TORONTO, July 05, 2019 (GLOBE NEWSWIRE) -- ZoomerMedia Limited (TSXV:ZUM) (“ZoomerMedia”, or the “Company”), issues clarification on relationship with Canopy Growth Corporation (“Canopy”).
Further to the news release dated July 4, 2019 titled “ZoomerMedia Announces Plan To Develop New Medical And Recreational Cannabis Products Specifically For The Zoomer Demographic With Canopy Growth”, as requested by Investment Industry Regulator Industry of Canada (“IIROC”) following a trading halt, ZoomerMedia is issuing the following clarification on the nature of its agreements with Canopy.
On April 25, 2019, the Company issued its results for the three and six months ended February 28, 2019. Included in the news release along with interim consolidated financial statements and management discussion and analysis (“MD&A”) were mention and details of the two agreements ZoomerMedia has with Canopy. Please refer to the Additional Information section below.
The first agreement is an affinity partnership agreement which allows Canopy the exclusive right to use the “CARP Recommended” and “Zoomer Recommended” seals for Canopy’s medical and recreational brands, respectively. This agreement is for a two-year term commencing October 17, 2018, with a one-year renewal option. As part of this agreement, Canopy has committed to an annual minimum spend of $300,000 with ZoomerMedia through its various media properties and television production facilities.
The second agreement is an exclusive brand licensing agreement which allows Canopy and ZoomerMedia to work together to develop Zoomer and CARP branded cannabis products to be ready for retail sale by April 2021 at the latest. As each product is developed, a separate royalty arrangement will be agreed upon by ZoomerMedia and Canopy. This exclusive brand licensing agreement also has a two-year term commencing October 17, 2018 with a one-year renewal option. As part of this agreement, ZoomerMedia received 16,147 common shares of Canopy.
Additional Information
Detailed financial information and Management’s Discussion and Analysis for the three and six months ended February 28, 2019 can be found on SEDAR’s website at www.sedar.com. The financial information included in this release is qualified in its entirety and should be read together with the interim consolidated financial statements for the three and six months ended February 28, 2019, including the notes thereto.
About ZoomerMedia Limited
Founded in 2008 by Moses Znaimer (Citytv, CP24, MuchMusic, Bravo! etc.), ZoomerMedia is Canada's leading diversified multimedia company devoted to creating content, services and experiences for Canada's largest demographic - "Zoomers" or the 16.1 million Canadians aged 45plus - on all platforms: television, radio, print, digital, and live events. ZoomerMedia’s television properties include VisionTV, Canada’s only multi-faith specialty television service available in 9 million homes; ONETV: Get Fit, a 24-hour fitness and health channel with yoga and exercise programs viewers can do from home; JoyTV in Vancouver, Victoria, Surrey and the Fraser Valley; and FAITHTV, the Nation's Faith Station. ZoomerMedia’s radio properties include The New Classical FM (96.3 FM in the Greater Toronto Area/103.1FM in Eastern Ontario/102.9FM in Southern Georgian Bay), English Canada’s only commercial all-classical music radio service; and Zoomer Radio (AM740 and 96.7FM in Downtown Toronto), playing ZoomerHits - Music That Changed The World. ZoomerMedia also publishes ZOOMER Magazine, the largest paid circulation magazine in Canada for the mature market, everythingzoomer.com - Canada’s leading provider of online content targeting the 45plus demographic, and On The Bay Magazine, a regional lifestyle magazine published quarterly for the 20 towns and villages of Southern Georgian Bay, Ontario. ZoomerMedia's tradeshow division operates The ZoomerShow in Toronto and Vancouver, Canada's largest annual lifestyle expos and consumer shows for the 45plus, and produces Moses Znaimer's ideaCity conference, the 3-day Toronto-based conference celebrating its 20th anniversary this year. Both ZoomerMedia and CARP are located in The ZoomerPlex, a 2.6-acre state-of-the-art production and live event complex in Toronto's Liberty Village. For more information, visit zoomermedia.ca
Cautionary note on forward looking statements
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Certain statements made in this report are ‘forward-looking statements’ which may include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words ‘believe’, ‘anticipate’, ‘expect’, ‘estimate’, ‘project’, ‘will be’, ‘will continue’, ‘will likely result’ or similar words or phrases. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in filings by ZoomerMedia Limited with provincial securities commissions. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to, the following:
- the risks inherent in magazine publishing;
- the risks inherent in the operation of Internet media properties;
- the risks inherent in the operation of television broadcast properties;
- the risks inherent in the operation of radio broadcast properties;
- the risks inherent in the operations of affinity partners with respect to royalty revenue;
- the risks inherent in the operation of consumer shows generally,
- the competition within the media industry for the baby boomer generation’s business;
- the risks associated with governmental regulation of the publishing, internet, radio broadcasting and television broadcasting businesses;
- the results of legal claims made by or against the Company;
- the dependence of the business on the continuing operation of its computer systems; and
- the dependence of the business on key personnel.
Given these risks, and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. ZoomerMedia Limited does not intend and does not assume any obligation to update these forward-looking statements.
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