TORONTO, Ontario, January 10, 2014 – Mood Media Corporation (ISIN: CA61534J1057) (TSX: MM) (LSE AIM: MM) (“Mood Media” or the “Company”) today announced an agreement to sell its residential Latin American music operations to its long-term independent affiliate and operating partner, Stingray Digital (“Stingray”) for $16.3 million. The transaction further advances Mood Media’s strategy to simplify its portfolio, aggressively integrate and streamline its operations, and invest in its core businesses to enhance growth opportunities.
Under the terms of the agreement, Mood Media will receive an initial cash payment of $10 million and an intercompany settlement of $1.4M. Upon the residential Latin American operations’ achievement of certain key performance indicators, Stingray will pay Mood Media the remaining amount over a period of 18 months. Proceeds from the transaction will enhance Mood’s strategy to advance and integrate its systems and solutions in order to accelerate revenue growth and achieve synergy gains across its global footprint.
“This transaction strengthens our balance sheet as we execute our strategy to broaden audio, visual, mobile, scent and experiential solutions to support current and prospective clients,” said Steve Richards, Chief Executive Officer and President. “We are pleased to achieve this milestone, further underscoring Mood’s commitment to delivering growth and enhanced returns for stakeholders. We will continue to evaluate opportunities to simplify our portfolio, leverage Mood operating infrastructure and resources to deepen relationships with clients, and create heightened value for shareholders. We remain focused on achieving our vision for ensuring Mood Media is recognized as the global leader for In-Store and In-Office Experiential Solutions.”