Frankly Provides Additional Financial Details of Radio Platform Asset Purchase
NEW YORK, May 2, 2019 /PRNewswire/ -- 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.
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.
SOURCE Frankly Media
Released May 2, 2019