KEW MEDIA GROUP INC. (“KEW” or the “Company”) (TSX:KEW and KEW.WT) today announced that its Board of Directors (the “Board”) has formed a special committee (the “Special Committee”) of independent directors to examine strategic alternatives for the Company. This follows expressions of interest from a number of parties concerning potential transactions involving the Company. These alternatives could include, among other things, the sale of part or all of the Company, a merger or other business combination with another party, new capital initiatives or other strategic transactions. The Special Committee is chaired by David Fleck and includes Patrice Merrin and Maish Kagan, and its financial advisor is TD Securities Inc.
David Fleck, Chair of the Special Committee, said: “KEW is a leading content platform comprising highly coveted assets in its global portfolio of production and sales companies. The Board’s goal is to maximize value in the best interests of KEW and all its stakeholders.”
KEW has also learned that certain reports provided by Geoff Webb, the Company’s Chief Financial Officer, to the Company and its senior lenders contained inaccurate information regarding working capital. Mr. Webb has now left the Company. The Company is conducting a detailed review of these matters with the support of its financial and legal advisors and is currently in discussions with its senior lenders regarding this and its short-term liquidity requirements.
The Company has appointed Michael Corrigan as interim Chief Financial Officer. Mr. Corrigan was recently introduced to the Company and is an experienced media and entertainment executive with more than twenty-five years’ experience in general management, operations, strategic planning, finance and administration in addition to serving on the boards of directors of both public and private companies. Mr. Corrigan was previously Senior Executive Vice President and Chief Financial Officer of Metro Goldwyn Mayer Inc. (“MGM”). Prior to MGM, Mr. Corrigan was a senior partner in the Entertainment, Media and Communications practice at Price Waterhouse LLP. More recently he was at Sonar Entertainment/RHI.
Peter Sussman, Executive Chair, commented: “Management is fully supportive of these initiatives. We remain keenly focused on running KEW’s operations.”
Steven Silver, Chief Executive Officer, added: “We welcome Michael Corrigan to the Company and look forward to working with him.”
There can be no assurance as to the form or timing of any transaction(s) as a result of the exploration of strategic alternatives and KEW does not intend to update the market on its progress unless or until it determines that further disclosure is appropriate or necessary.
About KEW MEDIA GROUP INC.
KEW MEDIA GROUP is a leading publicly listed content company that produces and distributes multi-genre content worldwide. With primary offices in London, Los Angeles, New York, Sydney and Toronto, KEW companies develop, produce and distribute more than 2,000 new hours of content every year, as well as manage a library of more than 14,000 hours of content, for almost every available viewing platform worldwide. KEW aspires to offer great content from all over the world to viewers of all ages and tastes. KEW promotes transparency, equality, respect, and inclusiveness and plans to grow with the benefit of people from a wide range of perspectives and backgrounds.
Forward-Looking Statements
This news release may include forward-looking statements. All such statements constitute forward-looking information within the meaning of securities law and are made pursuant to the “safe harbour” provisions of applicable securities laws. Forward-looking statements include statements regarding the potential outcome of KEW’s strategic review process. Such statements are based on current expectations of the Company’s management and inherently involve numerous risks and uncertainties, known and unknown, and there can be no assurance as to the outcome of KEW’s strategic review process. In particular, there can be no assurance as to the form or timing of any transaction(s) as a result of the exploration of strategic alternatives and KEW does not intend to update the market on its progress unless or until it determines that further disclosure is appropriate or necessary.
View source version on businesswire.com: https://www.businesswire.com/news/home/20191211005441/en/
Copyright Business Wire 2019