revenue
potential. The company is headquartered in New York with offices in Toronto and Atlanta. For more information, visit
www.franklymedia.com.
Notice Regarding Forward-Looking Statements
This release includes forward-looking statements regarding the
Company and anticipated transactions involving the Company,
including statements about the completion of the transaction
contemplated in the AMP Agreement and the timing therefor. Any
implication of the Company's future financial performance as a
result of the integration of the AMP business and its historical
financial performance is disclaimed by the Company. Actual
results could differ materially from any forward-looking statements
or information presented in this release as a result of known and
unknown risk factors and uncertainties, including regulatory
requirements with respect to the acquisition. The outcome of any
forward-looking statement cannot be guaranteed. Except as
required by applicable securities laws, forward-looking statements
speak only as of the date on which they are made and, other than as
may be required by law, the Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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SOURCE Frankly Media