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Media Central Corp. V.AAO


Primary Symbol: FBOP

Media Central Corporation Inc. is an independent and alternative media company situated to acquire and develop high-quality publishing assets, starting with the recent launch of CannCentral.com, a robust news, lifestyle and community cannabis platform curated for the human experience. Our strategic corporate team is composed of publishing, technology and capital markets professionals who are poised to deliver high-quality content, strategy and substantive value across a number of platforms.


GREY:FBOP - Post by User

Post by PitchinPennieson Mar 12, 2022 12:28pm
382 Views
Post# 34509051

The wings are torn off the FLYY: Now, the day after tomorrow

The wings are torn off the FLYY: Now, the day after tomorrowConsistent with the habit of not issuing material change reports, Media Central failed to inform  the market about its plan to reduce publication frequency for NOW Toronto from weekly to monthly.

As @Reallitycheck points out, this reduction will result in a significant hit to cash flow. Therefore management is required to advise the CSE and shareholders.

But, look. We're past the point of imagining Media Central has any clue how to conduct their affairs. Every indication is that there's either a chimpanzee flying the plane, or else the cockpit is empty.

So, what happens next?

Here's what I think. The two main assets, though mortally damaged and left for dead, might be preserved with some quick and decisive reorganization.

Toward which end, go ahead and consider the following, which I offer without charge or obligation:

1. Media Central BOD resigns at 9:00 a.m. Monday (03/14/22.) A receiver is appointed at that time. In this fantasy scenario, Kirk high-tails it back to Colorado come Tuesday, fearing litigation.
2. A new leadership group, this time one with a scintilla of practical communications sector   knowledge, steps forward to lead NOW Toronto and Georgia Straight and their digital editions with approval of the receiver, offering the following terms:
-- Debenture holders are offered 70% of the debt in cash (requiring a projected investment of ~$700k, excluding legal costs.)
-- Union and non-union employees who are owed salary or benefits are compensated with full back pay plus an additional collective ownership stake of ~9-10% in the reorganized company, paid as a retention bonus. At their individual discretion, employees may elect to forego a small portion of back pay or future compensation for a slightly larger ownership stake, making this to some minor degree a worker-participatory enterprise. Employees would be offered two new board of directors positions (on a new BOD of seven.) Estimated investment: $100-200k, excluding legal costs and the value of new shares issued to workers.
-- A new business plan is created, which emphasizes the aggressive pursuit of revenue opportunities Kirk & cohort were too lazy and/or self-deluded to go after: ie, print advertising, live and virtual events, reader experiences, niche publishing, sponsored content, joint media ventures, contract publishing and content creation. Consistent with current operating plans of other alt-weeklies, the new monitization model would invite readers to pay for premium content and experiences, or offer their financial support via Patreon and other "fan" platforms. Estimated cost of implementation of the business plan: $100k.
-- Current FLYY investors will receive one consolidated share in the reorganized company for every two thousand shares held (1:2,000 reverse split), placing a value of $10 on each reissued share. 
-- Regular publication of NOW Toronto resumes with great fanfare on Canada Day 2022. Trading in FLYY (under a new name and symbol) resumes shortly thereafter.
-- Under the new structure, for having poined up $900k-1M and the creative effort of establishing a rescue plan, the rescuer will receive 66% of ownership in the newco., including control of treasury shares. At present market cap, that would be an initial 33-40% return on capital, so potentially worth the notice of an angel capitalist. Current FLYY shareholders will maintain a 25% stake in newco., employees and certain key suppliers, including freelance contributors, will receive up to a 9% stake in newco.

This scenario is by no means foolproof. Would newco. emerge debt-free and profitable? Pending a plausible business plan and realistic revenue projections, could be. Would the turnaround be guaranteed? No. Would the current leadership agree to this sort of resolution? Unlikely. Corner-office laziness and self-delusion (and, not to forget, Covid) led to this situation, and as is often noted, odds are you can't fix stupid.

But here's a pathway, which otherwise seems to be lacking.

That's all. Thoughts?
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